Florida | CFO / DFS Regulatory Authority

 – DFS.(L)IB1 [624.307] Authority to PUBLISH Information to Floridians.

Like most organizations we’ll address in Licensing & CE, Florida’s Insurance Guarantee Association (FIGA) is a NON-Profit entity, NOT a state regulatory entity.  

After a court ordered liquidation goes into effect, the CFO’s Division of Rehabilitation and LIQUIDATION becomes responsible for identifying EVERY uncashed claim check Avatar has issued.   This information is turned over to F.I.G.A.

® FIGA reviews and processing active / unpaid policyholder claims. 

No policyowners were financially harmed in this example. Everyone with Avatar claim checks were paid… they’ll just need to file a proof of claim with Avatar’s RECEIVER – CFO Patronis. 

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® People with checks issued by Avatar should NOT attempt to deposit or cash it. Avatar checks will not clear, and banking fees will apply.

It’s not easy to inform 37,000 plus clients their insurer went bankrupt. Regardless, the DFS stays involved in all insurance matters until they are resolved. Sometimes the situation requires the muscle of an investigator. With insolvent insurers, administrative support is needed the most.

* When an insurance company goes bankrupt, policyholders who’ve pre-paid premiums (AND) have unpaid claims qualify as creditors. They are first in line to be paid from the liquidation process.

Now back to Bank of America.

BOA had EVERY reason to reject Avatar’s checks. Had they cashed them it would have led to and easy to foresee monetary loss. The easiest solution was to terminate their relationship with Avatar, reject their checks and let CFO Patronis sort it out.