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GUARANTEE INSURANCE COMPANY – NOTICE OF RECEIVERSHIP (LIQUIDATION)
On November 27, 2017, Guarantee Insurance Company (“GIC”) was ordered into receivership for purposes of liquidation by the Second Judicial Circuit Court in Leon County, Florida. The Florida Department of Financial Services (“Department”) is the court appointed Receiver of Guarantee Insurance Company.
GIC is a workers’ compensation insurance company located in Fort Lauderdale, Florida.
GIC was originally licensed in Florida in 1977 as a foreign insurer. On January 5, 2007, GIC was redomesticated to Florida from South Carolina.
GIC was licensed in forty states and the District of Columbia, and wrote business in thirty-one states and the District of Columbia at the time of liquidation.
The states other than Florida where GIC had in-force polices at the time of liquidation are Alabama, Arkansas, Colorado, Delaware, the District of Columbia, Georgia, Idaho, Indiana, Kentucky, Louisiana, Maine, Maryland, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, and West Virginia.
POLICY ISSUES: GIC had approximately 8,600 active policies as of November 13, 2017, including 1,250 in Florida. Under the liquidation order, all GIC policies are cancelled effective on December 27, 2017, unless otherwise terminated prior to that date.
CLAIMS ISSUES: Claims Filing Deadline: Under the liquidation order, the deadline for filing claims in the GIC Receivership is May 28, 2018. There are different processes for filing claims against GIC. Some claims are covered by guaranty associations and some claims can only be filed against the estate of GIC because guaranty associations do not cover them.
Information regarding the method for filing claims in the liquidation proceeding will be available on the Department’s website at www.myfloridacfo.com/division/receiver in the near future.
With the entry of the liquidation order, the guaranty associations of the states where GIC wrote business are activated to help pay outstanding covered workers’ compensation claims for GIC policyholders. The processing and payment of pending workers’ compensation claims will be made in accordance with the statutes of each of the affected states. Some states exclude workers’ compensation claims of high net worth insureds and workers’ compensation claims under large deductible policies. These claims will become the responsibility of the policyholder. Contact your state guaranty association for additional details.
Until further notice, consumers with questions regarding GIC should use the following contact information:
Guarantee Insurance Company – Direct Contact Information:
General Information: 800-948-2651 (toll free) or 954-556-1600 (main phone)
Claims (all States): GIC Client Service Center: 1-877-886-4334 (toll free)
If you have any non-claims related questions regarding the receivership, please contact the Department using the “Contact Us” form at www.myfloridacfo.com/Division/Receiver or by calling (850) 413-3081 or toll free at 1-800-882-3054. Additional information regarding GIC and the receivership process will be available soon on the Department’s website, www.myfloridacfo.com/division/receiver. Copies of the Liquidation Order and other relevant information will be available on the Department’s website.
All active GIC agent appointments will be cancelled. Agents that have or had policyholders with GIC are reminded of the notice requirements under s. 631.341, F.S. Written notice of the insolvency of the delinquent insurer must be sent by the agent to the last known address of any/all policyholders by registered or certified mail, or by email with a delivery receipt required.
According to the Coalition Against Insurance Fraud, insurance fraud costs Americans at least $80 billion a year, nearly $950 per family. Agents play an important role in identifying insurance fraud. In the aftermath of Hurricane Irma and the considerable number of resulting claims, Citizens wants agents to be aware of potential fraud and deceptive claims practices, and report:
Potential fraud and deceptive claims practices include:
According to DFS, the definition of a public adjuster, as explained in Section 626.854, Florida Statutes, is any person, except an attorney, who, for money or any other thing of value:
Citizens' agents can help increase awareness of insurance fraud and the ways to prevent it and can help curb assignment of benefits (AOB) abuse by helping your customers understand the importance of calling Citizens first as soon as they know or suspect they have damage. Refer to the Insurance Fraud and Assignment of Benefits sections of our website and the Assignment of Benefits brochure, located in the Learning section of our website.
Florida Insurance Fraud Detective Earns Medal of Heroism for Irma Rescue
CFO Patronis Sponsors Resolution to Raise Awareness for Type 2 Diabetes and Cardiovascular Disease
Chief Financial Officer Jimmy Patronis sponsored a resolution raising awareness for type 2 diabetes as a potentially life-changing medical condition. An estimated 29 million Americans have diabetes, a chronic condition that considerably raises an individual’s risk for developing cardiovascular disease. A recent study indicates that while diabetes necessitates strict monitoring of personal health, 52 percent of adults who have it are not aware of the additional heart health risks. State Representative Gayle Harrell, who co-sponsored a legislative resolution with Senator Kelli Stargel, and Lisa Dwyer, who works in the pharmaceutical field, joined CFO Patronis for the Cabinet resolution presentation.
CFO Patronis said, “Floridians who have more information about their health make better, more informed health decisions. I thank Senator Stargel and Representative Harrell for joining me in raising awareness about two potentially life-threatening diseases. I hope this resolution serves as a reminder that Floridians should closely monitor their personal health and the health of their families. It’s important to see a doctor regularly and to speak up as any health concerns arise.”
To view the resolution, click here.
The 2017 Florida Statutes Are Available Online
The Florida Statutes can be viewed at Online Sunshine