JUDGE UPHOLDS GALLAGHER’S PLAN TO SMOOTHLY TRANSITION POE
Tom Gallagher, Florida’s chief financial officer, said that a judge
reaffirmed her approval of the Department of Financial Services’ plan to
protect and to smoothly transition nearly 330,000 policyholders with
Atlantic Preferred, Southern Family and Florida Preferred insurance
companies to Citizens Property Insurance Corporation on July 1. The three
insurers are subsidiaries of the Tampa-based Poe Financial Group.
“We remain focused on protecting policyholders and ensuring they have
continuous coverage this hurricane season,” Gallagher said. “Tropical Storm
Alberto was an important reminder of the need to protect our homes and our
families, and our transition plan was developed with this in mind.”
At a hearing in Tallahassee, Leon County Circuit Judge Janet Ferris heard a
recent emergency motion filed by Poe officials regarding the three insurers
they formerly managed. Filed last week, Poe’s motion alleged the
department’s transition plan should have required Citizens to use Poe’s
affiliates – Poe & Associates, Poe Managers, and Mariah – and pay fees to
service policies being assumed by Citizens.
In response, the department refuted Poe’s assertion because Poe’s affiliates
had long provided the employees, facilities and equipment necessary to
operate the three insurance companies the judge had ordered into
liquidation. The department’s response is attached.
On May 30, Judge Ferris signed orders directing the department to take
control of the three insurance companies’ operations and to liquidate the
companies’ assets to pay outstanding claims. On June 1, the judge approved a
transition plan to help homeowners who were covered by one of the three Poe
companies to automatically transition to Citizens Property Insurance
Corporation on July 1.
For more information, policyholders can contact the Department of Financial
Services at 1-800-342-2762 or log onto www.MyFloridaCFO.com.