GALLAGHER SAYS FLORIDA PREFERRED POLICYHOLDERS WILL BE PROTECTED THIS
Tom Gallagher, Florida’s chief financial officer, announced that
policyholders with Florida Preferred Insurance Company will be protected
this hurricane season because company officials finally agreed to let the
financially-troubled property insurer enter into liquidation effective June
“This decision is in the best interest of 140,000 Floridians who were
covered by Florida Preferred and deserve protection,” said Gallagher, who
petitioned a court on May 9 to put Florida Preferred into liquidation. “Our
focus will now be getting the company’s outstanding claims resolved as
quickly as possible.”
A hearing, set for May 30, was originally scheduled to deliberate the
company’s refusal to liquidate Florida Preferred. Now that company officials
have consented to liquidation, the hearing will focus on having the judge
sign the consent to liquidation agreements for three financially-impaired
insurers with Poe Financial Group, including Atlantic Preferred, Southern
Family and Florida Preferred.
The judge will also be presented with the transition plan for Poe’s
policyholders for approval. Under the plan, Gallagher wants 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.
If approved by the court, the Department of Financial Services, which
Gallagher oversees, would be appointed receiver for the three insurers in
liquidation. As receiver, the department assumes the company’s operations
and liquidates its assets to pay outstanding claims.
Once the companies are in liquidation, the department can also tap into
guaranty funds through the Florida Insurance Guaranty Association (FIGA) so
claims get paid immediately. FIGA is funded by insurers with written
premiums in the same lines of coverage.
For more information, policyholders can contact the Department of Financial
Services at 1-800-342-2762 or log onto www.MyFloridaCFO.com.