American Keystone ordered into receivership
South Florida Business Journal
A Leon County Circuit Court Judge has ordered American Keystone Insurance Co. into receivership.
The Ponte Vedra Beach-based company has about 7,800 policies in force in Florida, including homeowners, commercial, residential and wind policies.
The Florida Department of Financial Services has been appointed receiver.
Floridians who have insurance with American Keystone should contact their insurance agents, since all policies will be canceled, effective Nov. 8.
In June 2008, the company received state approval to assume up to 718 policies from Citizens Property Insurance Corp.
The Florida Office of Insurance Regulation said in a news release it has been monitoring American Keystone since November 2008. 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.
In its financial statement, the company’s surplus was $335,149 below the minimum $4 million required by law and would not have been able to meet its financial obligations as they come due.
“We worked with the company to resolve the outstanding issues,” Insurance Commissioner Kevin McCarty said in a news release. “However, when it became evident the issues could not be remedied, I had to take action to protect their policyholders.”
The company was licensed and began selling policies in 2007.