State regulators took control of American Superior Insurance Company because the Plantation-based insurer was overwhelmed by homeowner’s claims following four hurricanes.
American Superior becomes the first insurer to buckle under the weight of hurricane-related claims. The company voluntarily consented to go into receivership after what it called “unprecedented storm losses.”
The Florida Department of Financial Services says the company has received about 7,000 storm-related claims in 53 Florida counties.
The company's premium volume was $34 million last year. That's less than one percent of the state's homeowner’s insurance market. It had about 60,000 homeowner policies. The state will take over its operations and process claims.
Officials say the company has a lot of cash on hand to pay claims, but it isn't known if it's enough to pay all the claims.