FedNat Insurance Company was ordered liquidated on September 27, 2022.
All FedNat policies will cancel no later than October 27, 2022. Continue reading for transition plan.
FedNat policyholders have been offered replacement coverage through SureChoice Underwriters Reciprocal Exchange through novation (the substitution of a new contract in place of an old one). Policyholders that accept (by signing and returning the agreement) the SureChoice novation prior to October 27, 2022 are NOT affected by the FedNat liquidation.
FedNat policyholders in South Carolina that have not accepted the SureChoice novation will be cancelled on October 27, 2022 and immediately replaced by SureChoice. There will be no gaps in coverage and the policyholders' coverage and policy premium will be identical before and after the transition. Policyholders will receive a letter from SureChoice that explains this transition process.
FAQ's
What happened to FedNat Insurance Company (FedNat)?
On September 27,2022, FedNat was ordered liquidated by the Circuit Court in Leon County, Florida. The Florida Office of Insurance Regulation (Department) is the court appointed Receiver of FedNat. A copy of the Liquidation Order is available on the Department's website, www.myfloridacfo.com/Division/Receiver.
Impact to South Carolina Policyholders
Prior to liquidation, FedNat entered into an Assumption Reinsurance Agreement with SureChoice Underwriters Reciprocal Exchange (“SureChoice") whereby SureChoice would offer replacement coverage through novation for FedNat policyholders in the above states as of July 1, 2022. Policyholders who have accepted the SureChoice novation prior to liquidation; or those who accept novation prior to October 27, 2022, are not affected by the FedNat liquidation.
FedNat policyholders which have not accepted the SureChoice novation will be cancelled on October 27, 2022, at 12:01 am. These policyholders will be subject to the Transition Plan described below.
What is the FedNat to SureChoice Transition Plan?
The Department has entered into a Transition Plan with SureChoice Underwriters Reciprocal Exchange (“SureChoice"), whereby SureChoice will provide replacement insurance coverage to all non-novated South Carolina policyholders. Highlights of the Transition Plan include the following:
- Under the Transition Plan, as approved by the court, FedNat policies will be canceled on October 27, 2022, at 12:01 a.m. and immediately replaced by SureChoice. There will be no gaps in coverage and the policyholders' coverage and premium policy will be identical before and after the transition.
- Under the Transition Plan, a letter will be sent to your clients by SureChoice that will clearly explain the transition process.
Should FedNat policyholders get an insurance policy with another company?
Policies have either already transitioned to SureChoice through a novation prior to liquidation; or policyholders may still accept novation prior to October 27, 2022, and therefore are not affected by the FedNat liquidation. If policyholders do not wish to accept the coverage with SureChoice then an insurance agent is best able to advise policyholders as to their insurance options.
What happened to insurance premiums paid to FedNat?
Under the Transition Plan, any unearned premium due back from FedNat will be payable by SureChoice. To ensure continuing coverage under transition policies with SureChoice, future premium payments should be remitted to SureChoice. For questions contact SureChoice directly as follows:
SureChoice Underwriters Reciprocal Exchange
Customer Service: 877-304-4785
What do I need to do if I have an uncashed check from FedNat?
Please do not attempt to negotiate uncashed check(s). FedNat's financial condition has necessitated the freezing of its bank account effective immediately. As a result, DO NOT deposit any FedNat check(s) in your possession. Depositing a check after the freezing of the bank accounts may result in you being assessed fines or penalties by your bank which are not reimbursable.
If your check is for damages regarding a loss claim, your information will be forwarded to the South Carolina Property & Casualty Insurance Association for consideration. If the check is for claims expenses (legal fees, appraisers, adjusters, etc.), the Department will send you a proof of claim form.
If the check is for an unearned premium refund, your information will be forwarded to the Association for consideration.
For assistance with non-cashed checks, you should contact FedNat directly at 1-800-293-2532.
How do I report a new property and casualty claim?
1) For losses incurred prior to 12:01 a.m. July 1, 2022
With the entry of the Liquidation Order, the South Carolina Guaranty Association was activated to help pay outstanding claims for FedNat policies.
The Department is currently gathering claim files and claim data to forward the information to the Association. As a result, there will be a slight delay in claim processing during this transitional period. Please continue to contact FedNat using the contact information below to check the status of an existing claim or to file a new claim incurred prior to July 1, 2022. The Department's website, www.myfloridacfo.com/division/receiver, will be updated as appropriate regarding the claim transfer process.
2) For losses incurred on or after July 1, 2022
The South Carolina Guaranty Association will not pay any claims occurring on or after 12:01 a.m. on July 1, 2022, for FedNat policyholders whose policies were assumed/transitioned to SureChoice.
SureChoice Underwriters Reciprocal Exchange – Direct Contact Information:
Customer Service:1-888-346-6907 (9:00 a.m. – 6:00 p.m., Monday through Friday)
Who do I contact regarding existing FedNat Policies or Claims?
Until further notice, policyholders with questions regarding FedNat should continue to visit the company's website at https://www.fednat.com/ or contact the company directly as follows:
FedNat Insurance Company – Direct Contact Information:
Underwriting Customer Service: 1-954-308-1200
Claims: 1-800-293-2532
Flood Customer Service: 1-800-219-3102
Flood Claims: 1-800-759-8656
THE DEADLINE FOR FILING CLAIMS IN THE FEDNAT RECEIVERSHIP IS SEPTEMBER 27,2023
I have flood insurance with FedNat. What is the status of my insurance policy?
Your flood policy is still active. You may contact National Flood Services with any policy or claims related inquiries.
Flood Customer Service - 1-800-219-3102
Flood Claims - 1-800-759-8656
Where can I get more information?
The Florida Department of Financial Services has been appointed Receiver of the liquidation. You may email the receiver at consumer.services@myfloridacfo.com or by calling (800) 882-3054.
You can also visit the website for the Rehabilitation & Liquidation Division of the Florida Division of Financial Services at https://myfloridacfo.com/division/receiver/companies/detail/562
How do I contact the South Carolina Property & Casualty Insurance Association?
Contact the South Carolina Guaranty Association at 803-799-1560 and follow the prompts to reach a claims examiner.