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 Management — is “unfair and unreasonable” to its policyholders, according to an order the Office issued Tuesday.
Regulators say Southern Oak is one of several companies with management fees that are under scrutiny but they said they can’t release the names of the other companies yet.
Southern Oak has 53,834 policies statewide with about half of its exposure in South Florida.