JUDGE APPROVES NEW POLICY OPTIONS FOR
Leon County Circuit Court
Judge Terry P. Lewis approved an order allowing Royal Palm Insurance
Company (Royal Palm) and Security First Insurance Company (Security First)
to offer new coverage to the 57,000 homeowner policyholders currently with
Maitland-based Vanguard Fire & Casualty Company. Today’s order follows one
Judge Lewis signed last week naming the Department of Financial Services the
receiver for Vanguard for purposes of liquidation, effective yesterday, and
ordering current policies cancelled at 12:01 a.m. on April 25, 2007.
“We want to ensure these
Floridians have an offer in hand as they begin to shop for new coverage,”
said Florida Chief Financial Officer Alex Sink, who as CFO oversees the
department. “Our top priority is to take care of policyholders and ensure
their claims are paid.”
Each policyholder will
receive an offer of new coverage from either Royal Palm or Security First,
effective April 25, 2007, or upon expiration of the policyholder’s Vanguard
coverage, whichever occurs first. Policyholders also will be free to choose
other companies for coverage.
The Department of Financial
Services was named receiver in January for purposes of rehabilitation and
has paid more than $6 million in claims using company assets, but determined
the company’s cash and reserves are not enough to keep up with claims.
Vanguard claimants who need
to check on the status of an existing claim, or report a new claim should
call the Florida Insurance Guaranty Association at 1-866-928-4310.
Questions relating to current Vanguard policy, coverage and claim issues
should be directed to Vanguard Fire & Casualty Company at 1-866-830-6423.
Policyholders with questions regarding the offers of new coverage should
contact their agent or call Royal Palm and Security First at 1-866-351-3060.
For any other questions,
consumers can call the Florida Department of Financial Services at
1-800-882-3054. The liquidation order can be read at
The order signed today is attached and can also be read at