NU Online News Service, April 10, 11:28 a.m. EDT
Coral Insurance Company, a Florida residential property insurer with 11,750 homeowner policyholders, has been put in receivership, the Florida Department of Financial Services announced yesterday.
The order by Leon County Circuit Court Judge P. Kevin Davey made the department receiver for the Hollywood, Fla.-based carrier.
An agreement has been reached with Security First Insurance Company and the MacNeill Group Inc. to provide replacement coverage to Coral policyholders, the announcement said.
Homeowners with homes valued at under $1 million will have the option to get coverage with Security First, while homeowners with homes valued at $1 million or more will have the option of coverage with the MacNeill Group Inc., according to the department.
Florida Chief Financial Officer Alex Sink said, "I urge all Coral Insurance policyholders to contact their agents and determine the best option as this transition takes place."
"Our top priority is to help make the coverage transition for policyholders as smooth as possible for Floridians," she said.
Coral Insurance Company consented to being placed in receivership for rehabilitation. The company stopped writing new coverage in early March and stopped writing renewal coverage after March 29, 2009.
On March 27, the Florida Office of Insurance Regulation had issued an order suspending the company's ability to write new business for six months. OIR said Coral reserves to cover claims were $2,206,579 below the legally required surplus of $4 million. The company was formed in 2004.
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