ORDERED INTO REHABILITATION
Gallagher Says Policies are Still in Force
Tom Gallagher, Florida’s chief financial officer, announced that a judge has
ordered Florida Select Insurance Company into rehabilitation. Under the
order, the company’s 70,000 homeowners policies are not cancelled at this
time and the company may continue to write new and renewal business while
the department reviews its financial situation.
Leon County Circuit Court Judge Thomas Bateman ordered Florida Select
Insurance Company into rehabilitation as a result of the expiration of its
reinsurance on June 30, 2006. Reinsurance is insurance for insurance
The judge also appointed the Department of Financial Services as receiver
for the company. As receiver for a company in rehabilitation, the department
steps in to administer the insurer’s operations and assets, and to help the
insurer gain financial strength to continue to doing business.
“Our first priority is to the policy holders, and making sure they have
coverage during the hurricane season,” said Gallagher, who oversees the
department. “This action will protect homeowners while conserving the
company’s assets, with the goal of helping it regain enough financial
strength to actively compete for business.”
Gallagher said that Florida Select policyholders should continue to pay
premiums in order to maintain their insurance coverage.
Policyholders who need to report a new claim can contact 1-888-700-0101.
Policyholders who would like to check on the status of an existing claim
should contact 1-888-617-1145. For all other inquiries, consumers may visit
the company’s website at
www.floridaselect.com or call Florida Select’s helpline at
1-888-700-0101. Additional information is available through the Department
of Financial Services at
www.floridainsurancereceiver.org or 1-800-882-3054.