Florida’s Office of Insurance Regulation (OIR) placed Gulfstream Property and Casualty Insurance (Gulfstream) under its administrative supervision, after ruling the insurer unable to keep the minimum amount of funds to pay policyholders’ claims.
Under the regulator’s oversight, Gulfstream, based in Sarasota, Florida, will not be able to write new policies. It will also immediately make policy information available to other insurers who can support their current policyholders. Such a process is generally a confidential matter, but the OIR said in a recent filing that it was “in the best interest of the public” and policyholders.
The insurer has agreed to be placed under the administrative supervision of the OIR for a period of 90 days. The term may be extended at the discretion of the IRO for as long as necessary for Gulfstream to “resolve issues relating to its financial situation”. Gulfstream has also been ordered to submit a plan this week on how it intends to reverse its current financial woes.
In an emailed statement to the Tampa Bay Times, an OIR spokesperson said the regulator’s priority remains “consumer protection” and that it “will do everything possible to ensure that consumers have access to a blanket “.
The OIR decision came just after the Demotech rating agency withdrew Gulfstream’s “A” rating.
Read more: Three Florida insurers have approved to abandon more than 50,000 home insurance policies
Gulfstream was one of three insurance companies operating in Florida that were approved last month to drop a total of more than 50,000 home insurance policies. For its part, Gulfstream has been authorized to surrender some 20,311 owner, condo and tenant policies.
The company also reported a technical loss of $ 35 million last year.