COLUMBIA, S.C. (AFX) - South Carolina is taking a closer look at an insurance company Florida regulators are now overseeing after it ran into financial problems.
Florida Select Insurance Co. was put into rehabilitation to deal with financial problems. In rehabilitation, regulators manage a company's assets so it can continue operating.
The Florida Insurance Department's action does not force the company to cancel policies or discontinue writing new ones.
According to the South Carolina Insurance Department, Florida Select had $8.4 million in homeowners insurance policies in effect in 2004. That ranked the company as 17th in the state in market share.
South Carolina Insurance Department director Eleanor Kitzman says the state will work closely with Florida regulators to make sure policyholders here 'are treated fairly and equitably.' Kitzman said South Carolina will conduct its own investigation and analysis on Florida Select to make sure the state's consumers are protected.
'There has been no finding of insolvency, so we have no reason to believe that Florida Select will be unable to pay its claims at this time,' Kitzman said. A state guarantee fund also protects policyholders, she said.
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