Florida’s dynamic environment, while attractive for residents and visitors, also presents unique challenges, particularly concerning insurance. When insurance companies face financial difficulties, understanding the intricacies of florida insurance specialties, such as the state’s guaranty association system, becomes crucial for policyholders. This article delves into the process initiated when Florida Specialty Insurance Company (FSIC) was ordered into liquidation, highlighting how mechanisms like the Florida Insurance Guaranty Association (FIGA) step in to manage claims and protect policyholders.
Effective October 2, 2019, Florida Specialty Insurance Company (“FSIC”) was ordered into liquidation by the Second Judicial Circuit Court in Leon County, Florida. This date marked a significant event for many policyholders, requiring them to interact with different entities to resolve their claims or obtain premium refunds. The initial liquidation order was later amended on October 25, 2019, to remove disputed findings of fact.
Subsequently, on November 1, 2019, the Court issued a pivotal order requiring FIGA to commence paying FSIC claims and unearned premiums. The Florida Department of Financial Services acts as the court-appointed receiver for FSIC, overseeing the liquidation process. Official documents regarding these orders are accessible on the Department’s website, offering transparency into the proceedings affecting florida insurance specialties in this context.
FIGA’s Role in Florida Insurance Specialties
With the court orders in place, the Florida Insurance Guaranty Association (“FIGA”) was activated. FIGA’s primary function in situations like this is to help pay outstanding property and casualty claims for Florida policyholders of the insolvent insurer. This activation is a key aspect of florida insurance specialties, providing a safety net when an insurance company fails.
The processing and payment of covered claims fall under FIGA’s purview. These payments are subject to the lesser of the original policy limits or FIGA’s statutory maximum cap. Generally, FIGA’s maximum coverage is $300,000 per claim. For condominium and homeowner’s association claims, the cap is $200,000 multiplied by the number of units.
An additional $200,000 is available specifically for structure and contents related to homeowners’ claims, reflecting a particular focus within florida insurance specialties on residential property protection. It’s important to note that no claim payment will exceed this established cap.
Deductibles and Filing Claims Against the Receivership
Understanding the deductible structure is vital for navigating florida insurance specialties during a liquidation. All claims handled by FIGA are subject to a $100 statutory deductible. This $100 is applied over and above any deductible stated in the original FSIC policy.
Policyholders have the option to file a claim directly within the FSIC receivership process. This is the route to potentially recover the $100 statutory deductible imposed by FIGA and for any claim amounts that exceed FIGA’s payment cap. This process allows policyholders to seek recovery for the full scope of their loss, even beyond FIGA’s guaranteed amounts.
Reporting and Checking Claim Status
For policyholders dealing with claims under these specific florida insurance specialties, direct communication is key. Claimants needing to check the status of an existing claim that was previously handled by FSIC should contact the Florida Insurance Guaranty Association.
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The dedicated toll-free number for FIGA inquiries is (800) 988-1450. This number serves as the primary point of contact for updates on claims already in the system. Consumers who need to report a new claim or reopen an existing claim associated with the insolvent company are directed to first contact their insurance agent or call FIGA at the referenced phone number to initiate the process.
How to Report a New Claim or Reopen a Claim
Reporting a new claim or reopening one previously handled by an insolvent insurer like FSIC requires specific information to be submitted to FIGA. This procedure is a critical part of managing florida insurance specialties claims efficiently.
To report a NEW claim or REOPEN an existing one, policyholders or their representatives can email FIGA at [email protected] or fax the required details to (850) 523-1888.
The essential information required for processing includes:
- Policyholder’s Full Name
- Original Policy Number
- Existing Claim Number (only if reopening a claim)
- Date when the Loss occurred
- A concise description of the loss event
- The best contact information for the requestor (including both email address and phone number)
If someone other than the policyholder is reporting the claim, such as an agent or public adjuster, they must attach a letter of representation or an assignment of benefits contract. For Loss Assessment claims, submitting the Board-approved Assessment Letter along with a detailed breakdown of the assessment charges billed to the policyholder is necessary to process the claim under these florida insurance specialties guidelines.
