Rehabilitation & Liquidation

Rehabilitation & Liquidation

SOUTHERN FIDELITY INSURANCE COMPANY

Company Information

Company Demographic Information
Name of Company:
SOUTHERN FIDELITY INSURANCE COMPANY
Case Number:2022-CA-001008
Guaranty Association:
Florida Insurance Guaranty Association(FIGA), South Carolina Insurance Guaranty Association (SCIGA), Louisiana Insurance Guaranty Association (LIGA), Mississippi Insurance Guaranty Association
Type of Coverage:
Property and Casualty
State of Domicile:
Florida
Status of Receivership:
Liquidation
Important Receivership Dates
Date of Rehabilitation:
N/A
Date of Liquidation:
June 15, 2022
Policy Cancellation Date:July 15, 2022
Claims Filing Deadline:
June 15, 2023
Objection Deadline:
See Below

Background Information
On June 15, 2022, Southern Fidelity Insurance Company ('SFIC") was ordered into receivership for purposes of liquidation by the Second Judicial Circuit Court in Leon County, Florida. The Florida Department of Financial Services is the court appointed Receiver of SFIC.

SFIC was a property and casualty insurance company located in Tallahassee, Florida.  The company was licensed in Florida in 2005, and authorized to write homeowners multiple peril, commercial multiple peril, inland marine, allied lines, fire, and other liability in Florida, Louisiana, Mississippi, and South Carolina.  The company had approximately 150,000 in-force policies at the time of receivership.

On September 8, 2020, Capitol Preferred Insurance Company, Inc. (“Capitol Preferred”) was merged with and into Southern Fidelity Insurance Company.  Southern Fidelity Insurance Company is the surviving company.  The former Capitol Preferred policies ARE included in the receivership.  


Frequently Asked Questions

Is my insurance policy still in force?
​Under the Receivership Order, all insurance policies, except for flood policies, issued by Southern Fidelity Insurance Company ("Southern Fidelity") in effect at the time of the issuance of the Order are cancelled effective 12:01 a.m. on July 15, 2022. 

With the exception of flood policies, there are no longer any Southern Fidelity or Capitol Preferred policies in effect.

On September 8, 2020, Capitol Preferred Insurance Company, Inc. (“Capitol Preferred”) was merged with and into Southern Fidelity Insurance Company.  Southern Fidelity Insurance Company is the surviving company, and therefore Capitol Preferred policies ARE included in the receivership.  The above cancellation applies.

Should I get an insurance policy with another company?

​Yes.  Your agent is best able to advise you as to your insurance options.  To assist your agent and you in this process, we have notified your agent directly of the cancellation of your policy.  

I have flood insurance with Southern Fidelity. What is the status of my insurance policy?
Your flood policy is still active.  You may contact National Flood Services at (800) 759-8656 with any policy or claims related inquiries.  

What do I need to do if I have an uncashed check from Southern Fidelity that is stale-dated?

​Please do not attempt to negotiate any stale-dated uncashed check(s), as they will be returned by the bank and may charge NSF fees.  For assistance with non-cashed checks, you may contact the Department by using the Contact Us form .  Someone from the Department will review your inquiry and contact you.  You may also contact the Department by calling (850) 413-3081 or toll free at 1-800- 882-3054.  Your inquiry will be directed to the appropriate staff member for review and handling.  

I received a “Notice to Policyholders”. Why did I receive this Notice?

​You received a Notice because your name appears as a current policyholder on the records of Southern Fidelity.  The Notice was sent to all known current policyholders informing them of the receivership.  See the Notices section of the Related Documents displayed in this website.

I received a “Notice to Agent or Broker”. Why did I receive this Notice?

​You received a Notice because our records indicate that you were an agent of Southern Fidelity.  The Notice was sent to all known agents of record informing them of the receivership.  See the Notices section of the Related Documents displayed in this website.

How will I get my unearned premium refund?

​Unearned premiums are covered by the Guaranty Associations and your state's Guaranty Association has been activated to help pay unearned premium refunds for Southern Fidelity policyholders.    The Department is currently gathering premium data to forward the information to the appropriate state's insurance guaranty association.  As a result, there will be a delay in premium processing during this transitional period.  The Department's website, www.myfloridacfo.com/division/receiver, will be updated once the transition is completed.     

Do I need to submit a Proof of Claim form to the Department in order to have my Return Premium claim processed?

