On April 30, 2010, Magnolia Insurance Company (“Magnolia”) was
ordered into receivership for purposes of liquidation by the Second
Judicial Circuit Court in Leon County, Florida. The Florida
Department of Financial Services is the court appointed Receiver of
Magnolia. The company admitted that it is insolvent and consented to
Company Demographic Information:
Magnolia, a Florida corporation licensed in 2008, is headquartered in Coconut Grove, Florida. The company previously wrote homeowners policies in Florida and is currently in a run-off mode. Magnolia had as many as 36,000 policies in force as of the liquidation date. The company is only licensed in the state of Florida.
POLICY ISSUES: Under the liquidation order, all Magnolia
policies are cancelled effective 11:59:59 p.m. on May 30, 2010, unless
otherwise terminated prior to that date. Upon liquidation,
property and casualty insurance policies are covered by the Florida
Insurance Guaranty Association for a period of no more than 30 days and
subject to the limits provided in Florida Statute. See below for further
PREMIUM ISSUES: Until directed otherwise, policyholders with installment payment plans should continue to pay premiums as usual in order to continue their insurance coverage with Magnolia until 11:59:59 p.m. on May 30, 2010. Upon liquidation, the Florida Insurance Guaranty Association (“FIGA”) is responsible for paying claims for premium refunds/unearned premium. A $100 statutory deductible will be taken from the amount owed. If the premium refund due is $100 or less, a refund will not be processed by or on behalf of FIGA. A policyholder may have a claim in the Magnolia liquidation proceeding for the $100 deductible or the gross refund less than $100. The Receiver will update its web site, www.myfloridacfo.com/Division/Receiver, with details regarding the processing and payment of the premium refunds as this information becomes available.
Please direct all consumer inquiries to Magnolia’s Customer Service Department by phone at 1-877-828-2149 or by fax at 1-954-837-4355 until further notice. Hours of operation are Monday – Friday from 8:00 AM – 4:45 PM, Eastern Time. This will allow for a smoother transition of data and claims handling operations to FIGA. Additional updates will be posted on the Receiver’s web site, www.myfloridacfo.com/Division/Receiver, as they become available.
For non-claims related questions regarding the receivership, consumers are asked to contact the Receiver by using the “Contact Us” form at the Receiver’s web site, www.myfloridacfo.com/Division/Receiver or call the Florida Department of Financial Services, as Receiver, at 1-800-882-3054 or (850) 413-3081. Copies of the April 12, 2010 Rehabilitation Order and the effective May 1, 2010 Liquidation Order for NCIC and other relevant information is available on the Receiver’s web site, www.myfloridacfo.com/Division/Receiver.