Florida doctors will shell out more in insurance premiums due to the liquidation of St. Johns Insurance Company.
On March 8, 2022, the Florida Insurance Guaranty Association (FIGA) Board of Directors approved a 1.3% assessment on its members. The new assessment is being levied to cover the cost of claims relating to St Johns Insurance Company, whose liquidation was ordered by the Second Judicial Circuit Court in Leon County, Florida on February 25, 2022. With more than 204,600 policies statewide as recently as 2019, Orlando-based St Johns was one of the 10 largest insurance companies in Florida.
The assessment is expected to raise $190 million to cover any claims or litigation related to the now-liquidated St. Johns Insurance Co.
The Florida Insurance Guaranty Association was formed in 1970 to oversee claims of insolvent property and casualty companies. When an insurance company fails, another insurance company will usually take over its policies through the end of their terms (in this case Tampa-based Slide Insurance Company), however, FIGA will cover the cost of any claims filed before the takeover.
According to FIGA, the non-profit corporation’s members are “all Florida licensed direct writers of property or casualty insurance…In the event of insolvency, member company claims for covered lines of business are eligible for FIGA coverage. Surplus lines insurers are not member companies and are not eligible for FIGA coverage. FIGA membership can be determined using the company search function on the OIR website and confirming the company authorization type is “Certificate of Authority”.
This 1.3% assessment is the second assessment from FIGA in the last year. In October 2021, FIGA levied a .07% assessment to cover the costs of failed insurance companies Gulfstream Insurance and American Capital Assurance Corp.
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