Florida Insurance Guaranty Association (FIGA) Approves Sunshine State Insurance Liquidation Transition Plan
Jun 9, 2014
The Florida Insurance Guaranty Association (“FIGA”) Board of Directors (“Board”) met in Tallahassee, Florida today, June 9, 2014, to discuss the Sunshine State Insurance Company (“Sunshine State”) liquidation.
On May 30, 2014, the Florida Office of Insurance Regulation (“OIR) had referred Sunshine State for rehabilitation. On June 3, 2014, the Second Judicial Circuit Court in Leon County entered a Consent Order appointing the Florida Department of Financial Services (“DFS”) as the Sunshine State receiver.
FIGA Director of Operations Tom Streukens updated the Board on the Sunshine State situation. Currently, FIGA has received 225 Sunshine-State-related claims, all of which it intends to handle in-house. Sunshine State has approximately 36,000 policies in force.
He said FIGA intends to comply with its statutory obligations, including the issuance of unearned premium checks from which a $100 deductible has been subtracted. FIGA also intends to work with all interested parties to ensure a smooth transition of policies, he added.
Mr. Streukens briefly reviewed the transition plan proposed by the receiver, DFS. The plan calls for the transfer of Sunshine State policies to United Insurance Holdings Corporation. However, he noted that other insurers soliciting businesses could be selected to take the policies. FIGA will not be choosing where the Sunshine State policies will ultimately go, he said.
The FIGA Board voted to authorize FIGA staff to begin the transition plan in compliance with the Court, the DFS and the OIR.
With no further business before the FIGA Board, the meeting adjourned.
A copy of today’s meeting materials are attached for review, including the policy transition plan.
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