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Circuit Court Judge Orders Coral Insurance Policies Cancelled as of May 31, 2009

4/27/2009


CFO Sink reminds policyholders Hurricane Season is approaching
 
TALLAHASSEE—Leon County Circuit Court Judge P. Kevin Davey has ordered that all policies of Coral Insurance Company, which is currently in receivership for the purpose of rehabilitation, will be cancelled as of 12:01 a.m. May 31, 2009, unless otherwise cancelled or terminated earlier than that date.   The Department of Financial Services has been named Receiver and sought the order to protect policyholders and give them time to find replacement insurance coverage before the start of Hurricane Season.
 
The Hollywood-based company has approximately 11,750 homeowner policyholders but has no reinsurance available for Hurricane Season. 
“We are working hard to ensure policyholders have the coverage they need to protect their homes and their families,” said Florida Chief Financial Officer Alex Sink. “I urge all Coral Insurance Company policyholders to act immediately to ensure coverage is in place before the start of Hurricane Season.”  Hurricane season starts June 1.
Policyholders automatically have the option of replacement coverage with Security First Insurance Company or obtaining coverage through the MacNeill Group, Inc. Homeowners with homes valued at under $1 million have the option to get coverage with Security First, while homeowners with homes valued at $1 million or more may seek coverage through the MacNeill Group.  Policyholders will receive notices explaining the steps they should take to ensure their coverage needs are met before Hurricane Season. Coral Insurance Company policyholders are urged to contact their agents to discuss their coverage options.
 
Coral Insurance Company consented to being placed in receivership for rehabilitation. The company stopped writing new coverage in early March and stopped writing renewal coverage after March 29, 2009.
 
Questions regarding Coral Insurance Company policy and coverage issues should be directed to the Coral Insurance Company at 1-800-875-8330. Claim issues should be directed to Coral Insurance Company at 1-866-478-2379.
 
The rehabilitation order and other related information can be found at http://www.myfloridacfo.com/Receiver/. For any other questions, consumers can call the Florida Department of Financial Services at 1-800-882-3054.