This section is applicable when an investor makes an offer to purchase an insurer in receivership. An “Insurer” refers to a Company that sells insurance.
For a list of insurers that are currently for sale, please
click here.
Below are the procedures involved in the purchase of a insurer in receivership. The first step will allow an interested party
to pre-register with the Receiver to receive notification when an insurer is for sale. The remaining steps identify
various processes that have to be completed to finalize the transaction.
- Register with the Receiver to be notified when insurers become available for sale.
- For details on the minimum requirements needed in order to purchase an insurance company, please click here.
- Execute a Confidentiality Agreement for a specific insurer in receivership and return it to the Receiver.
- Request information from the Receiver in order to perform due diligence.
- Submit an offer to purchase to the Receiver.
- If the offer is recommended, execute an agreement.
- The Receiver will seek approval from the Receivership Court for the sale of the insurer and will then notify the potential buyer.
- Place a non-refundable deposit with the Receiver.
- If the Receivership Court approves the transaction, the potential buyer will need to file an acquisition application with the Florida Office of Insurance Regulation and receive approval to purchase the company and become a licensed insurer in Florida.
- If the acquisition is approved by the Florida Office of Insurance Regulation, complete all remaining requirements within the executed sales agreement.
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The Receiver will seek Court approval of the transaction and, if appropriate, a discharge of the Receiver.
This section is applicable when an insurer offers a new policy of coverage to the insurer in receivership’s “book of business". A “book of business” refers to the insurer in receivership’s in force insurance policies.
In order to purchase books of business of an insurer in receivership, the potential purchaser will need to be a licensed insurer who is authorized to write the types of insurance products that are for sale.
For a list of books of business (without assumption) that are currently for sale, please
click here.
Below are the procedures involved in the purchase of books of business
(without assumption) from an insurer in receivership. The first step will allow an interested party
to be added to our mailing list in order to be notified when books of
business (without assumption) are for sale. The remaining steps identify
various processes that have to be completed to finalize the transaction.
- Register with the Receiver to be notified when books of business become available for sale.
- Execute a Confidentiality Agreement for a specific insurer in receivership and return it to the Receiver.
- Request information from the Receiver in order to perform due diligence.
- Submit an offer to purchase books of business to the Receiver.
- If the offer is recommended, execute an
agreement with the Receiver.
- If the policies are located in the state of Florida, file a notice of the transaction with the Florida
Office of Insurance Regulation. If policies are located outside of Florida, obtain approval from the insurance regulator in that state, if required.
- If the Florida Office of Insurance Regulation (or other state regulator) approves or has no objection to the proposed purchase, the Receiver will seek Court approval of the transaction.*
- The Receiver will seek Court approval of the transaction.*
- If the transaction is approved by the receivership court, complete the remaining requirements within the executed agreement.
*The Court previously approves the Receiver’s plan to sell assets of the insurer.
This section is applicable when there is a transfer of risk from an insurer in receivership to another insurer whereby the insurer agrees to assume all obligations of the insurer in receivership as of a certain date with respect to the assumed “book of business.” A “book of business” refers to the insurer in receivership’s in force policies.
In order to purchase books of business of an insurer in receivership, the potential purchaser will need to be a licensed carrier who is authorized to write the types of insurance products that are for sale.
For a list of books of business (with assumption) that are currently for sale, please
click here.
Below are the procedures involved in the purchase of books of business
(with assumption) from an insurer in receivership. The first step will allow an interested party
to pre-register with the Receiver to receive notification when books of
business (with assumption) are for sale. The remaining steps identify
various processes that have to be completed to finalize the transaction.
- Register with the Receiver to be notified when books of business become available for sale.
- Execute a Confidentiality Agreement for a specific insurer in receivership and return it to the Receiver.
- Request information from the Receiver in order to perform due diligence.
- Submit an offer to purchase books
of business to the Receiver.
- If the offer is recommended, execute an agreement with the Receiver.
- If the policies to be assumed are located in the state of Florida, file an application with the Florida
Office of Insurance Regulation to approve this proposed transaction. If policies are located outside of Florida, obtain approval from the insurance regulator in that state, if required.
- If the Florida Office of Insurance Regulation (or other state regulator) approves or has no objection to the proposed purchase, the Receiver will seek Court approval of the transaction.*
- If the transaction is approved by the Court, complete all remaining requirements within the executed agreement.
*The Court previously approved the Receiver’s plan to sell books of business of the insurer.
“Loss Portfolio Transfer” is an agreement whereby the liabilities of the insurer in receivership are transferred to another insurer in exchange for some portion of the assets of the insurer in receivership.
In order to enter into a loss portfolio transfer with an insurer in receivership, the potential purchaser will need to be a licensed insurer who is authorized to write the types of insurance products that were written by the insurer in receivership .
For a list of books of business that are currently for sale as a loss portfolio transfer, please
click here.
Below are the procedures involved in entering into a loss portfolio
transfer agreement with an insurer in receivership. The first step will allow an interested party
to pre-register with the Receiver to receive notification when a Loss Portfolio Transfer is available. The remaining steps identify
various processes that have to be completed to finalize the transaction.
- Register with the Receiver to be notified when the Receiver intends to enter into a Loss Portfolio Transfer.
- Execute a Confidentiality Agreement for a specific insurer in receivership and return it to the Receiver
- Request information from the Receiver in order to perform due diligence.
- Submit an offer for entering into a loss portfolio
transfer agreement with the Receiver.
- If the offer is recommended, execute a loss portfolio transfer agreement with the Receiver.
- If the policies are located in the state of Florida, file a
notice of the transaction with the Florida Office of Insurance Regulation.
If policies are located outside of Florida, obtain approval from the insurance regulator in that state, if required.
- If the Florida Office of Insurance Regulation (or other state regulator) approves or has no objection to the proposed purchase, the Receiver will seek Court approval of the transaction.*
- If the transaction is approved by the Court, complete all remaining requirements within the executed agreement.
*The Court previously approved the Receiver’s plan to sell books of business of the insurer.
