A judge named a receiver for Tampa-based property insurance company Avatar Assets & Casualty Coverage Co. for “purposes of liquidation.” Avatar has 37K policies.
TALLAHASSEE, Fla. – A Leon County circuit choose issued an buy positioning a Tampa-based home insurer into point out receivership, as challenges go on to mount for owners and insurance policies companies.
Choose John Cooper on Monday appointed the Florida Department of Monetary Services as receiver for the “purposes of liquidation” of Avatar Home & Casualty Insurance policies Co.
The purchase came soon after the department submitted a petition March 4 trying to find appointment as receiver, declaring that Avatar was insolvent – about a week immediately after a different circuit judge appointed the department as receiver for Orlando-centered St. Johns Insurance plan Co., which also was regarded as bancrupt.
Devin Galetta, communications director for the Office of Economical Providers, claimed Avatar experienced about 37,000 guidelines in Florida as of March 2. The department has contracted with a business, Assessment Sources, LLC, to provide as a special deputy receiver.
In notices to policyholders and brokers dated Monday, the department said Avatar procedures will be canceled as of April 13, with statements for damages in advance of that date dealt with by a plan acknowledged as the Florida Insurance plan Warranty Affiliation.
“If you have not previously talked over this matter with your agent, please make contact with your agent quickly to make guaranteed that you get new protection to swap your Avatar policy,” said the observe to policyholders, posted on a web-site about the liquidation. “Your agent is in the most effective place to recommend you as to your insurance coverage solutions.”
Galetta stated in an electronic mail that the division has “employed, with court approval, a particular deputy receiver to converse with policyholders on up coming steps and will function by means of the ordinary warranty affiliation course of action to include current statements. To even further safeguard policyholders, any prospects for insurance policies to be transferred to other firms to avoid reduction of coverage will be explored.”
The Avatar problem is in distinction to the receivership of St. Johns Insurance policy Co., whose procedures have been transferred to Slide Coverage Co.
The receivership also will come as the variety of procedures in the condition-backed Citizens Assets Insurance plan Corp. carries on to increase by thousands a 7 days. Citizens, which was produced as an insurance company of very last vacation resort, experienced 792,616 insurance policies as of the close of February.
Michael Peltier, a Citizens spokesman, stated Tuesday that Citizens expects to get some insurance policies mainly because of the Avatar liquidation but that lots of probable will be picked up by private insurers.
In a March 2 letter to condition Chief Monetary Officer Jimmy Patronis about pursuing the Avatar receivership, Insurance policy Commissioner David Altmaier explained the enterprise had agreed to the shift and acknowledged that it was bancrupt.
“OIR (the Workplace of Insurance Regulation) has labored carefully with Avatar Property & Casualty Coverage Corporation to facilitate choices for shoppers so they have access to continual protection in the voluntary marketplace,” Altmaier wrote. “While no insurance provider has expressed an fascination in supplying protection to all of Avatar’s policyholders, several insurers have expressed an desire in most likely delivering protection to some of Avatar’s policyholders by way of immediate solicitation by their appointed agents.”
The Avatar receivership is the latest proof of troubles in the home-insurance policies current market, as businesses lose policies and search for large level improves to try to cut down financial dangers.
Point out lawmakers regarded as proposals to bolster the sector and help shift insurance policies out of Citizens to private insurers, but the Senate and Household could not attain settlement on a prepare prior to the yearly legislative session ended Monday.
Resource: News Company of Florida