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CFO Sink Saves Jobs, Protects Consumers after Insurance Company Liquidated

9/3/2009

FOR IMMEDIATE RELEASE: September 3,2009                               
CONTACT: Kyra Jennings or Nina Banister, (850) 413-2842
 
CFO SINK SAVES JOBS, PROTECTS CONSUMERS AFTER INSURANCE COMPANY LIQUIDATED
Transition Plan Set for First Commercial Will Preserve Jobs
 
TALLAHASSEE- Florida CFO Alex Sink announced today that the Department of Financial Services has saved more than 100 jobs and protected approximately 15,000 Florida policyholders by successfully negotiating a transition plan for the policyholders of First Commercial Insurance Company (FCIC) and First Commercial Transportation and Property Insurance Company (FCTPIC).  These insurers were ordered into liquidation by Leon County Circuit Court on August 24, 2009.
 
As stated by a Court Order signed today, Miami-based Ascendant Commercial Insurance, Inc. will offer replacement coverage to most of the policyholders and will employ many of the former employees of First Commercial.
 
“Our department has worked diligently to ensure that many employees were offered positions with the new company and that Florida policyholders were protected,” said CFO Sink.  “Especially in these challenging times, it was important to us to save these jobs and allow for an orderly transition for consumers.”
 
The effective date of the new policy with Ascendant will be September 23, 2009 or upon expiration of the policyholder’s coverage with FCIC/FCTPIC, whichever event occurs sooner.  Ascendant’s strategic focus will be to serve the small to medium sized business owner in the State of Florida with a full menu of insurance products including workers compensation, general liability, commercial vehicle, garage keepers and for-hire transportation.  Ascendant will not initially be offering policies in the following lines of business: commercial multi-peril, monoline commercial automobile, warranty, errors and omissions, and medical malpractice.
 
The Court Order also stipulates that policyholders, except for the lines not provided new coverage from Ascendant, will receive an introduction letter within five days of commencement, a pre-filled application and premium quote based on FCIC and FCTPIC policy data using Ascendant rates, and an invoice.  This documentation will be mailed to customers no later than September 15, 2009. 
 
FCIC wrote workers’ compensation, commercial auto, general liability and commercial multi-peril insurance policies in Florida and Georgia. FCTPIC wrote commercial auto insurance coverage in Florida. Together, the companies at one time had approximately 18,000 in-force policies.  The Florida Department of Financial Services has acted as the appointed receiver of both FCIC and FCTPIC since July 10, 2009, when the companies consented to be placed in receivership for the purpose of rehabilitation.  By Court Order, all automobile service warranty policies written by FCIC were cancelled as of August 24, 2009, the date of liquidation.  
 
For more information regarding the offer from Ascendant Commercial Insurance, Inc., consumers may call the company’s Florida consumer service hotline at (305) 820-4360.   For other questions, Floridians can call CFO Sink’s consumer help line at (850) 413-3089 or toll-free at 1-877-My-FL-CFO or visit www.MyFloridaCFO.com.   
 
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