State seeks to close three Poe insurers.

State seeks to close three Poe insurers.
TALAHASSEE — Regulators seek to immediately shut down three struggling insurance companies, saying their financial condition is worse than previously reported.The Department of Financial Services seeks to close all three subsidiaries of the Poe Financial Group, the state's third-largest property insurer.
In petitions filed Monday and Tuesday in Leon County court, the agency asks that Southern Family and Atlantic Preferred be immediately liquidated and that Florida Preferred be put under state control to be liquidated on June 2.If a judge agrees, almost 12,000 Poe customers with existing hurricane claims would have to try to collect their money from the state insolvency fund.
More than 320,000 policyholders must find new coverage before the start of hurricane season."These insurance companies have not presented a viable plan to get back on their feet financially," said Florida Chief Financial Officer Tom Gallagher. "Our focus now needs to be getting outstanding hurricane claims paid as quickly as possible."Details are being worked out on plans to shift coverage for those home and condominium owners into Citizens Property Insurance, the state-run insurer of last resort, a move that must also be court approved.
"We don't need to leave policyholders vulnerable at all," said Department of Financial Services spokeswoman Tami Torres.According to the court filings, the Poe companies don't have the money to cover $240 million in hurricane claims. Actuaries warn the insolvency could swell to $392 million.
The Florida Insurance Guaranty Association has about $48 million that isn't committed elsewhere. To raise cash, the association would have to raise money that would be paid back with charges on consumer insurance bills.Financial records show the Poe insurance companies first failed to meet capital requirements shortly after the four-storm 2004 hurricane season.