The Florida Office of Insurance Regulation (OIR) has requested a judge to place FedNat Insurance into receivership, citing the insurer’s precarious financial situation.
The Sunrise, FL-based FedNat is estimated to have about 1,500 open claims in another state, Louisiana. Its referral to Florida receivership would indirectly make FedNat the ninth insurer with policies in Louisiana to go under following the devastating storms that rocked the state in 2020.
The Advocate reported that the OIR moved to shutter FedNat on September 23. The regulator gave clarification that its referral of FedNat to receivership would not affect Florida policyholders.