I am a Coral policyholder who received a premium refund check even though I did not cancel my policy. Why did I receive this check and do I still have coverage?
You received the refund check because all in-force policies of the company were cancelled effective at 12:01 a.m. on May 31, 2009. As you are aware, Coral was placed into rehabilitation on April 9, 2009. Due to the company’s financial situation and inability to purchase adequate reinsurance for the 2009 hurricane season, the Receiver was granted court approval to cancel all in-force policies at 12:01 a.m. on May 31, 2009.
The Receiver previously sent notices to all known agents and policyholders of the company notifying everyone of this action
Why was $100 deducted from my unearned premium refund?
To help assure that Coral had adequate funds to administer the Receivership and avoid any preferential/disparate treatment of policyholders and claimants in the event that Coral was liquidated, the first $100 of the initial return premium/claim payment was retained. Now that the company has been placed into liquidation, the $100 that was not paid or any gross refund of less than a $100 becomes a claim against the estate of Coral. The Receiver has received court approval to have all unearned premium claims of $100 deem filed as a claim against the Coral estate with no action required by claimants.
What if my gross refund is less than $100?
If your gross unearned premium refund is less than $100 you did not receive a refund check. These amounts are now a claim in the Coral estate.
I am owed an unearned premium refund but have not received a check. What do I do?
Premium refunds have been processed and were mailed to all known policyholders that were owed a refund which exceeded $100. If your gross premium refund was less that $100, a refund check would not have been processed. Now that Coral has been placed into liquidation, refunds of $100 or less become a claim against the Coral receivership estate.
If you feel you are owed an unearned premium refund check but did not receive one or if you have other questions about the status of your unearned premium claim, you may contact the Receiver using our "Contact Us" form or by calling 800-882-3054.
Now that the company has been placed into liquidation, how do I go about filing a claim for the $100 deduction or for a premium refund that is less than $100?
The $100 previously retained from your refund and gross refunds of less than $100 are now a claim in the Coral receivership estate. The Receiver has received court approval to have all unearned premium claims of $100 deem filed as a claim against the Coral estate with no action required by claimants.
I have reviewed the calculation of my premium refund. I don’t understand why some of the fees/assessments are fully earned on the first day of the policy and others are returned pro-rata?
The Receiver processed the premium refunds in a manner consistent with the company’s approved rate filing on file with the Florida Office of Insurance Regulation. Within the company’s approved filing, some fees/assessments were fully earned and others were subject to proration when a policy was cancelled mid-term.