Two Florida Insurers Face Insolvency Actions: Seminole, AequiCap

March 14, 2011

  • March 14, 2011 at 11:30 am
    Hillsborough agent says:
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    Does Seminole Casualty provide homeowners insurance?? I thought they were auto insurance only??

    at one point it says they were a homeowners company and later it states commercial auto. I thought they were personal and commercial auto but no homeowners. Of course, the article also refers to them as ‘Sunrise’ at one point so….

    • March 14, 2011 at 11:36 am
      Mr. Solvent says:
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      Last I checked they did commercial auto and personal auto. Only offered PIP/PD and 10/20 limits. Their insolvency will likely show a need for PIP reform now as opposed to later.

      • March 14, 2011 at 11:54 am
        Hillsborough agent says:
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        Why any agent/carrier would write a policy with just PIP/PD is beyond me. That’s just inviting a lawsuit.

        • March 14, 2011 at 12:30 pm
          Mr. Solvent says:
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          I know some agents who offer PIP/PD. They have the opinion that if the carrier offers it so should they.

          I’m of the opinion that if the state has a financial responsibility law, it’s an agent’s responsibility to make sure the insured meets it.

          • March 14, 2011 at 1:42 pm
            Hillsborough agent says:
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            Exactly. If a PIP/PD customer has an accident with bodily injury, they can have their license suspended for 20 years or until they pay off the judgment.

            I hate lawyers but I wouldn’t blame them for suing the agent in that case.

        • April 19, 2011 at 1:02 am
          AmikaJenkinsD says:
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          A lot of companies write Pip/PD only policies in FL. Bi should be offered for the customer to decide also though. Customers need to be aware of what they’re purchasing and not pretend they wont’ be at fault for injuring people.

  • March 14, 2011 at 2:03 pm
    MJC says:
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    How do they let carriers get to the point of not being able to make payroll before they take action? Where was the oversight here, everyone knew Aequicap was underpricing their auto product and writing classes no one else would, but we let them do this for years and now the State has to step in and clean up the mess. To bad Alex Sink couldn’t provide a sweet deal to someone to buy out the mess like they did with First Commercial.

    • March 15, 2011 at 10:01 am
      Mr. Solvent says:
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      The OIR needs to make sure they don’t cause a panic while a carrier gets their financial cards in order. Unfortunately they give these companies far too long to get themselves in a sound position.

  • March 14, 2011 at 5:53 pm
    heidi says:
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    Help – should i pay my monthly payment?
    Am I covered?
    Should I look for anothe auto insurance company?

    • March 15, 2011 at 11:16 am
      Mr. Solvent says:
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      I cannot speak to your coverage because I’m not your agent. I would however immediately look to purchase something else.

    • March 15, 2011 at 11:44 am
      Hillsborough agent says:
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      I agree with Mr. Solvent. I’d look for something else now. Most independent agencies represent 7 or 8 auto carriers. You should be able to find a better company.

    • March 15, 2011 at 12:27 pm
      Sarah says:
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      Go get an auto policy from an (Bests A+ rated) auto carrier. There are many. Stay away from any agents that advertise low rates, low down payments etc. Some very good carriers are as follows.

      Auto Owners Insurance Company A++ – #1 in JD powers consumer claims satisfaction, Nationwide.

      Cincinati Insurance Company A++ – Very good carrier.

      Nationwide, Allstate, State Farm – All have good claims depts.

      Safeco – Great claims dept. owned by Liberty Mutual now.

      • March 15, 2011 at 1:05 pm
        Hillsborough agent says:
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        Ever give any thought to the fact that this person may have been with Seminole Casualty for a reason?

        • March 15, 2011 at 2:12 pm
          Mr. Solvent says:
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          I like Bristol West, now Foremost for higher risk drivers. Obviously Progressive still plays in this market as well.

          • March 15, 2011 at 3:02 pm
            Sarah says:
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            I have found that with the broadening of most underwriting of personal lines auto writers, it is not the driver that is dictating the placement of these clients with these carriers it is the agent who has no quality contracts who places them with these carriers because they are either paid more commission or they only are contracted with non standard carriers. Solvent is write with Progressive, Foremost or Bristol West you probably are going to be ok. But first try a great standard carrier!

  • March 15, 2011 at 9:51 am
    wudchuck says:
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    here’s the problem with your thought about the pip/pd only… this is why most folks get confused and think this is a no-fault state! state does not require bi cvg, because it mandates pip of 10k. first mistake! second mistake is what happens afterwards? how many claims, medically are over 10k? many probably! this is why this state needs to reform, and make everyone carry bi cvg, remove the pip… truly inform folks that it does not matter, but someone has to be at-fault, and if so, your responsible! this would truly put folks on the map getting the appropriate coverage hopefully. i am suprised that folks have not sued the state because of the lack of required bi limits! every other state has bi cvg…

    • March 15, 2011 at 10:02 am
      Mr. Solvent says:
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      The financial responsibility law DOES dictate that everyone carry BI. It’s merely a loophole that you’re only on the hook if you’re at fault and cause BI.

