POLICYHOLDERS OFFERED REPLACEMENT COVERAGE AS AMERICAN
SUPERIOR HEADS INTO LIQUIDATION
The skyline for December is downtown
Gainesville, featuring the Hippodrome Theater, originally the post office.
Florida’s Chief Financial Officer Tom Gallagher announced that
an insurance company has agreed to offer replacement homeowners’ coverage to the
60,000 Florida policyholders of American Superior Insurance Company. American
Superior went into state receivership in late September.
Second Judicial Circuit Judge Jonathan Sjostrom approved a consent order
locking in the agreement between North Pointe Casualty Insurance Company and
American Superior. At the same time, Judge Sjostrom ordered American Superior
“I am disappointed that American Superior could not be rehabilitated,” said
Gallagher, who oversees the Department of Financial Services. As receiver, the
department has been overseeing the company’s operations since Sept. 29. “But I
am very pleased that these homeowners, who already have experienced so much
anxiety, can begin the New Year knowing they will have insurance coverage.”
North Pointe will begin sending out letters today to American Superior
policyholders providing them with information about the replacement coverage
offer. North Pointe said it would offer payment options to policyholders who may
be unable to pay premiums in full at this time because of financial hardship
brought on by the storms.
The liquidation order calls for American Superior policies to be cancelled on
Jan. 14, 2005. The department, as receiver, has overseen the payment of more
than $50 million on 10,400 hurricane-related American Superior claims. Beginning
today, claims will be paid by the Florida Insurance Guaranty Association, which
the Legislature created to cover claims when Florida-licensed insurance
companies become insolvent.
North Pointe Casualty Insurance Company and affiliated company North Pointe
Insurance Company are a part of the North Pointe group. North Pointe Casualty is
licensed in Florida, Michigan, Nevada and Louisiana. North Pointe Casualty’s
Florida office is located in Coral Gables.