Court orders American Keystone Insurance Co. into Receivership
– A Circuit Court on Friday granted the Department of Financial Services’ (Department) petition for an Order
appointing the Department as receiver for the purposes of liquidating American Keystone Insurance Co. (American Keystone). Pursuant to state law, Insurance Commissioner Kevin McCarty last week sent a letter
to the Department stating that one or more grounds exist for the initiation of liquidation proceedings.
The Office of Insurance Regulation has been closely monitoring American Keystone since last November. Last month, American Keystone submitted its August financial statement which indicated the company was in an impaired state due to insufficient funds to pay private reinsurers and the Florida Hurricane Catastrophe Fund.
“We worked with the company to resolve the outstanding issues,” said Commissioner McCarty. “However, when it became evident the issues could not be remedied; I had to take action to protect their policyholders.”
The legislature created the Florida Insurance Guaranty Association (FIGA) as a safety net for policyholders with claims expected to be paid by an insolvent insurance company. Any American Keystone policyholder who has an outstanding claim should contact FIGA at 1-800-988-1450. Any other questions about billing or policy questions should be directed to American Keystone's customer service department at 1-877-350-9777. As of June 30, 2009, American Keystone had 7,618 personal and commercial residential policies in force.