Florida Home Insurer, Magnolia Insurance Company, Placed Under Administrative Supervision
Florida insurance regulators have placed Coconut Grove, Florida based Magnolia Insurance Company under administrative supervision, saying that the company is in unsound financial shape. The insurer voluntarily agreed to the supervision, which will last at least 120 days from December 14th, 2009. The company's president, H. James Irl, has resigned.
The state stepped in after Magnolia lost its rating from the actuarial firm of Demotech. They lost the rating due to failure to submit financials and other proofs to the firm. Under the terms of the supervision, Magnolia will be restricted in their ability to write or renew policies. They have agreed to work with the Florida Office of Insurance Regulation to develop a plan of action to turn the business around; plans may include selling the business to another company.
According to Florida law, the company is required to notify any of its customers if their policies will not be renewed. Because of this, there will be a short time when Magnolia will be allowed to renew policies that are past the window of notification of non-renewal.
State officials are urging policyholders not to renew with Magnolia but rather to transfer their policies to another carrier before their policy expires. Read more about the woes of this Florida insurance company at Florida Insurer Magnolia Placed Under State Supervision.
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