Magnolia Insurance Ordered To Stop Writing New Business And Non-renew Existing Policies

March 22, 2010 - PRLog -- The Florida Office of Insurance Regulation has entered into a non-confidential consent order with Magnolia Insurance Company placing Magnolia into administrative supervision. The Order of Supervision, paragraph 9, states “Magnolia shall not write any new business and shall not renew business without the prior consent of the Office and without a full disclosure of the existence of this Order to the policyholder and the agent in advance of any renewal.”

This company has been placed into supervision because the Office finds it to be in an unsound condition. Magnolia is bound by the notice provisions of Section 627.4133, Florida Statutes to appropriately notice non-renewals. Policies that are slated to renew now and in the first few weeks of January 2010 could not be properly noticed for non-renewal by Magnolia and Magnolia will renew the policy if the policyholder or agents request renewal.

However, policyholders and agents should be aware that renewal with Magnolia is at your own risk and that of policyholders. Agents should seek to place any policy slated for renewal with another admitted carrier prior to the policy expiration date. Should you be unable to place with an admitted carrier, then you may resort to Citizens, assuming the application meets Citizens’ guidelines and requirements.

Best Rate Insurance is dedicated to helping current Magnolia policyholders find replacement coverage immediately, call us today for all of your options. For more information, please visit our website: http://www.bestrate-insurance.com/

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