NU Online News Service, April 7, 12:19 p.m. EDT
A spokesman for the Florida Office of Insurance Regulation said that many insurers have expressed interested in providing coverage for policyholders with suspended home insurer Coral Insurance Co.
OIR spokesman Ed Domansky said the company, which insures 11,766 policyholders had been monitored by the agency since the past hurricane system.
Its ability to write new business suspended for six months on March 27 after OIR found Coral reserves to cover claims were $2,206,579 below the legally required surplus of $4 million. The Hollywood, Fla.-based company was formed in 2004.
According to the suspension order signed by Insurance Commissioner Kevin McCarty, a deal had been in the works for United Insurance Holdings Corp. to buy Coral and assume its liabilities, but that transaction did not go through.
Mr. Domansky said the OIR acted to suspend the company after Coral sent out a memo to agents to start placing renewal business with other insurers. In February, he said, the firm told its agents not to write new business.
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