American Keystone's approximately 5,500 homeowners' policies are due to be cancelled on November 8, 2009
Homeowners Choice’s wholly-owned insurance subsidiary, Homeowners Choice Property & Casualty Insurance, has been selected by the Florida Department of Financial Services as the replacement insurer for policyholders of American Keystone Insurance, which was placed into receivership by the Circuit Court in Leon County, Florida.
The Florida Department of Financial Services is the court-appointed receiver. On October 9, 2009, the Department had announced the plans to liquidate the company. All of American Keystone’s approximately 5,500 homeowners’ policies are scheduled for cancellation on November 8, 2009.
The Department has authorised Homeowners Choice to offer replacement coverage to those policyholders. Homeowners Choice will pay commissions to the Department for replacement policies that remain active for one year.
F. McCahill, chief executive officer of Homeowners Choice, said: Our replacement quote will be lower than the rate charged by Citizens for similar coverage. While it is unfortunate that American Keystone policy holders are in the position they are, we want to offer them a sound alternative.”
The website of the Florida Department of Financial Services says American Keystone’s policyholders will be entitled refunds for the unused portions of their policies. The refunds will be paid by the Florida Insurance Guaranty Association after the receiver completes it processing of the policy records.