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Key Facts, Common Myths About Protecting Homes from Hurricanes
With weather forecasters calling for a worse-than-average 2010 Atlantic basin hurricane season, the Institute for Business & Home Safety (IBHS) is advising property owners on the most effective ways to protect their homes and businesses from hurricane damage. IBHS is also trying to dispel some common myths about hurricane preparedness. Forecasters predict 15 named storms…
Another Florida insurer faces suspension: Olympus Insurance
By Julie Patel, Sun Sentinel Insurance Commissioner Kevin McCarty said today that Olympus Insurance Co. must beef up its claims paying reserves and resolve accounting issues by May 7 or face suspension. In an order to the company, McCarty said the company doesn’t have enough money to pay claims if more than one major hurricane…
Florida to Shut Down Insolvent Northern Capital
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…
Florida Insurers’ Fees To Affiliates Questioned
Consumer advocates call for more scrutiny as insurers report losses and request rate hikes By Julie Patel, Sun Sentinel Florida property insurers are pressing state legislators to allow them to raise rates without regulator approval, citing losses in recent years. But consumer advocates and regulators question the legitimacy of the losses after four hurricane-free years…
Florida Rebukes Insurer Over Transactions
By Paige St. John, Herald Tribune A Florida property insurer that bought hurricane protection from its own Bermuda company has been ordered to attempt to recover the money, following a Herald-Tribune report about the transaction. State regulators gave Homeowners Choice Property and Casualty 21 days to seek the return of more than $9 million it…
Florida Sinkhole Reappears after Rain
Sinkhole that formed was 520 feet long, 125 feet wide, and 60 feet deep. Bartow, Polk County, Fla. May 22, 1967. (Photo courtesy of USGS) A 20-foot sinkhole in Clermont, Fla., opened up this Monday between two homes, and the recent heavy rains could be to blame. In 2001, a sinkhole appeared in the same…
How Insurers Make Millions On The Side
By Paige St. John, Herald Tribune Today, nearly half of Florida’s home insurance is provided by companies whose primary profit comes not from insuring homes but from diverting premiums into a host of side ventures. Investors and executives in 2008 moved $1.9 billion in policyholder money out of heavily regulated insurers, where profits are capped and…
State Lawmakers Signal an Easing of Insurance Controls
LEGISLATURE: Compromise would let insurers raise rates by up to 10% a year TALLAHASSEE – The effort by Sen. Mike Bennett, R-Bradenton, to allow insurance companies in Florida to set their own rates appears doomed just two weeks into the legislative session, done in by election-year politics and the threat of a veto by Gov.…
Insurers Under Scrutiny for “Excessive” Profit and Management Fees
Southern Oak Insurance Co.’s high profits and management fees are limiting its ability to build claims-paying reserves, according to the Office of Insurance Regulation. Regulators threatened to suspend or revoke the company’s license by the end of the month if it doesn’t address their concern that its management agreement with its affiliate — Southern Oak…
Florida’s Southern Oak Told to Correct Its Business Plan; Other Companies Are Being Examined
Florida’s Southern Oak Insurance Co. has some explaining to do and several other of the state’s property insurers may be soon to follow. The Florida Office of Insurance Regulation has ordered the Jacksonville, Fla.-based, take-out company to submit a corrective action plan to regulators to address concerns about reinsurance, managing general agents and exposure. The…