​No.  The Department will not require Proof of Claim forms from policyholders who have a potential return premium claim in the estate of Southern Fidelity.  Potential claims include the return premium claims of policyholder claimants who had a policy in force on the date of liquidation and all other return premium claims who the department calculates are due return premium.  Policyholders do not need to do anything to file a timely claim for return premium or to have their claim accepted by the Department.

What is a Guaranty Association?
​A Guaranty Association ("GA") is a nonprofit corporation statutorily created to provide a mechanism for the payment of policy related loss claims and unearned premium when an insurance company is liquidated.  

For more information, you can find specific information about your state's Guaranty Association at:
Florida Insurance Guaranty Association - https://figafacts.com/
Louisiana Insurance Guaranty Association - https://www.laiga.org/
Mississippi Insurance Guaranty Association - https://ms-miga.com/
South Carolina Property and Casualty Insurance Guaranty Association - http://www.scguaranty.com/

If premium was paid directly from my mortgage company to Southern Fidelity, will the refund be returned to the mortgage company?

​Premium refunds will be sent directly to policyholders.

I have recently changed my name or mailing address and need to update the company’s records to make sure I receive any information mailed to me. What should I do?
​It is your responsibility to notify the Department, in writing, if there is a change in your name or mailing address. You can download the appropriate form and instructions from the Receiver's website, www.myfloridacfo.com/division/receiver. Click on the link titled “File a Name and/or Address Change" or click here to go directly to the information. 

When you are corresponding with the Department, be sure to reference the Company Name and your policy number and/or claim number which will allow the Receiver to associate your request with the correct Receivership.  

I filed a lawsuit against Southern Fidelity prior to their entry into liquidation. Why can't the lawsuit progress?

​Pursuant to the Receivership Order and to Section 631.041(1), Florida Statutes, there is an automatic stay in place prohibiting judicial and administrative proceedings against the company.

Who do I call for non-claims related questions?

​If you have any non-claims related questions regarding the receivership, please contact the Department at Consumer.Services@myfloridacfo.com or by calling (850) 413-3081 or toll free at 1-800-882-3054. 

How can I find out more information regarding the Liquidation of Southern Fidelity?

​The most up to date information is posted on the website.  The Department will continue to post information to its website as more information becomes available.

How do I contact the Florida Department of Financial Services which is the court-appointed Receiver of Southern Fidelity?
​You may contact the Department at one of the following:
Florida Department of Financial Services,
Receiver of Southern Fidelity Insurance Company
325 John Knox Road, Atrium Building, Suite 101
Tallahassee, FL 32303

How do I request a copy of a Southern Fidelity claim file and/or Southern Fidelity policy?
If you are the claimant, policyholder, or a claimant/policyholder's authorized representative, please complete the "Contact Us Form" and include your name, policy number, claim number, and date of loss, for your claim file/policy and the Receiver will provide a copy.
 
If you are not the claimant, policyholder, or the claimant/policyholder's authorized representative, you will need to serve a subpoena for the claim file/policy on the Department that includes the claimant/policyholder's name, the policy number, the claim number, and the date of loss:
  • By process server at the following address:
    Florida Department of Financial Services,
    Receiver of Southern Fidelity
    325 John Knox Road, Atrium Building, Suite 101
    Tallahassee, FL 32303
  • By certified mail at the following address:
    Florida Department of Financial Services,
    Receiver of Southern Fidelity
    325 John Knox Road, Atrium Building, Suite 101
    Tallahassee, FL 32303 

Am I allowed to submit a Civil Remedy Notice pursuant to the provisions of FS 624.155 that names Southern Fidelity after a petition for receivership has been filed?
​No. Pursuant to the receivership order and to Section 631.041(1), Florida Statutes, there is an automatic stay in place prohibiting the commencement or continuation of judicial, administrative or other action against the company.​

Claims Information

How do I check the status of an existing claim?
Until further notice, policyholders with questions regarding Southern Fidelity should continue to visit the company's website at https://www.southernfidelityins.com/ or contact the company directly as follows:

Customer Service:       1-866-874-7342
Claims:                         1-866-722-4995
Flood Claims:               1-800-759-8656

The Department is currently gathering claim files and claim data to forward the information to guaranty associations.  As a result, there may be a slight delay in claim processing during this transitional period.