      • March 15, 2011 at 11:42 am
        Hillsborough agent says:
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        It is legal to drive without BI insurance. It is just illegal to have an accident resulting in BI without BI insurance. That is Florida in a nutshell.

        • March 15, 2011 at 2:33 pm
          Mr. Solvent says:
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          Illegal to have an accident is the key…you never know when/if it will happen.

  • March 15, 2011 at 12:19 pm
    Sarah says:
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    Some agents refuse to discuss the financial condition of the carriers writing coverage. I believe it is not only a professional agents right to do so but our duty to inform our clients and yes even potential clients of the condition of the carriers out there writing. If I have a carrier with a superior financial position compared to a florida start up with little capital and very low reserves, I have no problem telling someone they should even pay more and move their business. Quality of the carriers financials, claims paying reputation and ability, the Quality of the coverages and the general reputation of the carrier in the way they treat their agents and customers is the most important factor when reccomending a carrier to a client!

    NOT PRICE! ANY IDIOT CAN DO THAT!

    • March 15, 2011 at 1:07 pm
      Hillsborough agent says:
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      So I assume you put your clients with GeoVera or another E&S carrier rather than placing them with Citizens?

      Do you also refuse to participate in Citizens take-outs?

      • March 15, 2011 at 1:45 pm
        Hillsborough agent says:
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        assuming you’re in Florida, of course.

      • March 15, 2011 at 2:11 pm
        Mr. Solvent says:
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        I Sure wish GeoVera or the other Excess/Surplus lines carriers were competitive with Citizens in my area. I can promise I’d place with them before I’d place with Citizens.

        As far as takeouts go, it doesn’t look like we’re going to have a chance to opt out for too much longer.

        • March 15, 2011 at 3:05 pm
          Sarah says:
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          I agree with Solvent again. Yes I would rather place my accounts with anyone but Citizens. Just wait after a storm, the agents who have a large Citizens book will be waiting forever to get their checks. The adjusters will be there quickly but the checks will take forever if they are able to cut the checks. At least these E&S carriers have reinsurance which should pay pretty quickly to them and therefore to the clients sooner. Citizens will be waiting for a bond issuance or federal help if it is the big storm we all fear.

  • March 15, 2011 at 2:23 pm
    wudchuck says:
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    problem, you are missing the point, they are not required to carry bi… because they have PIP coverage… folks remember that all 50 states require some form of insurance… wish they would get rid of PIP and require BI cvg… in the long run, it makes sense, because if you hit me, why and why should i have my own insurance take care of my medical bills?

    • March 15, 2011 at 3:13 pm
      Sarah says:
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      Wudchuck,

      PIP was created to avoid a backlog in the courts for lawsuits related to minor medical bills. How would you like to be the judge in a court room with two carriers trying to determine who was at fault in every accident. The attorneys would love it. On the oposite side is the State of Michigan which has unlimited PIP. The State has created a state catastrophe fund for Personal Auto PIP claims. They have litereally hundreds of millions in the account there to pay future medical bills and lost wages for anyone in the state who gets injured in an auto accident. The problem is the State has figured a way to take money out of the fund and leave an IOU in the hat. Now every person who has an auto policy in Michigan is paying about $80 every six months for a fee to the PIP Cat fund in addition to their PIP coverage which is higher than most. The carriers in Michigan pay the first $250K of bills then administer the claims for the State and recieve their reimbursement for claims payments which are unlimited for the life of the injured party. This was done back in 1973.

  • April 13, 2011 at 2:54 pm
    carryualong says:
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    I dont see anything wrong with pip not everyone can afford it and in this country we cant just walk everywhere you might be ritch and got all the money in the world for you to speak this way but look at it this way is not anyones fault that this two companies are getting sued is there own fault for taking in the money and not to what they where suppost to be doing with it…if you had any of this two companies i would waight till i get a letter stading any information about this whole mess because i had seminole and i want my money back that i had paid them..and thats just my opinion

  • April 19, 2011 at 12:59 am
    AmikaJenkinsD says:
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    The current policies from the companies will either get cancelled or bought by another insurer.

    Regarding PIP.. Florida state requires PIP coverage.. I dont’ know much about commercial policies but it’s required on personal policies. It’s purpose is to keep people from being sue-happy with injuries.

    These insurers are going under because they mis managed thier money and the amount they owe in claims and the amount they have to pay claims is looking bad.



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