The Insurance Journal is reporting that the State of Florida is taking insolvency action against two South Florida insurance companies. The State has suspended the license of Seminole Casualty Ins. Co. to do business in Florida and has moved AequiCap Insurance Co. into liquidation.
AequiCap, based in Ft. Lauderdale was originally taken over the State last month when its books showed that its liabilities were more than its assets. AequiCap primarily provides Workers' Compensation coverage but also wrote a small number of commercial automobile policies. Apparently, the State is attempting the sell AequiCap's existing policies to another insurance company.
Seminole Casualty is an automobile insurance company based in Sunrise, Florida. State officials discovered that Seminole Casualty had $25.8 million in assets, but over $31 million in liabilities. As a result, the State took Seminole Casualty's license. The company must somehow generate at least $5 million in capital, or face liquidation.
There was no mention in the story regarding how these companies found themselves owing more money than they had in assets — whether is was due to mismanagement, bad investments, or the like. There was also no mention regarding what kind of salaries or benefit packages company executives enjoyed while their companies continued to veer toward insolvency.
If you have any questions regarding automobile insurance, call Orlando accident attorney Kim Cullen at 407-644-4444.
