Commissioner Mike Yaworsky Forces Troubled Company to Surrender Certificate of Authority
TALLAHASSEE, Fla.—Florida Insurance Commissioner Mike Yaworsky is forcing American Mobile Insurance Exchange to surrender the company’s COA after completing administrative supervision. The company received its COA in 2020 to write only mobile home business, exclusively in Florida. In addition to OIR determining that the company was in unsound financial condition, American Mobile threatened to redomesticate to other states. The company initiated conversations with regulators from other states to start this process; however, those state insurance departments declined to allow redomestication. Over the past few years, OIR remained concerned with company actions and strictly monitored the company. While under administrative supervision, OIR ensured an orderly wind-down of American Mobile’s liabilities, safeguarded assets, and protected the interests of subscribers and claimants.
Commissioner Mike Yaworsky said, “Florida continues to grow a full stable of well capitalized companies that are committed to our State and ready to help consumers pay claims. Evasive companies that cancel all their policies and want to redomesticate are not committed to Floridians and have no place in our State. Competition is booming in Florida, and the quality of service they provide to consumers is in the front of my mind.”
In November 2023, the company requested approval to pay $1 million in interest on a surplus note. OIR determined this payment would leave their surplus impaired and denied the request. A few months later, the company threatened to leave the state and take business to other state insurance departments. Around that same time, the company’s policyholder surplus dropped to $15.09 million from $20.98 million the year prior. In Florida, the minimum surplus requirement for companies licensed to write residential property is $15 million. In March 2024, the company submitted a withdrawal plan that included transferring approximately 8,000 policies to another company and canceled more than 1,100 policies effective May 31—right before the beginning of Hurricane Season. At that time, OIR placed the company under administrative supervision. While under supervision, OIR demanded the company have qualified and trained staff available to respond to policyholder inquiries about cancellations and provide OIR detailed customer service scripts for review and approval. OIR also required the company to issue unearned premium and unearned subscribers surplus contribution refunds to canceled policyholders.
OIR remains committed to ensuring that any additional liabilities that might arise from this company’s departure will be handled promptly and in accordance with Florida law.
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