Quantcast
sun-sentinel.com sun-sentinel.com 15 May, 2022 01:45 am

68,200 home insurance policies to be canceled as hurricane season begins – Sun Sentinel

68,200 home insurance policies to be canceled as hurricane season begins – Sun Sentinel
More than 68,000 policyholders of three insurance companies owned by Sunrise-based FedNat Holding Group are in for a rude surprise just as hurricane season is getting underway: They'll be getting 45-day notices of cancellation and will have to find a new company or go to state-owned Citizens Property Insurance Corp., the insurer of last resort.

More than 68,000 policies of troubled Sunrise-based FedNat Insurance Company and its sister companies Maison and Monarch National will be canceled by the end of June, according to terms of a consent order filed Friday by the state Office of Insurance Regulation.will transfer the remaining 83,000 of its policies to Monarch, which has entered into an agreement with a new investor to provide capital “through an acquisition,” the consent order states.The consent order, signed by Insurance Commissioner David Altmaier, called the early cancellation of policies “an extraordinary statutory remedy reserved to address insurers which [without the cancellations] are or may be in hazardous financial condition.” The consent order stated that without the cancellations, the three companies would not be able to secure adequate reinsurance coverage for the 2022-23 hurricane season and maintain a level of surplus sufficient to meet state financial stability requirements.

FedNat insured 189,644 Florida policyholders in June 2021 but since then has reduced that number to 140,000 as of May 12, the consent order states.It’s unclear from the consent order how the cancellations will be distributed among policyholders across the state or whether private market companies have the capacity to absorb them.

Read full story at sun-sentinel.com