McCarty Recommends Delinquency Proceedings For St. Petersburg Health Insurer
TALLAHASSEE (03/23/2007) - Insurance Commissioner Kevin McCarty advised Florida's Chief Financial Officer Alex Sink today that the Office of Insurance Regulation (Office) has determined grounds exist for the initiation of delinquency proceedings against Universal Health Care Insurance Company (UHCIC).
UHCIC had agreed to a Consent Order of Liquidation so that delinquency proceedings could be initiated by the Division of Rehabilitation and Liquidation, within the Department of Financial Services, if the company failed to come into compliance with the Florida's financial requirements by March 23, 2007. McCarty informed CFO Sink that the company has failed to increase its reserves to the level necessary to comply with the Florida Insurance Code and, based on the information provided by the company, is insolvent.
"This is one of the unfortunate aspects of our regulatory responsibilities, but we must protect the interests of the policyholders of this company," said McCarty. "We could not allow the company to continue to operate in an impaired financial condition." The Office has had financial examiners on site monitoring the finances of UHCIC during the period of the consent order, to assure the integrity of all company assets was maintained.