Sunday, January 29th, 2023

Insurer ordered to liquidate | Insurance coverage Enterprise America

The court docket order mentioned that Lighthouse’s roughly 30,000 insurance policies will probably be canceled inside the subsequent 30 days or by Could 28.

Tampa Bay Enterprise Journal reported that the nonprofit Florida Insurance coverage Warranty Affiliation – which pays for the excellent claims of bankrupt insurers within the state – will cowl as much as $300,000 of unpaid claims, together with unearned premiums.

On March 29, scores agency Demotech withdrew Lighthouse’s stability score as a result of the corporate’s working losses in 2021, when Hurricane Ida struck, have been under the extent of capitalization required for an “A” score. Lighthouse later entered into receivership in April, simply after it had suspended new enterprise in Florida.

Learn extra: Insurers heading for insolvency amid fraud and litigation

Lighthouse is the most recent in a line of insurers which have filed for insolvency within the face of Florida’s catastrophic climate claims severity, a mess of lawsuits, and rampant fraud. Final month, one other insurer that was positioned into state receivership – Avatar Property & Casualty Insurance coverage Firm – was ordered by a Florida court docket to liquidate, canceling some 37,000 insurance policies.

Learn extra: Florida’s Residents Property Insurance coverage added over 25,000 insurance policies in March

The liquidation order additionally comes after Residents Property Insurance coverage Company – the state-run insurer of final resort – reported that it added over 25,000 insurance policies in March. Pressured to tackle much more customers as personal insurers both withdrew enterprise from Florida or filed for insolvency, Residents has warned that it might hit over one million insurance policies by the top of 2022.

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