Dear valued customers,
We regret to inform you that UPC Insurance, a property-casualty insurer based in Florida, has been declared insolvent and is set to undergo liquidation. This development was made public through a consent order released on February 17, 2023.
As of last summer, UPC Insurance had over 151,000 policies in force across six states, including New York. The insurer was under the supervision of the Florida Office of Insurance Regulation (OIR) pursuant to a runoff plan agreed to by the insurer and the OIR in December 2022. The plan was for UPC to remain solvent while making an orderly exit from its markets.
However, according to an affidavit signed by Virginia A. Christy, the OIR’s director of property & casualty financial oversight, UPC’s policyholder surplus at the end of 2022 was negative $217,603,217, indicating that almost $218 million in losses would remain unpaid if the company sold all its assets as of December 31, 2022.
Following this development, UPC Insurance signed a consent order on February 8, 2023, agreeing to the appointment of the Florida Department of Financial Services (DFS) as receiver “for purposes of Rehabilitation or Liquidation.” Once the DFS is formally appointed by a state court and approves a liquidation plan, the process will begin.
It is important to note that under a prior consent order, UPC was under court orders to cancel all policies by May 31, 2023. We are unclear whether the Florida DFS will seek to have that date moved up.
According to a report in Insurance Journal, the Florida Insurance Guaranty Association will handle as many as 20,000 claims resulting from the liquidation.
If you are a current policyholder with UPC Insurance, we strongly advise you to secure new coverage immediately with a company that has adequate financial resources to service future claims. Our team at Silverline Insurance is ready to help you find the best insurance policy for your needs.
Please schedule an appointment to speak with an experienced member of our staff if you have additional questions about the UPC liquidation/insolvency. We are committed to providing you with the information and resources you need to make informed decisions about your insurance coverage.
Sincerely,
The Silverline Insurance Team