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Asset Recovery and Management Section

Mission

The mission of the Asset Recovery and Management (ARM) Section is  to identify and marshal all assets of insurance companies in receivership to maximize the collection and sale of various assets to enhance the value of insolvent or impaired estates.

Program Responsibilities of the Section

The ARM Section is composed of three units: Reinsurance Recovery, Tallahassee Asset Recovery, and Miami Asset Recovery. These units identify and collect assets from a variety of sources through a combination of in-house staff  and outside contract providers, as needed.

The responsibilities of the Asset Recovery and Management Section are to:

  • Identify, marshal, record and report assets of the various estates in liquidation.
  • Assist the Special Deputy Receiver with on-site management activities.
  • Secure and manage real and personal property of companies in receivership.
  • Liquidate assets through various sales methods including advertising for sale to highest offer, auctions, bids, or third-party marketing.
  • Negotiate the settlements of reinsurance agreements.
  • Answer public inquiries regarding calculation of return premiums, agent balances and assessments and other general inquiries relating to an insolvent estate.
  • Coordinate with other sections within the division regarding the collection and liquidation of recovered assets.
  • Manage the cost of collections through tracking and evaluation of collections methods and resources used.
  • Manage the performance of outside contract providers.
  • Assist the Special Deputy Receiver in marketing the policies of financially impaired or insolvent companies to solvent carriers to minimize the disruption in coverage for policyholders.

Accomplishments in the 2006-2007 Fiscal Year

  • Developed standards for the ARM Section staff to evaluate reinsurance recovery consultants for efficiency and cost-effectiveness.
  • Revised the fee schedule for all reinsurance provider contracts to provide more financial incentives for early collections and shorter collection periods to assist in a faster closure for open estates.\
  • Drafted new policies, procedures, and guidelines for the ARM Section and updated existing ones.
  • Implemented an audit program to enhance accountability for reinsurance recoveries.
  • Reinsurance Administrator began a series of in-house training to increase knowledge and skills of senior accountants.
  • Assisted in on-site rehabilitation and liquidation activities for six impaired companies.
  • Drafted a chapter for the Rehabilitation and Liquidation ROAD Map Handbook to assist in identifying prospective take-out companies for existing policyholders of insolvent insurance companies.
  • Enhanced existing and added new ARM reports that are placed on the Division intranet for easy access and use by internal customers.
  • Drafted new on-site documentation checklists and tolls for better accountability and record keeping for on-site activities.
  • Initiated a program to scan reinsurance documents into electronic files for access by all Division staff, improve search capabilities for easy file location, and reduce warehouse storage space and costs.
  • Collected approximately $341,000,000 in total assets from reinsurance, Special Disabilities Trust Fund recoveries, statutory deposits, agent commissions, and subrogation and salvage activities for estates in liquidation.
  • Assisted in excess of 500,000 policyholders of the Poe Companies, Florida Select, and Vanguard in finding replacement property insurance coverage when these companies were placed in liquidation.
  • Provided in excess of $300,000,000 in early access money to Guaranty Associations to meet claims payment needs.
  • Identified additional contract providers in the reinsurance and asset recovery units to add depth and quality to outside resources.
  • Developed and coordinated the presentation of a professional development course to offer specific training and education opportunities for receivership, Office of Insurance Regulation, and guaranty association staff.  Continue to cross-train existing staff to maximize the use of resources for on-site rehabilitation and liquidation activities.
  • Updated account status of all collections and recoveries in all open assessable estates to assist in reaching discharge dates for the estates.
  • Developed an accounts receivable element in the Solomon accounting system to properly report reinsurance receivables by estate.

Goals

  • The creation of a Division Internet site that will provide a method to list all estate assets available for purchase/acquisition.  The site will provide all interested parties with a process to review, complete forms and make an offer on all estate property for sale.
  • Update all existing Asset Recovery Policies and Procedures for conformity and clarity in the conduct of all Asset Recovery processes.
  • Develop and implement an automated estate asset inventory tracking system to maintain an up to date listing, the appraised value and sales proceeds of all assets from open estates.
  • Continue to manage the cost of identification, collection and disposal of assets of companies in liquidation that meet or exceed established performance measures.

Staff and Contact Information

The Director of Asset Recovery oversees the daily activities of the Asset Recovery and Management (ARM) Section’s 10 professional and technical staff members in Tallahassee and 14 professional and technical staff members in the Miami office.  The Tallahassee office can be reached at the Division’s main telephone number, (850) 413-3179 and by fax at (850) 922-2555.  The Miami office can be reached by telephone at (786) 336-1350 and fax at (305) 499-2273.  Both offices can be reached via the Internet at www.floridainsurancereceiver.org.  Consumer inquiries may also be directed to the Asset Recovery “general email” at RL.AL@FLDFS.COM.