A judge named a receiver for Tampa-dependent property insurance provider Avatar Assets & Casualty Insurance coverage Co. for “purposes of liquidation.” Avatar has 37K procedures.
TALLAHASSEE, Fla. – A Leon County circuit decide issued an purchase putting a Tampa-based house insurance company into condition receivership, as issues keep on to mount for house owners and insurance coverage businesses.
Choose John Cooper on Monday appointed the Florida Office of Fiscal Providers as receiver for the “purposes of liquidation” of Avatar Property & Casualty Insurance policy Co.
The order arrived just after the office submitted a petition March 4 searching for appointment as receiver, stating that Avatar was bancrupt – about a week right after yet another circuit judge appointed the section as receiver for Orlando-dependent St. Johns Insurance plan Co., which also was regarded insolvent.
Devin Galetta, communications director for the Office of Economic Solutions, mentioned Avatar experienced about 37,000 guidelines in Florida as of March 2. The office has contracted with a firm, Evaluation Methods, LLC, to serve as a special deputy receiver.
In notices to policyholders and brokers dated Monday, the division reported Avatar procedures will be canceled as of April 13, with statements for damages right before that day managed by a program recognised as the Florida Insurance plan Warranty Association.
“If you have not now mentioned this make a difference with your agent, make sure you contact your agent immediately to make absolutely sure that you get new coverage to switch your Avatar coverage,” stated the notice to policyholders, posted on a web site about the liquidation. “Your agent is in the very best posture to recommend you as to your coverage solutions.”
Galetta reported in an e mail that the department has “employed, with court approval, a exclusive deputy receiver to communicate with policyholders on subsequent actions and will work as a result of the usual guaranty affiliation procedure to cover current statements. To further secure policyholders, any prospects for procedures to be transferred to other companies to avert loss of protection will be explored.”
The Avatar situation is in contrast to the receivership of St. Johns Insurance coverage Co., whose insurance policies were transferred to Slide Insurance Co.
The receivership also will come as the amount of guidelines in the state-backed Citizens Property Insurance policy Corp. continues to enhance by hundreds a week. Citizens, which was established as an insurer of previous vacation resort, had 792,616 insurance policies as of the finish of February.
Michael Peltier, a Citizens spokesman, claimed Tuesday that Citizens expects to get some policies due to the fact of the Avatar liquidation but that many likely will be picked up by non-public insurers.
In a March 2 letter to state Main Economical Officer Jimmy Patronis about pursuing the Avatar receivership, Insurance coverage Commissioner David Altmaier reported the company experienced agreed to the move and acknowledged that it was insolvent.
“OIR (the Business office of Insurance plan Regulation) has worked carefully with Avatar Home & Casualty Insurance policy Firm to aid selections for individuals so they have obtain to steady coverage in the voluntary marketplace,” Altmaier wrote. “While no insurance provider has expressed an curiosity in furnishing protection to all of Avatar’s policyholders, quite a few insurers have expressed an curiosity in probably offering protection to some of Avatar’s policyholders through immediate solicitation by their appointed agents.”
The Avatar receivership is the newest proof of problems in the property-insurance policies current market, as businesses shed policies and seek out large charge will increase to consider to minimize money risks.
Condition lawmakers deemed proposals to bolster the industry and assistance change guidelines out of Citizens to private insurers, but the Senate and House could not reach settlement on a program just before the yearly legislative session ended Monday.
Supply: News Support of Florida