Poe Insurance Group Liquidation Update 6/15/06

Jan 12, 2007

This morning Judge Janet Ferris agreed to accept an amended Liquidation Plan making a very minor clarification in the plans approved for Southern Family Insurance Company, Atlantic Preferred Insurance Company and Florida Preferred Insurance Company. The clarification will specifically state that Citizens Property Insurance Corporation (“Citizens”) has determined that it will not utilize the services of Poe Financial Group’s affiliate companies during the liquidation. Counsel for two affiliate companies of Poe Financial Group, Poe & Associates and Poe Insurance Managers, petitioned the court to change the existing Liquidation Plan and corresponding order to allow and/or require Citizens to utilize the agents in those companies when Citizens assumes the policies. After much debate, Judge Ferris articulated her concerns that the extraordinary nature of these proceedings did not allow a great deal of time for the resolution of non-essential matters, and although she would approve an amended order containing this clarification, she was not making a determination of the legality of the existing provision contained in the order that stated Citizens would not use Poe’s affiliated companies in the liquidation proceedings.

In sum, the amended order will not direct Citizens to use Poe’s agents, but will merely state that Citizens has made the determination not to use Poe’s affiliate companies during the liquidation . This is the only modification to the Liquidation Plan, notwithstanding Poe’s widely publiced efforts to set the Liquidation Plan aside. We will circulate the amended Liquidation Plan and order once it is released.


Katherine A. Scott