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Florida Select Ordered into Rehabilitation

7/5/2006

CONTACT:
Tami Torres (850) 413-2842

Gallagher Says Policies are Still in Force
TALLAHASSEE–Tom Gallagher, Florida's chief financial officer, announced today that a judge has ordered Florida Select Insurance Company into rehabilitation. Under the order, the company's 70,000 homeowners policies are not cancelled at this time and the company may continue to write new and renewal business while the department reviews its financial situation.
 
Leon County Circuit Court Judge Thomas Bateman ordered Florida Select Insurance Company into rehabilitation as a result of the expiration of its reinsurance on June 30, 2006.  Reinsurance is insurance for insurance companies.
 
The judge also appointed the Department of Financial Services as receiver for the company.  As receiver for a company in rehabilitation, the department steps in to administer the insurer's operations and assets, and to help the insurer gain financial strength to continue to doing business.
 
"Our first priority is to the policy holders, and making sure they have coverage during the hurricane season," said Gallagher, who oversees the department.  "This action will protect homeowners while conserving the company's assets, with the goal of helping it regain enough financial strength to actively compete for business."
 
Gallagher said that Florida Select policyholders should continue to pay premiums in order to maintain their insurance coverage. 
 
Policyholders who need to report a new claim can contact 1-888-700-0101.  Policyholders who would like to check on the status of an existing claim should contact 1-888-617-1145.   For all other inquiries, consumers may visit the company's website at www.floridaselect.com or call Florida Select's helpline at 1-888-700-0101. Additional information is available through the Department of Financial Services at www.floridainsurancereceiver.org  or 1-800-882-3054.