We knew this day was coming and it finally has. Homewise Preferred Insurance has been ordered to hand over all operations to the State of Florida. Kevin Atwater, Chief Financial Officer of the State of Florida apparently made the recommendation on August 25, 2011 to begin the delinquency proceedings. The Order itself is 17 pages long and discusses everything from who controls the finances, paying employees and vendors, who control assets and bank accounts to who is responsible for daily operations. The most unfortunate part for Homewise insureds is that they will most likely have to find new insurance soon. The ripples travel into the litigation world as part of the Order states that Homewise lawsuits must be stayed or placed into a holding pattern until the State determines if it can salvage Homewise or not. If Homewise can not be salavaged then it will cease operations and all existing claims will be finalized through the Florida Insurance Guaranty Association. Thus is really no surprise for anyone, it is just a shame that Homewise strung so many insureds along for such a long time without paying valid claims.
September 8, 2011 by Morgan Barfield