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Division Director

Sha'Ron James


Division of Rehabilitation and Liquidation
Alexander Bldg.,
2020 Capital Circle SE, Ste. 310
Tallahassee, FL 32301
1-800-882-3054

Assessment FAQs
Commercial Insurance Alliance, A Reciprocal Insurance Company

 

What is this bill for?  Why am I being assessed?

CIA was liquidated in January 2011.  The company does not have sufficient assets to pay all the claims and other related obligations of the company.  Under the CIA subscriber agreement, in the event that there are insufficient funds to pay these expenses, the subscribers of CIA agreed to be assessed in an amount sufficient to pay such expenses. 

What gives the Receiver the authority to assess me?

CIA was a reciprocal insurance company. The application you signed for coverage created a binding contract which made you responsible for the assessment.  The Receiver sought and obtained an order authorizing the assessment of the former CIA subscribers.  The assessment is authorized by the referenced Court Order dated January 27, 2014 (the Order Approving Receiver’s Report and Directing the Assessment of the Subscribers of Commercial Insurance Alliance (“CIA”)). A copy of this order can be found on the company's Related Documents page.

Why am I just now getting a bill when CIA was liquidated in 2011?

To determine if an assessment was necessary, the Receiver first had to determine the gross claim liability. Over the past few years while CIA has been in receivership, the Receiver completed the process of identifying and evaluating claims, as well as marshaling the available assets to determine if an assessment would be necessary.  Unfortunately, there were not enough assets available, making the assessment necessary.

Why did I get more than one bill?  Do I owe for each bill, or are they duplicates?

Each invoice represents an assessment on a separately issued policy. Each bill is separate.  The amount on each bill is owed.

Where can I get a copy of the court order or other documents concerning calculation of the assessment?

The court order and other documents concerning the assessment calculation are posted on the Internet on the company's Related Documents page.

What is the assessment for?  For what will the money collected be used?

The money collected is used to pay claims and other related expenses of CIA.

How was the assessment calculated?

The assessment was based on written premium.  Your bill was calculated based on the total number of policies and the amount of claims paid since CIA was placed in liquidation and the amount required to complete payment of outstanding claims, including other related expenses which are authorized by law.  The assessment was allocated to each former subscriber based on its pro-rata percentage of the total premium written by CIA while the company was in business.

What is the period to which the assessment pertains?

The assessment was calculated on all policies in force between 05/01/2006 and 01/26/2011.

Where do I send my payment?

Florida Department of Financial Services/

Receiver for CIA        

2020 Capital Circle SE, Suite 310

Tallahassee, Florida  32301

Can I get my assessment reduced?

Please note that payments are due on or before April 15, 2014 which is 30 days from the date of the initial invoice. If your payment is made by the April 15, 2014 deadline, you will be granted a 10% discount on the assessment amount due. Thus if you owe $1,000.00, you will only be required to pay $900.00 to satisfy this obligation under your assessable policy.

My company or I can’t afford to pay the entire amount due right now.  Can we pay in installments?

Yes.  To elect an installment payment plan, complete the enclosed Remittance Advice form.  The installment payments will include an interest charge at the annual rate of 4.75% simple interest and must be completed within 90 days. 

What if I object to this assessment?

You must file a written answer within 30 days and send to the Receiver at:

Florida Department of Financial Services/Receiver of CIA

2020 Capital Circle SE, Suite 310

Tallahassee, Florida  32301

Attn: Legal                  

What if I do not pay the assessment?

If you or your company fails to make timely payment within 60 days, this matter will be referred to the Receiver’s Legal Section.  At that time, the Receiver may petition the court for an order to show cause why a judgment should not be entered against you and/or your company. Additionally, you will be charged interest, as permitted by applicable laws, on any assessment amounts which remain unpaid.