Heritage to take on $60m Sunshine State policies
Heritage Insurance has agreed to take on the $60 million portfolio of business written by liquidated insurer Sunshine State Insurance Company (SSIC).
The deal is currently awaiting court approval. If approved by the court, the policies will be offered coverage by Heritage's wholly-owned subsidiary, Heritage Property & Casualty Insurance Company.
On June 3, 2014, SSIC was placed into receivership when a court approved its liquidation. SSIC has approximately $60 million in premium on 35,000 policies covering homes, condominiums and commercial residential buildings.
Under the terms of the agreement, Heritage will have the right to offer coverage to all policies on or before June 27, 2014 and issue bridge coverage until the policy renews.
All policies issued by Heritage will use SSIC's current rates and forms during the transition period. Upon renewal, SSIC policies will receive the lower of SSIC's rates or Heritage's rates and many consumers will receive rate decreases.
"We had to step forward and help our fellow Floridians during hurricane season. We have a duty to help these policyholders and agents with a smooth and seamless transition to Heritage that ensures a continuation of coverage using SSIC's current forms and rates," said Bruce Lucas, chairman and chief executive officer.
Lucas says that a “smooth and easy transition of coverage” for the customer and agent will be handled behind the scenes by Heritage. “Our transition plan guarantees continuation of coverage, rates, forms, and systems. It will be largely unperceivable by agent and policyholder,” he said.
Additionally, the Florida Insurance Guaranty Association (FIGA) is required to collect a $100 deductible to all SSIC policyholders.
Rich Widdicombe, Heritage's president, said: "We thought of the consumer first and did not want to see them penalised as they have done nothing wrong. As a result, we insisted upon paying this deductible for SSIC customers. We look forward to a long-term relationship with these customers for years to come."
