In the world of insurance, the worst-case scenario is when an insurance company becomes insolvent. This means that the company is unable to pay its financial obligations, including claims from policyholders. Unfortunately, this is what happened to UPC Insurance, a Florida-based property and casualty insurance company.
UPC Insurance was placed into receivership by the Florida Department of Financial Services on February 2023. This means that the company’s assets were taken over by the state to protect policyholders and creditors. The Florida Insurance Guaranty Association (FIGA) was then activated to handle UPC’s claims.
FIGA is a non-profit organization that was created by the Florida Legislature in 1970 to protect policyholders in the event of an insurance company’s insolvency. It is funded by insurance companies licensed to do business in Florida, and its main purpose is to pay the outstanding claims of an insolvent insurer.
So, what does this mean for policyholders of UPC Insurance? First of all, they should know that FIGA will step in to handle their claims. Policyholders do not need to file a claim with FIGA; instead, FIGA will automatically assume responsibility for UPC’s claims. Policyholders should continue to work with their adjusters and provide any necessary documentation to ensure that their claims are processed as quickly and efficiently as possible.
However, there are limits to FIGA’s coverage. For example, FIGA only covers claims up to a certain amount, which varies depending on the type of claim. For property damage claims, FIGA’s coverage limit is $300,000 per claimant, while for personal injury claims, the limit is $300,000 per claimant. Policyholders with claims that exceed these limits may need to seek other forms of compensation.
It’s also worth noting that FIGA’s coverage only applies to policyholders with valid claims. If a policyholder’s claim is denied, FIGA will not step in to cover it. Additionally, FIGA’s coverage only applies to policies issued by UPC Insurance on or before the date of the company’s receivership. Policyholders who purchased policies after this date will not be covered by FIGA.
In conclusion, the insolvency of UPC Insurance is a challenging situation for its policyholders, but the activation of FIGA ensures that they will not be left without coverage for their claims. Policyholders should continue to work with their adjusters and provide any necessary documentation to ensure that their claims are processed as quickly as possible. While there are limits to FIGA’s coverage, policyholders can take comfort in knowing that they are not alone in this difficult time.
ADVICE:
If you opened a claim with UPC insurance, our team can help you get paid, we have handled multiple FIGA claims in the past and are confident we can assist you in these troubling times. Call me at (786) 818-942 or email me at Armando@CaliberAdjusters.com