How do I report a new claim?
​Until further notice, policyholders with questions regarding Southern Fidelity should continue to visit the company's website at https://www.southernfidelityins.com/ or contact the company directly as follows:

Customer Service:      1-866-874-7342
Claims:                        1-866-722-4995

Flood Claims:              1-800-759-8656

How do I file a claim against the estate of Southern Fidelity?

​Proof of Claim forms will be mailed to all known claimants in the estate.  A Proof of Claim form must be postmarked or submitted electronically by Claims Filing Deadline of June 15, 2023.

When is the deadline for filing a claim in the receivership?

​The deadline for filing claims in the Southern Fidelity receivership is June 15, 2023.  

How do I obtain a Proof of Claim form and filing instruction?

​The Department will be mailing Proof of Claim forms to insureds and/or claimants. The website will be updated once more information is available.

Can I file a Proof of Claim form in the Southern Fidelity estate after the filing deadline? Will it be considered late-filed?

​Yes, you may file a Proof of Claim form. However, any form postmarked after June 15, 2023 will be processed as late-filed.

Is there a Claims Bar Date?

​A Claims Bar Date has not been established.

​

If I have already filed a claim with Southern Fidelity, will the Receivership affect the status of my claim?

​No. Guaranty Associations have been activated to pay covered outstanding claims for Southern Fidelity policies. The Department is currently gathering claim files and claim data to forward the information to the appropriate state's insurance guaranty association.  As a result, there may be a slight delay in claim processing during this transitional period.  Please continue to contact Southern Fidelity using the contact information in the separate question below to check the status of an existing claim and/or to file a new claim.  The Department's website, www.myfloridacfo.com/division/receiver, will be updated once the transition is completed.   

Do I need to submit a Proof of Claim form to the Department in order to have the guaranty association make payments on my pending Southern Fidelity claim?

​No. The guaranty associations have access to the company claim files and will review your claim to determine if it is a covered claim on which payments may be due. If you are not certain that your claim is covered by the guaranty associations and/or you wish to make a claim directly against the Southern Fidelity receivership estate, you must submit a Department's Proof of Claim form to the Department.

Do I need to submit a Proof of Claim form to the Department in order to have my invoices for claim related expenses paid?

​Yes.  If you have unpaid invoices for services related to specific claim files (IME, copy charges, legal defense fees, damage estimation, appraisers, adjusting etc.) your claim is considered a General Creditor, Class 6 claim.  A guaranty association does not usually cover these. There may be insufficient assets to pay these types of claims, however, you must file a Department's Proof of Claim form to have your claims considered. These types of claims are most often considered Master Claims as they involve more than one invoice.

How and when do I submit my invoices for claim related expenses?

​If you have unpaid invoices for services related to specific claim files as described above, please submit them as supporting documentation with your Proof of Claim form.  Submission instructions will be provided on the Proof of Claim form.

Do I need to submit a Proof of Claim form to the Department in order to have my commissions (Agents) or General Creditor claims paid?

​Yes.  Agent's commission claims and general creditor claims are not covered by a guaranty association, but may be filed as claims in the receivership estate. There may not be sufficient assets to pay this priority of claims; however, you must file a Proof of Claim form to have your claim considered.

I am owed money for services provided before Southern Fidelity was ordered into liquidation. What is the procedure for payment of these claims?
​Claims which were not paid will be considered as claims against the estate and processed by the Receiver. 

Please complete a "Contact Us Form" and the Receiver will mail you a Proof-of-Claim form.

Why did I receive a Proof of Claim form?

​If you have received a Proof of Claim form, you have been identified as a potential claimant in the estate of Southern Fidelity.  Receiving a Proof of Claim form does not mean that you do have a claim in the Southern Fidelity estate, only that you were listed in the company records and could potentially have a claim.  Potential claimants can include loss claimants, policyholders, general creditors, agents, claims vendors etc.

How are claims paid in a receivership?

​The payment of claims in a receivership are paid in priority order as defined by Florida Statutes, Chapter 631. The only assets available for distribution are the assets of the company.

When will my claim be paid and how much will I receive?

​The amount of any potential payment is unknown until after the amount of all liabilities have been established and all reasonable efforts to recover and liquidate assets have been exhausted. Please be advised that it may take several years before a distribution of assets, if any, is made in this receivership, due to collection efforts and litigation.

Who do I contact for additional claims related questions?

​If you have additional claims related questions regarding the receivership, please contact the Department at Consumer.Services@myfloridacfo.com or by calling (850) 413-3081 or toll free at 1-800-882-3054.