ALERT: Florida Judge Signs Order Placing United Property & Casualty Insurance Company in ReceivershipFebruary 23, 2023 Rebecca Shigley, CIC, TRA, FLMI, AIE, AIRC, ACS, CICSR
** UPDATE 2/28/23 **
Florida Judge Signs Order Placing United Property & Casualty Insurance Company in Receivership
Yesterday, the Florida court approved the Office of Insurance Regulation's order appointing the Florida Department of Financial Services (DFS), Division of Rehabilitation and Liquidation, as the receiver for the liquidation of United Property & Casualty Insurance Company (UPC). As provided by NC statute, all in-force policies with UPC are canceled effective 12:01 a.m., 30 days after the entry of this Liquidation Order. Independent insurance agencies can work with their clients and place coverage with other insurance companies of their choice, but the coverage must be moved within 30 days from the Liquidation Order date of February 27, 2023.
As an admitted insurance company, UPC is a member insurer of the North Carolina Insurance Guarantee Association (NCIGA). When a member insurer is deemed to be insolvent, the Board of Directors of the NCIGA, under the Plan of Operation, may activate the NCIGA to carry out its duties and obligations as defined by statute to protect the insurance buying consumer of the state of NC. Specific information on the handling of insurance company insolvencies is provided on the NCIGA Website. In addition, NCIGA also provides Frequently Asked Questions for North Carolina policyholders and their agents.
IIANC will continue to work with the NCDOI, NCIGA, and other stakeholders to provide members with the latest information regarding this receivership order.
The North Carolina Department of Insurance (NCDOI) reached out yesterday evening to alert IIANC that the Florida Office of Insurance Regulation (FOIR) filed a Consent to Receivership on February 16, 2023, for United Property & Casualty Insurance Company (UPC) and that this information has just now become public. UPC is an admitted insurance company domiciled in Florida and is also a licensed insurer in North Carolina.
In December of 2021, it was announced that HCI Group, Inc. (HCI), a company with operations in insurance (TypTap Insurance Company), had reached an agreement to transition all UPC’s personal lines insurance business in the state of North Carolina to HCI. As part of that agreement, TypTap Insurance Company began appointing NC independent insurance agencies and has been systematically transitioning UPC personal lines policies to TypTap Insurance Company.
This morning, IIANC representatives Joe Stewart, VP of Governmental Affairs, and Rebecca Shigley, Chief Operating Officer, met with Jackie Obusek, Chief Deputy Commissioner at the NCDOI to discuss how an Order of Liquidation of UPC will impact North Carolina independent agencies and their clients insured with UPC.
Chief Deputy Commissioner Obusek advised that a Liquidation Order from FOIR declaring UPC insolvent is expected very shortly and this will trigger a requirement for independent insurance agencies to re-write and move any existing UPC policies to another insurance company within 30 days from the order date. She advised that UPC currently has 8,500 policies in NC and TypTap Insurance Company has stated that they plan to offer insurance coverage to the majority of NC policyholders with the exception of not offering coverage to approximately 1,250 of these insureds. Independent insurance agencies can work with their clients and place coverage with other insurance companies of their choice, but the coverage must be moved within 30 days from the pending Order of Liquidation Date.
As an admitted insurance company, UPC is a member insurer of the North Carolina Insurance Guarantee Association (NCIGA). Chief Deputy Commissioner Obusek also advised that she was able to put NCIGA on alert and they are standing by to handle the obligations of UPC to their policyholders in regard to payment of claims and return of unearned premiums. Specific information on the handling of insurance company insolvencies is provided on the NCIGA Website. In addition, NCIGA also provides Frequently Asked Questions for North Carolina policyholders and their agents.
During times of insurance company financial instability, IIANC often receives questions from our members that take advantage of our exclusive Professional Insurance Liability Program to provide their agency Errors & Omissions insurance. There is an Insolvency Exclusion in the Swiss Re Corporate Solutions America Insurance Corporation policy. However, this exclusion does not apply if, at the time the coverage was placed, such entities were member insurers of the guaranty association in the state. We would advise each member to review the terms and conditions of their specific E&O policy for any Insolvency Exclusion that may apply.
IIANC will continue to keep members informed as we receive additional information.