News Service of Florida reported that the Florida Department of Financial Solutions will liquidate St. Johns, which the firm is looking for court approval of a “shift strategy” that would move St. Johns’ policies to another insurance provider, Slide Insurer.
Dempsey’s order came 2 days after Florida Insurance coverage Commissioner David Altmaier sent out a letter to state Chief Financial Officer Jimmy Patronis suggesting that St. Johns had actually consented to the receivership and acknowledged its insolvency.
“The recommendation of this business to the [Department of Financial Services’] Department of Rehab and Liquidation is the initial step in a detailed strategy to offer a smooth shift for all St. Johns Insurer insurance policy holders,” stated Altmaier in his letter.
Altmaier’s letter did not divulge the number of policies would be impacted by the receivership. However according to details on St. Johns Insurance coverage’s site, the business offered house owners policies in Florida and South Carolina. St. Johns had actually likewise informed insurance coverage representatives that it would suspend composing brand-new organization on February 15, 2022.
The district court order will set off a procedure where the Florida Insurance coverage Warranty Association and the South Carolina Residential Or Commercial Property and Casualty Insurance coverage Warranty Association will spend for St. Johns’ impressive claims.
Find Out More: Progressive dropping protection for 56,000 Florida houses
The insolvency of St. Johns Insurance coverage is simply the current bump in Florida’s rocky home insurance coverage market. Last month, Progressive revealed that it was dropping protection for 56,000 Florida houses, pointing out a rise in prosecuted claims and expenses in the state.
On the other hand, back in August, insurance provider Gulfstream Home & Casualty entered into liquidation after it was put under the administrative guidance of Florida’s Workplace of Insurance coverage Policy. It was identified that Gulfstream was economically not able to pay claims or concern refunds worth in between $60 million and $65 million.