I recently posted, When Will United Property and Casualty Insurance Company Declare Itself Insolvent? Last week, United Property announced its financial condition at an earnings presentation.
Continue Reading United Property Insurance is Worth Pennies—How Does It Stay In Business?
It has been two years since Real Legacy announced their insolvency1 and only approximately 800 of the claims have been paid (excluding 430 cases that are still in court and all claims that did not have an agreement prior to the insurance company announcing its insolvency).2 In other words, it could take three or four more years for Real Legacy insureds to get their Hurricane Maria claims paid.
Continue Reading Puerto Rico Update: Real Legacy Confirms Rumors of Insolvency – What’s Next? Part II
The propriety of Florida Specialty Insurance Company’s insolvency should be investigated by the media and other Florida leaders. The Florida Department of Financial Services filed what appears to be a spurious motion to disqualify a very reputable insurance company law firm, Cozen O’Connor, that filed a motion, which if correct, shows that a simple accounting error lead to a false claim that Florida Specialty Insurance Company was insolvent.
Continue Reading Did Florida Mistakenly Place an Insurer Into Insolvency, Try to Disqualify the Law Firm That Pointed Out the Mistake and Harm 91,000 Policyholders By Quick and Unnecessary Non-Renewals?
For some time now, people have been keeping a close eye on several of Puerto Rico’s major insurance carriers due to rumors of insolvency. One of those insurance carriers, Real Legacy Assurance, has unfortunately confirmed these rumors and recently filed for liquidation. According to reports, the carrier has paid nearly $40 million dollars to settle approximately 630 claims – however, many more Hurricane Irma and Maria claims remain unresolved.1
Continue Reading Puerto Rico Update: Real Legacy Confirms Rumors of Insolvency – What’s Next?
Most people think insurance companies are flush with billions in cash as they continually underpay and deny claims. For most of the big insurance companies, this is true, but for some smaller companies spread across the country and localized in certain states, solvency can become an issue. Often, insurance companies such as Tower Insurance get bought out or declare bankruptcy because they do not have enough assets to pay their claims and overhead, or other larger insurance companies squeeze them out of the market.
Continue Reading AmTrust Buys Tower Insurance But Finds a Way to Not Pay Tower’s Pending Claims
Yesterday, Judge Kevin Carroll of the Leon County Circuit Court, entered a Consent Order placing Sunshine State Insurance Company (“Sunshine State”) into receivership for liquidation, and stayed all current litigation against the company. Learning of this situation prompted me to call up some folks involved with a recent Sunshine State claim settlement I negotiated to ensure that settlement checks had been cashed . . .you might want to do the same if in a similar situation.
Continue Reading Sunshine State Insurance Company … No Longer Shining
Julie Patel of the Sun-Sentinel continues her dedicated investigative reporting series looking into insurance issues in her recent article, Expect low and slow claims payments if your insurer folds.
Continue Reading Public Adjuster Explains How Policyholder Claims Can Be Compromised When Insurance Carriers Fold
Coral Insurance Company has been placed in receivership. One aspect of handling claims where the insurer is in receivership is that a statutory time limit exists to file a lawsuit. However, for adjusters and policyholders, before a lawsuit can be filed, a "claim deadline" must first be met. We often get requests shortly before the lawsuit deadline only to find the claim deadline had not been met.
Continue Reading Claims Deadlines Set for Coral Insurance Company
FIGA is a legislatively created corporation which handles claims after insurance companies become insolvent. The reality of how FIGA works in the field stands in stark contrast to its stated goal of providing “fast, fair and professional claim service.”
Continue Reading When Insurance Companies Go Under – The Fallacy of FIGA