Florida Regulators: Execs of Bankrupt Insurers Illegally Took New Roles

Insurers could lose their right to sell policies in the state if they retain leaders in question.

Chris Schafer
Written byChris Schafer
Chris Schafer
Chris SchaferSenior Editor
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

Featured in

media logomedia logomedia logomedia logo
Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

Featured in

media logomedia logomedia logo
MacKenzie Korris
Reviewed byMacKenzie Korris
MacKenzie Korris
MacKenzie KorrisInsurance Copy Editor

MacKenzie Korris is an insurance copy editor with years of experience in print and digital media. He strives to craft actionable, inclusive copy that fosters smart decision-making through reader autonomy. He has a journalism degree from Saint Louis University.

Published June 27, 2024 at 12:00 PM PDT | Reading time: 2 minutes

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

Table of contents

Table of contentsexpand/collapse

Florida law bars executive officers and directors who’ve worked for now-insolvent insurance companies from taking similar roles in the state’s industry. But a number of insurers are ignoring the so-called “no-fly” rule that took effect in 2002, the Tampa Bay Times reports.

Industry executives have flocked to new roles, and now the state’s insurance commissioner is cracking down.

Executive movement is common, but the state says no more

Authorities from the state’s Office of Insurance Regulation (OIR) report they’ve found 19 instances of executives who previously worked for now-insolvent insurers holding similar posts in other companies, the newspaper says. This list includes one former CEO, three former chief financial officers, and one general counsel, among others.

Holding such a role is a violation of Florida law unless the parties are able to demonstrate their “personal actions or omissions were not a significant contributing cause to the insolvency.”

OIR Commissioner Mike Yaworsky and his department told the Bay Times that it remains “serious about enforcing the law.” His office has sent letters to each of the companies employing these executives, letting them know they’re in violation of Florida law.

The letters threaten to revoke each company’s ability to write policies in the state if the individuals in question don’t step down, according to the Bay Times.

Officials must submit a detailed written statement that explains their former company’s insolvency, their own responsibilities at the company, and how those responsibilities didn’t lead to the insolvency, in order to be cleared.

Insurers have filed 22 waiver requests with the OIR on behalf of the executives. The office has decided on just two.

What’s next? Risking further chaos in the market

If regulators bar any of the insurers in question from selling additional policies, it could further shake up an already volatile Florida insurance market.

Since 2017, a total of 11 Florida insurers have gone into liquidation, with five more doing so since 2022. Policyholders statewide have paid state-mandated assessments to help pay claims that were once the responsibility of the now-failed insurers.

But Florida’s shrinking market isn’t confined solely to liquidated insurers. Insurers like Farmers, Bankers Insurance, and AIG subsidiary Lexington Insurance have all withdrawn from the state, and AAA has chosen to non-renew certain high-risk policies.

At the same time, the average home insurance rate in Florida was $10,996 in 2023 — the highest in the nation — and Insurify data forecasts it to climb by 7%, to $11,759, in 2024.

But good news could be on the way. The OIR recently allowed 13 companies to take on more than 350,000 policies from Citizens Insurance Corporation, the state’s insurer of last resort.

The OIR also approved eight new companies to enter the market, including Ovation Home Insurance Exchange, Manatee Insurance Exchange, Condo Owners Reciprocal Exchange, Orange Insurance Exchange, Orion180 Select Insurance Co., Orion180 Insurance Co., Mainsail Insurance Co., and Tailrow Insurance Company.

Nine other home insurers recently filed for rate decreases with the OIR.


Chris Schafer
Chris SchaferSenior Editor

Chris is Insurify’s Senior Editor for home insurance. He’s a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more. He is passionate about breaking down complex subject material to make important information accessible to everyone. 

Chris began his career as a journalist, managing two weekly newspapers, then moving into marketing and content marketing roles. Before joining Insurify, Chris served as the content strategy manager at Siteimprove and as the content manager at Brandpoint, where he managed a team of content creators. 

Away from work, Chris is an active hockey player and proud father of two rambunctious little girls. Chris holds a Bachelor’s degree in English with a minor in mass communications from the University of Minnesota. 

Evelyn Pimplaskar
Edited byEvelyn PimplaskarEditor-in-Chief, Director of Content
Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

Featured in

media logomedia logomedia logo
MacKenzie Korris
Reviewed byMacKenzie KorrisInsurance Copy Editor
MacKenzie Korris
MacKenzie KorrisInsurance Copy Editor

MacKenzie Korris is an insurance copy editor with years of experience in print and digital media. He strives to craft actionable, inclusive copy that fosters smart decision-making through reader autonomy. He has a journalism degree from Saint Louis University.