Regulators order comp insurer into liquidation

Despite efforts by regulators, AequiCap Insurance Co. lacked the financial resources for a successful rehabilitation. With those words, the Florida Department of Financial Services ordered the company into liquidation.

AequiCap was ordered into receivership for purposes or rehabilitation by the Second Judicial Circuit Court in Leon County, Fla., in February. The liquidation announcement was made March 7 with policies being canceled as of April 6.

The company provided workers' comp and commercial auto coverage and had 2,330 policies in force, according to regulators. It was also licensed in Georgia, Oklahoma, and South Carolina.

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Regulators said the Florida Workers' Compensation Insurance Guaranty Association will help pay outstanding claims for workers' comp policies with the amounts paid on claims limited to the amount of coverage provided by the policies. "However, Florida does not limit benefits paid to injured workers and pays 100 percent of the statutorily defined workers' comp benefits. For unearned premium claims, the FWCIGA's obligation is limited to $50,000 and covers only policies in force on the date of liquidation," according to documents on the DFS website.

The state guaranty associations for the additional three states are being activated to help pay outstanding claims there.

Read more at the WorkersComp Forum homepage.

March 31, 2011

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