GALLAGHER PETITIONS COURT TO PUT POE
INSURANCE COMPANIES INTO LIQUIDATION
Gallagher says liquidation will ensure claims get paid and policyholders are
Tom Gallagher, Florida’s chief financial officer, announced that he has
petitioned a court to order three financially troubled property insurers of
the Tampa-based Poe Financial Group into liquidation. All three insurers –
Southern Family, Atlantic Preferred and Florida Preferred – have refused to
consent to liquidation. Gallagher said the companies’ refusal only drains
company resources that should be directed to pay outstanding claims.
“These insurance companies have not presented a viable plan to get back on
their feet financially,” Gallagher said. “Our focus now needs to be getting
outstanding hurricane claims paid as quickly as possible. Once the companies
are in liquidation, the department can tap into guaranty funds so claims get
If approved by the Leon County Circuit Court, the Department of Financial
Services would be appointed receiver for the three insurers in liquidation.
As receiver, the department would take over the company’s operations and
liquidate its assets to pay outstanding claims. The Florida Insurance
Guaranty Association (FIGA) is also activated to help pay claims. FIGA is
funded by insurers with written premiums in the same lines of coverage.
Southern Family primarily wrote commercial residential and personal
residential coverage, and covered approximately 43,000 policyholders.
Atlantic Preferred and Florida Preferred together provided coverage to
nearly 280,000 homeowners and condominium unit owners, mostly in South
In the coming weeks, Gallagher will also petition to the court to allow Poe
policyholders unable to secure coverage in the private market to
automatically transition to Citizens Property Insurance Corporation by July
2 without the need to fill out a new application. Citizens’ rates would be
applied when a policyholder’s anniversary date arrives, which is when their
current policy is scheduled for renewal.
For more information, policyholders can contact the Department of Financial
Services at 1-800-342-2762 or log onto
www.MyFloridaCFO.com. The order is posted at
Florida Preferred Letter to cfo gallagher from
southern family petition for order of liquidation
atlantic preferred petition for order of liquidation
florida preferred petition for an order to show cause