REQUEST FOR PROPOSAL FOR A LOSS PORTFOLIO TRANSFER (LPT)
NATIONAL TITLE INSURANCE COMPANY
(IN REHABILITATION)
Background:
National Title Insurance Company (NTIC or the “company”) was first licensed in Florida in 1936 to provide Title Insurance.
Pursuant to a Consent Order entered July 6, 2009, NTIC was placed in receivership for the purpose of rehabilitation. The Florida Department of Financial Services (DFS) is the court-appointed Receiver of NTIC. NTIC has not written any new policies since May of 2009. The existing Florida policies remain in force. The Receiver has liquidated all known assets and continues to pay claims. Information concerning the company’s current financial condition is available via the Receiver’s Website http://www.myfloridacfo.com/Division/Receiver/Companies/national_
title/NationalTitleInsuranceCompanyInformation.htm.
On July 13, 2012, the court Order entered an Order Approving Revised Plan of Rehabilitation and Cancellation of Out of State Policies. The Order cancelled all out of state policies, and established a one year claims filing deadline for the filing of any claims on those policies. The court also instructed the Receiver to hold certain funds in order to pay claims for policyholders in the 3 states (AL, GA & TN) where there were in force policies. To read the approved plan in its entirety or to find other information related to NTIC, please visit the Receivers Website at http://www.myfloridacfo.com/Division/Receiver/Companies/national_
title/RelatedDocuments.htm.
Old Republic Insurance Company was the reinsurer for NTIC from March 9, 1990 through the last policy written in May, 2009. The Receiver has settled with Old Republic and the reinsurance has been paid. Prior to November 26, 2008 the reinsurance retention amount was $250,000. Policies written between November 26, 2008 through May 2009 have first dollar coverage.
Pursuant to Section 631.400, Florida Statutes an assessment of $212,478.00 was Ordered and has been virtually fully collected.
Action Required:
Each Proposal for Loss Portfolio Transfer (LPT) must include the assumption of all claim and policy liabilities of NTIC It is the Receiver’s expectation that upon Court approval and completion of the LPT, the NTIC Receivership will be closed.
Specifications:
Proposal should include assets and known and future claims liabilities that would allow for the closure of the NTIC receivership.
Proposal can include the cost of the payment of any outstanding reinsurance amounts due. Proposal could also be submitted without the cost of reinsurance.
The Loss Portfolio Transfer Agreement must be approved by the Receivership Court and the Florida Office of Insurance Regulation .
Attached for your use in submitting a proposal are:
- a Draft LPT Agreement:
and
Due Diligence
As previously discussed there is no reliable data available that identifies all in-force policies for this company. However, all known policies and open claim files can be viewed at the office of National Title and Abstract Company located at:
National Title and Abstract Company
711 N.W. 23rdAvenue
Suite #101
Miami, Florida 33125
All closed claim files are located in Tallahassee at our warehouse and may be reviewed upon reasonable notice and execution of a completed Confidentiality Agreement.
Electronic scanning of all policies is on-going. To make arrangement to visit either the Miami or Tallahassee location, or to obtain due diligence materials needed for review, please contact:
Peter.Watkins@myfloridacfo.com or (850) 413.4486
The deadline to review any of the claim files is April 15, 2013.
Submission of Loss Portfolio Transfer Proposal
Please submit your proposal to via email or fax or mail to:
National Title Insurance Company/LPT
2020 Capital Circle SE Suite 350
Tallahassee FL 32301
EMAIL: Jimmy.Glisson@myfloridacfo.com
FAX: 850.413.3992
The filing deadline has been extended. ALL PROPOSALS MUST BE RECEIVED BY CLOSE OF BUSINESS (5:00 P.M. EDT) on April 30, 2013. The Receiver expects to notify the successful bidder no later than May 31, 2013.
