Division of Liquidation and Liquidation
|Name of Company||Northern Capital Insurance Company|
|Date of Rehabilitation||April 12, 2010|
|Date of Liquidation||May 1, 2010|
|Policy Cancellation Date||May 30, 2010|
|Claims Filing Deadline||April 30, 2011|
|Type of Coverage||Property and Casualty|
|State of Domicile||Florida|
|Status of Receivership||Liquidation|
Notice of Receivership
On April 12, 2010, Northern Capital Insurance Company (“Northern Capital”) was ordered into receivership for purposes of rehabilitation by the Second Judicial Circuit Court in Leon County, Florida. The Florida Department of Financial Services is the court appointed Receiver of Northern Capital. The company admitted that it is insolvent and consented to the receivership. At the same time the Court entered the rehabilitation order, the Court also entered an order liquidating Northern Capital effective May 1, 2010. The Department requested the combination of the rehabilitation, followed directly by the effective May 1, 2010 liquidation of Northern Capital, primarily in order to allow the Department additional time to assist Northern Capital’s policyholders in their efforts to obtain replacement property and casualty insurance coverage prior to the beginning of the 2010 hurricane season. To view copies of the rehabilitation and liquidation orders for Northern Capital, click here.
Company Demographic Information
Northern Capital, a Florida corporation licensed in 2006, is headquartered in Miami, Florida. The company was authorized to transact business in the state of Florida as a domestic property and casualty insurer. Northern Capital wrote homeowner’s multi-peril, inland marine and automobile insurance coverage in Florida.
Northern Capital had approximately 62,000 policies in-force as of the initial date of receivership. The largest concentration of policies is located in Palm Beach, Miami-Dad and Broward counties.
An affiliate of Northern Capital, Landmark One Insurance Company changed its name to Northern Capital Select Insurance Company effective April 27, 2009. On December 31, 2009, Northern Capital Select Insurance Company merged with Northern Capital Insurance Company, with Northern Capital Insurance Company as the surviving entity. Therefore, policies written through all three companies are now insured under the same company name, Northern Capital Insurance Company.
Northern Capital's existing policies were cancelled by the liquidation order effective 11:59:59 P.M. on May 30, 2010, unless otherwise terminated prior to that date.
Offer of Replacement Insurance Coverage for Selected Northern Capital Policyholders from American Integrity Insurance Company:
Prior to receivership, the Florida Office of Insurance Regulation arranged with American Integrity Insurance Company (“American Integrity”) to provide an offer of replacement insurance coverage to selected Northern Capital policyholders with homeowners’ insurance coverage. The agreement with American Integrity benefits the selected policyholders in that it offers a potentially smoother transition of the policies to another insurance company and also benefits the Northern Capital creditors in that American Integrity will pay the Northern Capital estate set amounts under the agreement for policies retained by the insurer.
On November 4, 2010, the Receiver mailed 7,387 Proof of Claim forms to all known claimants. The claim filing deadline is May 2, 2011.
On May 31, 2011, the Receiver completed the process of returning unearned premiums and closed the bank account. The Receiver returned unearned premiums to more than 33,000 policyholders. A total of 1,619 checks totaling $726,961.33 were not negotiated and the funds have been transmitted to Unclaimed Property.
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