Florida insurer Vanguard ordered into liquidation
 

TALLAHASSEE, Fla. – March 26, 2007 –Leon County Circuit Court Judge Terry P. Lewis has ordered Maitland-based Vanguard Fire & Casualty Company into liquidation, effective Monday, to ensure policyholder claims continue to be paid. The Florida Department of Financial Services (FDFS) was named receiver in January for purposes of rehabilitation and has paid more than $6 million in claims using company assets, but has determined the company’s cash and reserves cannot keep up with claims.

FDFS has a request pending in the same court asking for permission to allow the company’s approximately 57,000 homeowner policyholders to be offered replacement coverage by either Royal Palm Insurance Company (Royal Palm) or Security First Insurance Company (Security First). If the court approves, replacement coverage will be effective April 25, 2007, or upon expiration of the policyholder’s Vanguard coverage, whichever occurs first. Policyholders may also choose other companies for coverage.

“Getting the company into the liquidation process will allow us to immediately begin paying claims from the state’s Florida Insurance Guaranty Association,” says Florida Chief Financial Officer Alex Sink, who as CFO oversees the department.

The company consented to being placed in receivership for rehabilitation on Jan. 19. Vanguard had already announced that it stopped writing new coverage in early January and would not write renewal coverage after April 19, 2007. As a result of the liquidation order, signed Thursday, all existing Vanguard homeowner policies will be cancelled at 12:01 a.m. on April 25, 2007.

Questions relating to current Vanguard policy, coverage and claim issues should be directed to Vanguard Fire & Casualty Company at (866) 830-6423. Policy-related questions should continue to be directed to Vanguard Fire & Casualty Company at (866) 830-6423. Effective today, however, claimants who need to check on the status of an existing claim, or report a new claim, should call the Florida Insurance Guaranty Association at (866) 928-4310. For any other questions, consumers can call the Florida Department of Financial Services at (800) 882-3054.
 

© 2007 FLORIDA ASSOCIATION OF REALTORS®