Policyholders Of Liquidated Fla. Companies Receive Lifeline

NU Online News Service, Sept. 4, 11:50 a.m. EDT

The Department of Financial Services said it has saved more than 100 jobs and protected 15,000 of the state's policyholders who were insured by two insolvent insures by transitioning those risks to another insurer.

The state's Chief Financial Officer Alex Sink said yesterday that the state has worked out a plan where the policies and employees of First Commercial Insurance Company (FCIC) and First Commercial Transportation and Property Insurance Company (FCTPIC) will transition to Miami-based Ascendant Commercial Insurance, Inc.

FCIC and FCTPIC were ordered into liquidation by Leon County Circuit Court on August 24.

Under the agreement, Ascendant will offer replacement coverage for policyholders and will employ many of the former employees.

The Florida Department of Financial Services placed the two insolvent insurers in receivership on July 10.

The department noted that it later discovered that FCIC sold over 2,000 automobile service warranty policies that were not reflected in the company's books, records and financial statements. As a result, all automobile service warranty policies written by FCIC were cancelled.

All other policies were scheduled for cancellation on Sept. 23. Under the new arrangement, Ascendant will take on the policies by that date or upon expiration.

Ascendant's strategic focus is to serve Florida's small to medium sized business owners with workers compensation, general liability, commercial vehicle, garage keepers and for-hire transportation coverages.

Ascendant will not initially be offering commercial multi-peril, monoline commercial automobile, warranty, errors and omissions, and medical malpractice coverages.

"Our department has worked diligently to ensure that many employees were offered positions with the new company and that Florida policyholders were protected," said Ms. Sink. "Especially in these challenging times, it was important to us to save these jobs and allow for an orderly transition for consumers."

FCIC wrote workers' compensation, commercial auto, general liability and commercial multi-peril insurance policies in Florida and Georgia, the department said.

FCTPIC wrote commercial auto insurance coverage in Florida. Together, the companies had approximately 18,000 in-force policies.