Florida regulators impose $2.07 million in penalties on eight insurance companies.

Florida’s Office of Insurance Regulation has fined eight property casualty companies, including three local ones, more than $2 million for the firms’ handling of claims, and more fines could be on the way.

These fines follow examinations conducted by the state’s Market Conduct Unit, which uncovered significant issues regarding how these companies managed claims for clients affected by hurricanes Ian in 2022 and Idalia in 2023.

Currently, two examinations remain pending.

A total of 10 companies were reviewed, with eight found to have “several findings of misconduct for business practices” related to the two hurricanes.

Among them, three are based locally: St. Petersburg’s American Coastal Insurance Co. ($400,000 fine), St. Petersburg’s American Mobile Insurance Exchange ($400,000 fine), and Lakewood Ranch’s Centauri Specialty Insurance Co. ($100,000 fine). Ocala’s TypTap Insurance Co., a subsidiary of Tampa’s HCI Group, was fined $150,000.

None of the three local companies responded to requests for comment.

The findings against the eight insurers included issues such as the use of improperly appointed adjusters, delayed acknowledgment of claims, missing disclosure statements in damage estimates, failure to provide the Homeowners Claims Bill of Rights, and not paying interest when owed.

Notably, one company exhibited error rates exceeding 60% for Hurricane Ian and over 80% for Hurricane Idalia due to missing disclosure statements. In multiple cases, companies failed to pay or officially deny claims within the mandated 90 days.

This enforcement is part of the insurance reforms implemented in recent years, designed to stabilize Florida’s property insurance marketplace, enhancing regulatory authority and compliance mechanisms.

In Fiscal 2023-2024, the Market Conduct Unit recovered $8 million in restitution and issued over $2.8 million in fines. In the first quarter of this year alone, they secured $660,450 in restitution.

Florida’s insurance commissioner, Mike Yaworsky, emphasized readiness to deploy OIR examiners to ensure effective claims management is in place.

“We will be monitoring any company with previous performance issues very closely,” Yaworsky stated.

Importantly, OIR clarified that fines imposed on these companies do not translate into increased insurance rates for policyholders.

Key Information

• Total Fines Imposed: Over $2 million on eight property casualty companies.
• Includes three local firms: American Coastal Insurance Co. ($400,000), American Mobile Insurance Exchange ($400,000), and Centauri Specialty Insurance Co. ($100,000).
• Examination Findings: Issues include improper adjusters, delayed claims acknowledgment, missing disclosure statements, and inadequate claim processing.
• Future Oversight: OIR will continue monitoring companies with previous misconduct.
• No Impact on Policyholder Rates: Fines assessed will not affect insurance rates for consumers.