This information can be conveniently sent via fax to (850) 523-1888 or emailed to [email protected]. Following these steps ensures that your claim information is received and processed correctly by FIGA.
Statutory Deadline for Claims and Lawsuits
A crucial deadline exists for policyholders affected by the FSIC liquidation, as defined by Florida Statute Section 631.68. This deadline is an important component of florida insurance specialties regulations during insolvency.
All policyholders should be aware that the statutory deadline for either settling a claim with FIGA or filing a lawsuit against FIGA was October 2, 2021. Adhering to this date was critical for maintaining eligibility for compensation under the state’s guaranty system.
Unearned Premium Refunds and Deductibles
Beyond claims, another significant aspect of florida insurance specialties in liquidation cases is the handling of unearned premium refunds. The Florida Receiver is responsible for processing these refunds on behalf of FIGA.
The Receiver aimed to process all returned premium refunds by December 6th. Refunds for policyholders who opted to transition their coverage to Citizens Property Insurance Corporation were paid directly to Citizens. All other premium refunds were scheduled to be paid directly to the policyholders.
A $100 statutory deductible also applies to premium refunds, mirroring the deductible on claims. This amount is deducted from the total unearned premium refund amount paid, affecting both those who transitioned to Citizens and those receiving individual refunds. Understanding this deduction is part of grasping the financial specifics related to florida insurance specialties in liquidation.
Contacting the Receiver for Questions
For questions specifically regarding the receivership process itself, rather than claim status with FIGA, consumers should contact the Florida Receiver. The receiver’s website offers a “Contact Us” form, accessible at www.myfloridacfo.com/division/receiver.
Alternatively, policyholders can call the Florida Department of Financial Services, acting as the Receiver. The phone number for inquiries within Florida is (800) 882-3054, and from outside Florida, it is (850) 413-3081. These contacts are essential resources for understanding the broader aspects of the FSIC liquidation and its implications for policyholders, representing key elements of florida insurance specialties in practice.
Frequently Asked Questions About Florida Insurance Specialties (FSIC Liquidation)
What is the Florida Insurance Guaranty Association (FIGA)?
FIGA is a non-profit corporation established under Florida law to pay covered claims for policyholders of insolvent property and casualty insurance companies licensed in Florida. It acts as a safety net during insurer liquidations.
What is the maximum amount FIGA will pay per claim?
FIGA generally covers up to $300,000 per claim. For condos/HOAs, it’s $200,000 times the number of units. An additional $200,000 cap applies specifically to structure and contents on homeowners’ claims.
Is there a deductible for claims handled by FIGA?
Yes, a statutory deductible of $100 applies to all covered claims, in addition to any deductible specified in your original policy with the insolvent insurer.
How do I report a new claim related to Florida Specialty Insurance Company (FSIC)?
You should contact your insurance agent or call FIGA directly at (800) 988-1450. You can also initiate the process by emailing [email protected] or faxing details to (850) 523-1888.
What information is needed to report or reopen a claim?
You will typically need the policyholder’s name, policy number, claim number (if reopening), date of loss, brief loss description, and your contact information. Documentation like letters of representation or assessment letters may also be required.
What is the deadline for filing a claim or lawsuit against FIGA?
For the FSIC liquidation, the statutory deadline to settle a claim or file suit against FIGA was October 2, 2021, according to Florida Statute Section 631.68.
What happens with unearned premium refunds?
The Florida Receiver processes unearned premium refunds. Refunds for policyholders who moved to Citizens were paid to Citizens. Other refunds are paid directly to policyholders, minus a $100 statutory deductible.
Who should I contact if I have questions about the receivership process?
For questions specifically about the FSIC receivership, contact the Florida Receiver via the “Contact Us” form on their website (www.myfloridacfo.com/division/receiver) or by calling (800) 882-3054 (in Florida) or (850) 413-3081.