|Name of Company:||Southern Family Insurance Company|
|date of rehabilitation:||April 25, 2006|
|Date of Liquidation:||June 1, 2006|
|Policy Cancellation Date:||July 1, 2006|
|Claims Filing Deadline:||June 1, 2007|
|Guaranty Association:||Florida Insurance Guaranty Association (you are leaving the DFS website and opening a new browser window) (FIGA)|
|Type of Coverage:||Property and Casualty|
|State of Domicile:||Florida|
|Status of Receivership:||Liquidation|
Effective June 1, 2006, the Second Judicial Circuit Court in Leon County, Florida, entered orders placing Atlantic Preferred Insurance Company, Florida Preferred Property Insurance Company, and Southern Family Insurance Company in receivership for purposes of liquidation. These companies were members of the Poe Financial Group and are referred to together as the Poe Insurers. The Florida Department of Financial Services is the court-appointed Receiver of the Poe Insurers.
Southern Family was a Florida corporation that was formed in 1996 and was headquartered in Tampa, Florida. The company was authorized to transact business in the state of Florida as a domestic property and casualty insurer. Southern Family wrote homeowners multi-peril, allied lines, and fire insurance coverage. In March 2006, Southern Family reported an impaired financial condition on its annual financial statement as of December 31, 2005. As a result of its financial condition, the company ceased writing new insurance policies and ceased offering renewal policies on or about March 5, 2006. Southern Family was initially placed in receivership for purposes of rehabilitation on April 25, 2006. As of June 1, 2006, Southern Family had approximately 44,500 policies in force (not including flood policies).
In conjunction with the Office of Insurance Regulation, the Florida Insurance Guaranty Association, and Citizens Property Insurance Corporation, the Department developed a plan to provide for an orderly transition of eligible policyholders from the Poe Insurers to other insurers or to Citizens while continuing to serve the interests of the Poe Insurers creditors and the public. This plan was submitted to and approved by the Court on June 2, 2006. Under the Liquidation Plan, eligible policyholders were automatically transitioned to Citizens Property Insurance Corporation effective July 1, 2006 without the need for a new application or additional underwriting review. A copy of the Liquidation Plan is available here. A summary of the Liquidation Plan is available here.
Claim Evaluation and Distributions
On April 14, 2011, the First Interim Claims Report was filed with the Court in the estate of Southern Family. On April 15, 2011, the Court issued an order approving the report. The First Interim Claims Report addresses claims filed in Classes 1, 2, 3, 4, 6, 7 and 8. Only claims in Classes 1 and 2 were evaluated due to limited assets in the estate. The Department does not anticipate a distribution to any claimants beyond Class 2. On April 26, 2011, Notices of Determination ("Notices") were mailed to the 3,302 claimants that filed a claim in the estate. The Notice informed them of the Department's recommendations concerning the classification and amount of their claim, along with instructions on how to proceed if a claimant objected to the recommendations. Objections were required to be filed by the claimant, in writing, with both the Court and the Department and postmarked by June 2, 2011. Objections filed after that date were not considered.
On October 4, 2012, the Department mailed Notices of Determination to all known claimants. All classes were evaluated and the amount recommended along with the class assignment are identified in the notice. The Objection Filing Deadline was November 16, 2012. Objections were not accepted after that date.
On July 13, 2017, the Department mailed 232 distribution checks totaling $3,224,276 to Class 1 and 2 claimants. In total, the Department distributed $368,539,257 representing 100% of the Class 1 and 36.67% of the Class 2 claims in the Southern Family estate. The Department does not anticipate any further distributions in this estate. Claimants receiving payment should pay close attention to the Notice Regarding Time Sensitive Distribution Checks.