Florida ‘s Magnolia Insurance to Be Liquidated

May 3, 2010

A Leon County, Florida judge has given state officials the go-ahead to liquidate home insurer Magnolia Insurance Co.

The order was issued April 30.

Magnolia Insurance Co. was placed under administrative supervision by Florida insurance regulators last December after the Office of Insurance Regulation found it to be in unsound financial shape. Its president, H. James Irl, resigned.

Any Magnolia policies still in effect will automatically cancel on May 30. According to the OIR, Magnolia’s policy count has been reduced from about 74,000 last December to about 30,000 policies now.

The Coconut Grove-based insurer had agreed to work with OIR to develop a “corrective plan of action” that could include being acquired.

Magnolia began doing business in April, 2008, with $20 million in capital and 100,000 policies shifted from Citizens.

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