Florida insurance officials have moved to shut down Northern Capital Insurance Co. after concluding that the firm is insolvent.
The Office of Insurance Regulation (OIR) made an official request to the state’s Department of Financial Services (DFS) to initiate delinquency proceedings on Wednesday. Northern Capital CEO Wayne Fletcher and company directors signed an order consenting to the state’s action on Feb. 25.
As a result, agents and policyholders are being advised to cancel their Northern Capital policies and seek new coverage immediately. Unearned premium will be refunded to policyholders. If customers cannot get replacement coverage from a private insurer, they are eligible to apply for coverage with state-backed Citizens.
OIR said it anticipates that DFS will petition the court to order Northern Capital into receivership. If the company is ordered into liquidation all policies will be cancelled no later than 30 days from the date of the liquidation order. Based on the insurer’s financial statements, liquidation appears to be a strong possibility, according to OIR.