The head of recently shuttered Florida Specialty Insurance Co. says that claims by Florida’s insurance regulator that the company is insolvent are untrue.
The company’s CEO, Susan Patschak, argues Florida’s Office of Insurance Regulation liquidation and receivership order should be reversed and Florida Specialty instead should be placed into rehabilitation so its 90,000-plus policyholders can be given more time to find a new insurer.
However, policies are already being shifted to the private market or the state-run insurer of last resort and sources say it is unlikely that the process will be halted.
In an affidavit filed Oct. 8 in Leon County, Fla., Second Judicial Circuit Court, Florida Specialty Patschak disputes several allegations put forth by the Florida OIR, including that Florida Specialty engaged in “willful violations of the law,” and insists that the company is in fact solvent.
“With direct knowledge of the facts in this matter, I am compelled to provide facts to correct the OIR affidavit so that, to the extent required, the petition and resulting Order are founded upon accurate information,” the affidavit states.
Patschak claims the facts show that Florida Specialty was not insolvent as alleged by OIR and the company didn’t willfully violate Florida law or consent to the facts “developed for purposes of supporting the Petition or a finding of ‘insolvency.’”
She has requested that the court require the Florida Department of Financial Services to reconsider its petition…