Lighthouse Property Insurance Corporation and its subsidiary Lighthouse Excalibur Insurance was declared insolvent and ordered liquidated by a Louisiana Court on April 28, 2022 after it was determined that any further attempts to rehabilitate the companies were futile.
Lighthouse ceased writing business in Florida in February where it had about 27,000 policies in force. The company was downgraded and its rating withdrawn by the ratings firm Demotech on March 29, 2022, and losses pertaining to Hurricane Ida in Louisiana were cited as contributing to the downgrade. It was placed into receivership shortly thereafter.
All policies in the states of Florida, Texas, South Carolina and North Carolina will be canceled 30 days post liquidation. Insureds should seek other insurance coverage as soon as possible. Covered claims including unearned premium claims against the company will be handled by the guaranty associations in the affected states.
The policies in Louisiana remain in force per the court order and all policy provisions remain in effect until the expiration, cancellation or termination of the Louisiana policies unless otherwise ordered by the court. The guaranty fund in Louisiana is triggered by the liquidation order.
While the companies were domiciled in Louisiana, their principal place of business was in Tampa, Florida. This is the third property insurer in Florida to be placed into liquidation in 2022.
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