Division of Rehabilitation and Liquidation
| Name of Company: | Florida Preferred Property Insurance Company |
|---|---|
| Date of Liquidation: | June 1, 2006 |
| Policy Cancellation Date: | July 1, 2006 |
| Claims Filing Deadline: | June 1, 2007 |
| Type of Coverage: | Property and Casualty |
| State of Domicile: | Florida |
| Status of Receivership: | Liquidation |
Company Information. Effective June 1, 2006, the Second Judicial Circuit Court in Leon County, Florida, entered orders placing Atlantic Preferred Insurance Company, Florida Preferred Property Insurance Company, and Southern Family Insurance Company in receivership for purposes of liquidation. These companies are members of the Poe Financial Group and are referred to together as the “Poe Insurers.” The Florida Department of Financial Services is the court-appointed Receiver of the Poe Insurers. In liquidation, the Florida Insurance Guaranty Association is activated to help pay outstanding claims of the Poe Insurers.
Atlantic Preferred Insurance Company: Atlantic Preferred is a Florida corporation that was formed in 1996 and is headquartered in Tampa, Florida. The company is authorized to transact business in the state of Florida as a domestic property and casualty insurer. Atlantic Preferred wrote homeowners multi-peril, allied lines, and fire insurance coverage. In March 2006, Atlantic Preferred reported an impaired financial condition on its annual financial statement as of December 31, 2005. As a result of its financial condition, the company ceased writing new insurance policies and ceased offering renewal policies on or about March 5, 2006. Atlantic Preferred was initially placed in receivership for purposes of rehabilitation on May 1, 2006. As of June 1, 2006, Atlantic Preferred had approximately 137,000 policies in force.
Florida Preferred Property Insurance Company: Florida Preferred Property is a Florida corporation that was formed in 2002 and is headquartered in Tampa, Florida. The company is authorized to transact business in the state of Florida as a domestic property and casualty insurer. Florida Preferred Property wrote homeowners multi-peril, allied lines, and fire insurance coverage. In May 2006, Florida Preferred Property reported an impaired financial condition on its quarterly financial statement as of March 31, 2006. As of June 1, 2006, Florida Preferred Property had approximately 144,000 policies in force.
Southern Family Insurance Company: Southern Family is a Florida corporation that was formed in 1996 and is headquartered in Tampa, Florida. The company is authorized to transact business in the state of Florida as a domestic property and casualty insurer. Southern Family wrote homeowners multi-peril, allied lines, and fire insurance coverage. In March 2006, Southern Family reported an impaired financial condition on its annual financial statement as of December 31, 2005. As a result of its financial condition, the company ceased writing new insurance policies and ceased offering renewal policies on or about March 5, 2006. Southern Family was initially placed in receivership for purposes of rehabilitation on April 25, 2006. As of June 1, 2006, Southern Family had approximately 44,500 policies in force (not including flood policies).
Liquidation Plan: In conjunction with the Office of Insurance Regulation, the Florida Insurance Guaranty Association, and Citizens Property Insurance Corporation, the Receiver developed a plan to provide for an orderly transition of eligible policyholders from the Poe Insurers to other insurers or to Citizens while continuing to serve the interests of the Poe Insurers’ creditors and the public. This plan was submitted to and approved by the Court on June 2, 2006. Under the Liquidation Plan, eligible policyholders will be automatically transitioned to Citizens Property Insurance Corporation effective July 1, 2006 without the need for a new application or additional underwriting review. A copy of the Liquidation Plan is available here. A summary of the Liquidation Plan is available here.
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