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NU Online News Service, Aug. 26, 3:46 p.m. EDT
Two Florida commercial and personal lines insurers with 18,000 policyholders have been ordered into liquidation, it was announced.
The order for First Commercial Insurance Company and subsidiary, First Commercial Transportation and Property Insurance Company, was issued by Leon County Circuit Court Judge Charles A. Francis, the Florida Department of Financial Services said.
DFS said it has been acting as the Miami-based carriers’ receiver since July 10, when the companies consented to be placed in receivership for the purpose of rehabilitation.
Floridians who have property insurance with FCIC should immediately contact their insurance agent to secure coverage with a new company, the department advised.
The department said all questions relating to current FCIC and FCTPIC policy and coverage issues should be directed to FCIC/FCTPIC’s customer service department at (866) 570-2184 until September 23.
FCIC wrote workers’ compensation, commercial auto, general liability and commercial multiperil insurance policies in Florida and Georgia, the DFS said.
FCTPIC wrote commercial auto insurance coverage in Florida. Together, the companies have approximately 18,000 in-force policies. The liquidation orders and other related information can be found at http://www.myfloridacfo.com/Receiver/.
Florida Chief Financial Officer Alex Sink said in a statement, “Given that this liquidation order comes in the middle of the hurricane season, it is imperative that consumers who have property insurance with First Commercial immediately contact their agents to secure new coverage.”
She said her department will continue working “to help make the transition as smooth as possible for Floridians.”
After appointment as receiver, the DFS said it discovered that FCIC sold over 2,000 automobile service warranty policies that were not reflected in the company’s books, records and financial statements.
The department said it is investigating this matter further and by Court Order, all automobile service warranty policies written by FCIC were cancelled as of Aug. 24, the date of liquidation.
With the exception of the automobile service warranty policies, all policies are cancelled effective 12:01 a.m. on Sept. 23, unless otherwise terminated prior to that date, DFS explained.
The department said this includes approximately 550 commercial auto insurance coverage or “for hire” insurance policies written by FCTPIC and approximately 100 in-force policies written by FCIC for Georgia policyholders.
The department recommended that policyholders take the following steps based on the different types of policies issued by FCTPIC and FCIC:
• Workers’ compensation policies are covered by the Florida Workers’ Compensation Insurance Guaranty Association. The number to check on the status of an existing claim is 800-444-9098, extension 531, and the number to file a First Notice of Injury is 407-352-5788 or via e-mail at claimreporting@usis-tpa.com. Additional general information is available at www.fwciga.org.
• Property and casualty insurance policies are covered by the Florida Insurance Guaranty Association (FIGA). Florida claimants can check on the status of an existing claim by calling 866-928-4310 or file a new claim by contacting their agent.
Florida policyholders with property and casualty policies, the department said, will be able to place unearned premium claims with FIGA after the department completes its processing of the policy records and sends the unearned premium records to FIGA. Claims of Georgia policyholders may be covered by the Georgia Insurers Insolvency Pool which may be reached at 770-621-9835.
Policyholders who want to file a claim in the receivership estate for amounts not covered by a guaranty association will need to do so before the claims filing deadline, DFS said. The deadline for filing claims in the FCIC/FCTPIC receiverships is 11:59 p.m. on Aug. 17, 2010.