The Florida Office of Insurance Regulation (OIR) placed Gulfstream Property and Casualty Insurance (Gulfstream) under its administrative oversight after the insurer found it was unable to meet the minimum amount required to meet policyholder claims.
Gulfstream, based in Sarasota, FL, will not be able to write new policies under the supervision of the regulator. It will also immediately provide policy information to other insurers that can accommodate their current policyholders. Such a process is usually a confidential matter, but the OIR said in a recent filing that it was “in the best interests of the public” and the policyholder.
The insurer has placed itself under the administrative supervision of the OIR for 90 days. The term may be extended at the discretion of the OIR for as long as it is necessary for Gulfstream to “resolve issues with its financial condition”. Gulfstream has also been instructed to come up with a plan this week for how it intends to reverse its current financial troubles.
In an email statement to the Tampa Bay Times, an OIR spokesman said that the regulator’s priority remains “protecting consumers” and that it will “make every effort to ensure that consumers have access to Have coverage “.
The OIR decision came shortly after the rating agency Demotech withdrew its “A” rating from Gulfstream.
Continue reading: Three Florida insurers have agreed to terminate over 50,000 homeowner policies
Gulfstream was one of three Florida insurance companies approved last month to cancel more than 50,000 homeowner policies in total. For its part, Gulfstream has been approved to release approximately 20,311 homeowner, condominium and tenant policies.
The company also reported an underwriting loss of $ 35 million last year.