Last updated July 1, 2022
Southern Fidelity 061522 Liquidation Order.pdf
Important Announcement - NOTICE TO AGENT OR BROKER.pdf
SCWHUA Southern Fidelity Producer FAQ.pdf
Are agents required to notify mortgage companies regarding policy cancellations effective July 15, 2022?
SC statute does NOT require agents to notify mortgage companies of the Southern Fidelity liquidation and policy cancellations. Agents may alert mortgage companies as a courtesy and/or service on behalf of their insured - but are not required to.
Does the liquidation of Southern Fidelity apply to flood policies?
No - flood policies written through Southern Fidelity are not affected by the liquidation order and will continue in force until their natural expiration date. At renewal, flood policies should be moved to another WYO carrier.
NOTICE TO AGENTS- POLICIES THAT EXPIRE JULY 10-14
The Florida Liquidator has indicated there may be a small set of policyholders that could have been eligible for a renewal quote, but did not receive [a] renewal quote. Do not assume ALL Southern Fidelity policies extend coverage through July 15.
Accordingly, the Liquidator “strongly recommends" to agents to replace coverage as of the expiration date for (1) policyholders that were not issued a renewal quote and (2) had an expiration date between July 10 and July 14.
What happened to Southern Fidelity Insurance?
Southern Fidelity Insurance agreed to an order of liquidation from the Florida Office of Insurance Regulation. As part of the liquidation order, ALL remaining active Southern Fidelity policies will be cancelled effective 12:01 a.m. on 07-15-2022.
Where can I get more information?
The Department of Rehabilitation & Liquidation in the Florida Office of Insurance Regulation is overseeing the liquidation – more info can be found at:
https://www.myfloridacfo.com/division/receiver/companies/detail/559
How do I report a new property and casualty 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
Who do I contact regarding existing SFIC Claims?
Contact the South Carolina Guaranty Association at 803-799-1560 and follow the prompts to reach a claims examiner.
Will insureds get their unearned premium back?
Yes – the South Carolina Guaranty Association will refund unearned premium back to insureds less $100 as required by state law.
Does the insured have to make a claim for unearned premium?
No – insureds/agents do NOT need to file a claim for unearned premium. Sometime after July 15, 2022, the Florida Department of Insurance will provide the South Carolina Guaranty Association with policy cancellation status and return premium information. Refund checks will be automatically processed to insureds by the SC Guaranty Fund.
When will insureds receive refund checks?
Unsure – the timetable for processing refunds depends on several factors – all of which have very fluid timelines. As soon as the South Carolina Guaranty Association receives the data, they will start processing the checks.
Will agents owe unearned commission back to Southern Fidelity?
Yes – agents will receive notices from the Florida Department of Insurance (or their liquidation office) with information and instructions on how to return commission from unearned premiums.
What is the status of current Southern Fidelity policies?
ALL Southern Fidelity policies will cancel effective 07-15-2022 unless they are cancelled earlier by the insured/agent.
Is another company taking over the Southern Fidelity policies?
No – As of this posting, there is no plan for another company to assume or transfer the remaining Southern Fidelity policies.
Should I wait until 07-15-2022 to replace a Southern Fidelity policy?
No – agents should work as quickly as possible to replace all current Southern Fidelity policies. There is no advantage to waiting -and several risks. Placing the policies with new carriers during hurricane season could be a challenge. For risks that are insured for more than $300,000, agents should be aware of the $300,000 per claim limit in the SC Guaranty Association.
Do I report policy cancellations to Southern Fidelity?
Yes – it is important to continue updating policy status with Southern Fidelity including policy cancellations prior to July 15, 2022.
What notification is required from the agent to insureds that do not get repalcement coverage before July 15, 2022?
Agents are required to provide a written notice of the receivership, by registered or certified mail, or by email with delivery receipt required, within 15 days of your notification, to the last known address of policyholders whose policy has not been replaced or reinsured with a solvent authorized insurer. The letter must contain name and address of the insurer, the name and
address of the agent, identification of the policy impaired, and the nature of
the impairment including termination of coverage. Click here for a sample letter. This letter will need to be customized by the agency.
What is the statutory language that agents must adhere to?
SECTION 38-27-420. Duties of agents.
(a) Every person who receives notice in the form prescribed in Section 38-27-410 that an insurer which he represents as an agent is the subject of a liquidation order shall within fifteen days of the notice give notice of the liquidation order. The notice must be sent by first class mail to the last address contained in the agent's records to each policyholder or other person named in any policy issued through the agent by the insurer, if he has a record of the address of the policyholder or other person. A policy is considered issued through an agent if the agent has a property interest in the expiration of the policy, or if the agent has had in his possession a copy of the declarations of the policy at any time during the life of the policy, except where the ownership of the expiration of the policy has been transferred to another. The written notice shall include the name and address of the insurer, the name and address of the agent, identification of the policy impaired, and the nature of the impairment including termination of coverage, as described in Section 38-27-380. Notice by a general agent satisfies the notice requirement for any agents under contract to him. Each agent obligated to give notice under this section shall file a report of compliance with the liquidator.
This information has been prepared by the staff of Independent Insurance Agents & Brokers of South Carolina to assist agents that are handling Southern Fidelity Insurance policies. This information is not intended as legal advice and is subject to change. Information will be added/updated as needed.