Division of Rehabilitation and Liquidation

Company Information

Effective October 9, 2009, American Keystone Insurance Company ("American Keystone") was ordered into receivership for purposes of liquidation by the Second Judicial Circuit Court in Leon County, Florida ("Court"). The Florida Department of Financial Services is the court appointed Receiver of American Keystone. In accordance with the terms of the liquidation order, all policies are cancelled at 11:59 p.m. on November 8, 2009, unless otherwise cancelled earlier in the normal course of business.

Background Information

American Keystone, a Florida corporation licensed in 2007, is headquartered in Ponte Vedra Beach, Florida. The company primarily wrote homeowners, condominium unit owners, personal inland marine and residential condominium association policies in Florida. American Keystone has approximately 7,800 policies in force, including homeowners, commercial, residential and wind policies.

10/29/09 Update: Offer of Replacement Coverage for Selected American Keystone Residential Homeowners Policyholders

In order to assist American Keystone policyholders, the Florida Department of Financial Services, as Receiver of American Keystone, has arranged with Homeowners Choice Property and Casualty Insurance Company (“Homeowners Choice”) to provide an offer of replacement insurance coverage to selected American Keystone policyholders. The agreement with Homeowners Choice benefits the selected policyholders in that it offers a potentially smoother transition of the policies to another insurance company and also benefits the American Keystone creditors in that Homeowners Choice will pay the American Keystone estate set amounts under the agreement for policies retained by the insurer.

Homeowners Choice will offer this insurance coverage to American Keystone policyholders who have residential homeowners’ policies with Coverage A limits under $1 million. Homeowners Choice is an authorized insurer in Florida and has a Demotech, Inc., Financial Stability Rating of “A,” which meets the needs of most mortgage lenders. At this time, Homeowners Choice will be able to offer this insurance coverage to the selected policyholders, providing that the policyholders have no property damage to their homes. However, Homeowners Choice will be able to offer insurance coverage to policyholders with property damage upon receipt of evidence that the home repairs have been completed. In the interim, the Receiver is urging policyholders with property damage to work with their agents in seeking replacement insurance coverage.

The Receiver and Homeowners Choice are sending letters to all affected policyholders suggesting that they contact their agents to learn how they may take advantage of the Homeowners Choice offer. Homeowners Choice has agreed to provide a limited representation agreement to all American Keystone agents in connection with their program to provide replacement insurance coverage. Agents are asked to contact Homeowners Choice through its agent hotline at (727) 213-3607 for additional information regarding this offer. To view copies of the motion/order approving this agreement and to view the notices mailed to both agents and policyholders alerting them of the offer of coverage from Homeowners Choice, please click here.

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