Two Broward Insurance Companies Fold
Mar 31, 2011
The following article was published in the Sun Sentinel on March 31, 2011:
Two Broward Insurance Companies Fold
By Julie Patel
Two Broward County insurers were ordered this month to fold: AequiCap Insurance Co. in Fort Lauderdale and Seminole Casualty Insurance Co. in Tamarac.
AequiCap has 2,332 commercial automobile and workers compensation policies that will be canceled by April 6, according to the Department of Financial Services. Seminole had about 41,000 policies in Florida as of February, mostly covering personal drivers with some covering business automobiles or contractors liability.
Policyholders of both companies have until March of next year to file claims.
Seminole was licensed in Florida in 1988 and is licensed in eight states, but primarily sold policies in Florida and Maryland.
AequiCap, formerly called Transportation Casualty Insurance Co., was licensed in four states.
The Second Judicial Circuit Court in Leon County tried to have AequiCap reorganize, but after a deeper review, “It became clear that the company lacked the financial resources for a successful rehabilitation,” according to DFS.
Phil Morgaman, owner and co-founder of the company, said the insurer asked to go into receivership for several reasons: high claims-related costs for its trucking department, a reinsurer lost funding and loss of business during the recession.
Morgaman said he’s still involved with an insurance agency, Insurance Group Services in Fort Lauderdale.DFS spokeswoman Alexis Lambert said the agency conducts forensic audits of insurers that are liquidated to identify any potential criminal violations.
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