Windhaven Liquidation Information

Latest update 02/09/2020:

Windhaven Insurance Company ordered into Liquidation by the Circuit Court in Leon County, Florida at the request of the Florida Department of Financial Services.

The following information was authorized by the Florida Department of Financial Services for release on 01/06/2020 to all policyholders of Windhaven Insurance Company:

On December 12, 2019, Windhaven Insurance Company (“Windhaven”) was ordered into receivership for purposes of rehabilitation by the Second Judicial Circuit Court in and for Leon County, Florida. The Florida Department of Financial Services (“Department”) is the court appointed Receiver of Windhaven. On December 30, 2019, the Court entered an order liquidating Windhaven effective on January 6, 2020. A copy of the Windhaven liquidation order is available on the Department’s website: www.myfloridacfo.com/division/receiver/companies/windhaven/default.htm.

 

Here is the latest information regarding the Windhaven liquidation:

• ALL Windhaven Insurance Company policies have been cancelled effective 12:01 a.m. February 5, 2020 by Order of the Court, unless they were terminated prior to that date for any other cause.  This means if you were insured with Windhaven Insurance Company and have not yet replaced coverage with another carrier, you are now uninsured.

• The Florida Insurance Guaranty Association (“FIGA”) has been activated and will pay covered unearned premium claims, after the Department completes its processing of the policy records and sends the unearned premium records to FIGA. A $100 statutory deductible will be applied to any refund due.  If the amount of your refund is $100 or less, you will NOT receive a refund from FIGA.

• With the entry of the liquidation order, FIGA was also activated to pay outstanding claims for Windhaven policies. The processing and payment of pending covered claims will be made by FIGA (subject to the lesser of policy limits or FIGA’s maximum cap).  It is currently not known how long claims will be delayed while FIGA and the Department of Financial Services sort out the outstanding claim obligations of Windhaven Insurance Company.

• The deadline for filing claims in the Windhaven receivership is January 6, 2021. A policyholder may file a claim in the Windhaven receivership for the $100 statutory deductible which applies to the claim payments, for amounts over the FIGA coverage cap or for other claims not covered by FIGA.  Such amounts are not payable by FIGA and will become unsecured debts owed by the Windhaven Insurance Company in liquidation.  At this time (and the reason for the liquidation of the carrier) it appears that the Assets of Windhaven Insurance Company are not sufficient to pay the outstanding liabilities of the carrier, so these unsecured debts may not receive payment in the future.

• Information regarding the method for filing a claim in the receivership proceeding have not yet been announced, but once the forms are created and ready for submission it will be available on the Department’s website https://www.myfloridacfo.com/division/receiver/.  In addition, the receiver may attempt to contact you in the future to file any claim you may have, by sending claim forms to the address you have on file with the carrier.

 

If you were insured with the Windhaven Insurance Company, we recommend taking the following steps to protect yourself immediately:

  1. Immediately contact our office for the most up to date information available and a quote on replacement coverage.  Do not delay, as coverage lapsed on 02/05/2020 and you are currently uninsured.
  2. Immediately purchase replacement coverage for your Windhaven policy.  We have many options for you to move your account to another insurance carrier immediately to assure that any claims that occur are paid timely and without delay.  Continued operation of your vehicles without coverage subjects you to driver's license suspension, fines and penalties, and is a violation of Florida State law.  Windhaven Insurance Company is being liquidated by the Florida Department of Financial Services, and the State is fully aware of who was insured with the carrier on 02/05/2020 and will move to suspend your license if replacement coverage is not purchased immediately.
  3. Remain in contact with our office for the latest information on the status of the liquidation proceeding, including when to file a claim with the Department of Financial Services for any funds owed to you by Windhaven Insurance Company in liquidation.

If you continue to be insured with the Windhaven National Insurance Company (also known as Windhaven's Windward program with policy numbers beginning with WNW), here is the latest information and recommendations we advise taking to protect yourself immediately:

  1. Windhaven National Insurance Company (WNIC) policies remain in force at this time, however the carrier has been named in a legal action by the Florida Department of Financial Services seeking to revoke the carrier's authority to write insurance business in the State of Florida due to an insufficient asset to liability ratio.  WNIC has challenged this action and a hearing is now scheduled on March 18, 2020 by the Florida Department of Administrative Hearings in Miami to hear testimony on the case.
  2. The underwriting management company for the carrier and its claim management firm are named as affiliate companies of the now defunct Windhaven Insurance Company.  Said affiliates are under the jurisdictional control of the Florida Department of Financial Services as Receiver of Windhaven Insurance Company.  This means that service on your existing policy and claims made for coverage on that policy are being handled by firms now under control of the Florida Department of Financial Services.  It is not clear, due to the underlying insolvency of Windhaven Insurance Company and its liquidation, if these claims will be affected, but surely may be delayed as the liquidation of Windhaven Insurance Company continues to be undertaken.
  3. As the outcome of the pending revocation action against WNIC is not yet known, but with the underlying uncertainty in the ability to provide underwriting and claim services moving forward, we strongly recommend immediate replacement of your WNIC policy.  We can offer quotes and move your coverage to another carrier not involved in these matters immediately.  While a new down payment will be required, we can work with you to keep that down payment as low as possible.
  4. Immediately request that your EFT payments to Windhaven National Insurance Company be halted.  When contacting our office for replacement coverage, be sure to mention that your existing WNIC payments are scheduled on EFT so we can advise WNIC to stop taking money from your account.  To be certain that your EFT payments are stopped, act more than 5 business days before your next payment.  Once the payment is processed, it can NOT be stopped.  We can NOT stop EFT payments without your signature on a request to do so.  At this time, stop EFT orders received less than 5 days from the due date have not been processed in time to stop the EFT from occurring.  Of course, if the policy is replaced, we will send a cancel request to the carrier.  But, if that notice is received less than 5 days from your next payment due date, the payment may be processed creating a refund due to you by WNIC.  It is not clear if such refunds are being paid at this time, so we recommend you act more than 5 days PRIOR to your payment date.
  5. Do not delay your replacement.  While technically you remain insured with WNIC at this time, any claim filed may be delayed in payment.  To be protected from any such delays, replace your coverage immediately and pay no further premiums to WNIC.

Our team of insurance professionals have years of experience and have dealt with the liquidation of carriers in the past.  We can make this process as easy as possible for you.  For fastest service, contact our office immediately.  With tens of thousands of policy holders in Florida, the liquidation of Windhaven will cause a demand for new coverage in nearly every part of Florida.  Get ahead of the rush for coverage and call our office today.

January 5, 2020