Company Information
Commercial Insurance Alliance, A Reciprocal Insurance Company
| Name of Company: | Commercial Insurance Alliance, A Reciprocal Insurance Company |
|---|---|
| case number: | 2011-000191 |
| Date of Liquidation: | January 26, 2011 |
| Policy Cancellation Date: | January 26, 2011 |
| Claim Filing Deadline: | April 1, 2011 |
| objection filing deadline: | May 31, 2013 |
| Type of Coverage: | Property and Casualty |
| State of Domicile: | Florida |
| Status of Receivership: | Liquidation |
Company Information
On January 26, 2011, Commercial Insurance Alliance, a Reciprocal Insurance Company (“CIA”) was ordered into receivership for purposes of liquidation by the Second Judicial Circuit Court in Leon County, Florida ("the Court"). The Florida Department of Financial Services is the court appointed Receiver of CIA. The company consented to the receivership.
On March 3, 2011, the Court issued an order finding insolvency and the Florida Insurance Guaranty Association has been activated. However, pursuant to Section 631.52(3), Florida Statutes, FIGA does not provide coverage for claims under surety policies.
Background Information
CIA was licensed as a reciprocal insurer under Chapter 629, Florida Statutes, in 2006. CIA wrote commercial multi-peril liability, commercial auto liability and surety policies. The company was located in Jacksonville, Florida, but closed its main office in 2010. At its maximum level, it is estimated that CIA had no more than 5,000 policyholders. However, under an Order from the Office of Insurance Regulation dated August 19, 2009, CIA’s certificate of authority was suspended and it was ordered to cease writing new or renewal insurance business. At the time of the liquidation, all of the CIA policies had expired and CIA was in a “run-off” mode. Thus, as of the liquidation date, there were no known policyholders.
On April 2, 2013, the court approved the First Interim Claims Report and Recommendation on Claims. On April 15, 2013, the Receiver mailed 61 Notice of Determination letters to all known claimants. Classes 1 through 11 were evaluated and the adjudicated amount owed will be shown in the Amount Recommended Claimant field along with the Classification of the claimant. The Objection Filing Deadline is May 31, 2013.
