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Letter from V.P. Jason Levine [October 4, 2019]

Dear Valued Clients,

I am writing you today because your insurance is currently with Florida Specialty Insurance Company. Even if you’d already left Florida Specialty, there is some important information to share.

We’ve been trying to provide updates and communicate as much as we can since mid-August on the Florida Specialty insolvency situation. We have finally received confirmation today that on Wednesday, October 2, Florida Specialty was ordered liquidated by the Second Judicial Circuit Court in Leon County (Tallahassee). The Florida Department of Financial Services has been appointed Receiver.

  • If you are a homeowner (HO3 policies) we have either issued replacement coverage for you through Nationwide Insurance effective September 28th, 2019, worked with you to some other circumstance, or we are actively working to contact you regarding additional information needed to get replacement coverage in place.
  • If you are a condominium unit owner, the owner of a rental or non-owner occupied home, or a mobile home owner we have quotes ready for you and we’re in the process of trying to contact you. We need to speak with you ASAP, as for these types of policies we absolutely need your involvement with paperwork to get replacement coverage activated.

If we haven’t spoken with you or you do not have replacement coverage in place please call us immediately.

 Here is a quick rundown on exactly what’s happening:

  1. All roughly 91,000 Florida Specialty policies will be cancelled effective November 1, 2019 at 12:01 a.m. Formal notices should begin going out by U.S. Mail immediately.
  2. The Receiver, the Florida Dept. of Financial Services, will continue to accept claims for up to 1 year.
  3. The Receiver, the Florida Dept. of Financial Services, will continue to administer in-progress claims.  The Florida Insurance Guarantee Association (FIGA) will stand behind Florida Specialty claims as needed, but only within the scope of FIGA.  You can learn more here.
  4. The Receiver, the Florida Dept. of Financial Services, will continue to process pro-rata refunds that may be due to you. Unfortunately, those refunds are now subject to a $100 deductible imposed by Florida law. (Translation: Your refund will be $100 less than what it would normally be. Even if you’ve already moved from Florida Specialty, this will apply to you if your refund has not yet been processed.)

We are legally required to inform you that:

  • FSIC’s insurance policies are cancelled effective 12:01 a.m. on November 1, 2019, unless otherwise terminated prior to that date.
  • As your agent, we will first work to find coverage in the private market.
  • If we cannot find coverage for policyholders in the private market, Citizens Property Insurance Company (“Citizens”) will provide you with a guaranteed offer of coverage, but it must be bound using the process Citizens has put into place. There will be no lapse in coverage.
  • The deadline for filing claims in the FSIC receivership proceeding is 11:59:59 p.m. on October 2, 2020.

Please call us to discuss your options without delay. Our biggest goal is to make sure that you come through this process with the highest quality insurance coverage that we can make available to you. We look forward to speaking with you. As always, your business, professional trust, and your referrals are most appreciated.

View the Court Order for Liquidation here.

Important FAQ and Contact Information for Affected Policy Holders

About the Author

Jason Levine

Jason received a Masters of Science & Management in Risk Management & Insurance from Florida State University. He has been with Harry Levine Insurance for 9 years and handles the leadership of daily operations. He was the 2013-2014 Florida Association of Insurance Agents Young Agent Council's Agent of the Year. Currently serves on FAIA Board of Directors.