North Pointe Casualty Insurance Company has agreed to offer replacement homeowners’ coverage to 60,000 Florida policyholders of American Superior Insurance Company according to Tom Gallagher, Florida’s Chief Financial Officer. American Superior went into state receivership in late September.
Second Judicial Circuit Judge Jonathan Sjostrom today approved a consent order locking in the agreement between North Pointe Casualty Insurance Company and American Superior. At the same time, Judge Sjostrom ordered American Superior into liquidation.
“I am disappointed that American Superior could not be rehabilitated,” said Gallagher, who oversees the Department of Financial Services. As receiver, the department has been overseeing the company’s operations since Sept. 29. “But I am very pleased that these homeowners, who already have experienced so much anxiety, can begin the New Year knowing they will have insurance coverage.”
North Pointe will begin sending out letters today to American Superior policyholders providing them with information about the replacement coverage offer. North Pointe said it would offer payment options to policyholders who may be unable to pay premiums in full at this time because of financial hardship brought on by the storms.
The liquidation order calls for American Superior policies to be cancelled on Jan. 14, 2005. The department, as receiver, has overseen the payment of more than $50 million on 10,400 hurricane-related American Superior claims. Beginning today, claims will be paid by the Florida Insurance Guaranty Association, which the Legislature created to cover claims when Florida-licensed insurance companies become insolvent.
North Pointe Casualty Insurance Company and affiliated company North Pointe Insurance Company are a part of the North Pointe group. North Pointe Casualty is licensed in Florida, Michigan, Nevada and Louisiana. North Pointe Casualty’s Florida office is located in Coral Gables.
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