NU Online News Service, March 11, 12:57 p.m. EST
The Florida Office of Insurance Regulation has suspended the license of domestic automobile insurer Seminole Casualty Insurance Company, which has reported a negative surplus.
In the meantime, domestic commercial auto and workers' compensation insurer AequiCap Insurance Company has been liquidated, said the Department of Financial Service's Division of Rehabilitation and Liquidation.
According to a letter from Insurance Commissioner Kevin McCarty to Chief Financial Officer Jeff Atwater, the OIR has been concerned about Seminole's surplus and loss reserves since the company filed its 2009 annual statement. The OIR requested that the insurer supply monthly reports.
When Sunrise, Fla.-based Seminole provided the OIR with its 2010 annual statement early this month, it was clear there were serious problems. Seminole reported total liabilities of $31.6 million and total admitted assets of $25.8 million, leaving a policyholder surplus of negative-$5.8 million.
Based on these numbers the OIR found Seminole to be insolvent and revoked its license to do business in the state. The insurer must prove it has regained solvency before its license is reinstated, said an OIR order.
Seminole said it will consent to receivership effective March 9, according to the OIR.
AequiCap, in business in Florida since 1985 with licenses in Florida, Georgia, Oklahoma and South Carolina, had about 2,330 policies and 44 employees. It was ordered into liquidation on March 7.
The Fort Lauderdale, Fla.-based insurer of trucks and taxis was put into receivership on Feb. 28 to be rehabbed, but "it became clear that the company lacked the financial resources for a successful rehabilitation," Mr. Atwater's office said.
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