Preview
Filing# 167765186 E-Filed 03/01/2023 08:32:07 AM
IN THE CIRCUIT COURT OF THE 17TH
JUDICIAL CIRCUIT IN AND FOR
BROWARD COUNTY, FLORIDA
Case No.: CACE-21-010649
GLORIA H. OLIVERAS & JOSE
OLIVERAS,
Plaintiffs,
V
UNITED PROPERTY & CASUALTY
INSURANCE COMPANY,
Defendant.
I
NOTICE FOR MANDATORY STAY OF PROCEEDINGS
Defendant, UNITED PROPERTY & CASUALTY INSURANCE COMPANY ("UPC")
againstUPC. In
notifies the Court of the permanent, automatic stay as to litigation
respectfully
support thereof,Defendant would show as follows:
1. A Consent Order Appointing the Florida Department of Financial Services as
Receiver of UPC for purposes of Liquidation,Injunction,and Notice of Automatic Stay
("LiquidationOrder") was entered on February 27, 2023. (A true and correct copy of the
LiquidationOrder is attached hereto Exhibit A).
2. againstUPC. See Exhibit A
A permanent stay has been entered as to any litigation
and §631.041(1),Fla. Stat.
3 The Liquidation Order has also triggered the Florida Insurance Guaranty
Association Act, Fla. Stat. §631.50 et seq. In the event this is an action arisingout of a claim that
could be covered by the Florida Insurance Guaranty Association (FIGA), then a Motion to
*** FILED: BROWARD COUNTY, FL BRENDA D. FORMAN, CLERK 03/01/2023 08:32:06 AM.****
CASE NO.: CACE-21-010649
Substitute FIGA should be filed,togetherwith an Amended Complaint with claims and allegations
made againstFIGA, not UPC.
specifically
4. To the extent that the Plaintiff chooses to amend their Complaint and substitute
FIGA for UPC, the Florida Legislature's
statutory scheme creatingthe Florida Insurance Guaranty
Association mandates a mandatory minimum six month stay of proceedings under Fla. Stat.
§631.67, which states:
All proceedingsin which the insolvent insurer is a party or is obligatedto defend
a party in any court or before any quasi-judicial or administrative board in this
be stayed for 6 months, or such additional period from the date the
state shall
insolvency is adjudicatedby a court of competent jurisdictionto permit proper
defense by the association o f all pending causes o f action as to any covered claims;
provided that such stay may be extended for a periodoftime greater than 6 months
to a court of competent jurisdiction.
upon proper application
5. The minimum six month stay ofproceedings under Fla. Stat. §631.67 is mandatory.
Halili v. Radiation Oncology Consultants, P.A., 820 So.2d 415 (Fla.5th DCA 2002).
6. The mandatory minimum six month stay under Fla. Stat. §631.67 appliesnot only
to the individual party insured by the insolvent carrier,but it also appliesto the entire proceeding.
Martinez v. Iturbe,%13 So.2d. 266 (Fla.3rd DCA 2002).
7. The six month stay mandated by Fla. Stat. §631.67 represents a reasonable
restriction to access to the courts and is constitutional. Synder v.
Douglas, 647 So.2d 275 (Fla.2nd
DCA 1994).
WHEREFORE, Defendant, UPC, givesNotice to this Court and all partiesthat alllitigation
againstUPC is permanently stayed,and that FIGA is entitled to a mandatory six month stay of
proceedings,if it is to be substituted in this action.
CASE NO.: CACE-21-010649
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on thelst day of March, 2023, this document was filed using
the Florida Courts E-FilingPortal. This document is being served on all counsel and pro se parties
of record by the Florida Courts E-FilingPortal,pursuant to and in compliance with Fla. R. Jud.
Admin. 2.516. The electronic addresses are: Jamie Alvarez, Esq., Shield Law Group, P.A.,
jamie@shieldlawgp.com; legalservice@shieldlawgp.com; paralegal@shieldlawgp.com;
Attorney for Plaintiffs,Jose Oliveras and Gloria H. Oliveras; and to
UPCIC@myfloridacfo.com.
KELLEY KRONENBERG
/s/ StephanieT Merchant
Stephanie T Merchant, Esq.
Fla. Bar No.: 1007142
Steven L. Scharf, Esq.
Fla. Bar No.: 77781
sscharf@kelleykronenberg.com
10360 West State Road 84
Fort Lauderdale, FL 33324
Telephone: (954) 370-9970
Facsimile: (954) 382-1988
Attorneys for Jamie Alvarez, Esq., Shield Law
Group, P.A.
Address for service of pleadingsonly
com
slseservice@kelleykronenberg.
Filing# 167635273 E-Filed 02/27/2023 04:17:01 PM
IN THE CIRCUIT COURT OF THE SECOND JUDICIAL CIRCUIT,
IN AND FOR LEON COUNTY, FLORIDA
ex rel.,
State of Florida, the Department
of Financial Services of the State of Florida,
Relator
CASE NO.: 2023-CA-000320
VS.
& Insurance Company,
United Property Casualty
Respondent
SERVICES
CONSENT ORDER APPOINTING THE FLORIDA DEPARTMENT OF FINANCIAL
COMPANY FOR
AS RECEIVER OF UNITED PROPERTY & CASUALTY INSURANCE
PURPOSES OF LIOUIDATION, INJUNCTION, AND NOTICE OF AUTOMATIC STAY
Services
THIS CAUSE was considered on the Petitionofthe Florida Departmentof Financial
the DepartmentofFinancialServices as Receiver of
for a Consent Order appointing
("Department"),
of
United Property & for
CasualtyInsurance Company ("Respondent" "Company"), Purposes
or
The Court, having
"Petition").
and Notice of Automatic Stay (hereinafter,
Injunction,
Liquidation,
informed in the premises,
and otherwise beingfully
ofrecord,
reviewed and considered the pleadings
finds as follows:
a proceeding
delinquency
I. Section 631.021, Florida Statutes (2022),providesthat
constitutes the sole and exclusive method of liquidating,
pursuant to chapter631, Florida Statutes,
a Florida domiciled insurer.
or conserving
reorganizing,
rehabilitating,
over these and has
proceedings exclusive
2. This Court has jurisdiction
original
wherever located,including
property
over
jurisdiction all assets or property of the Respondent,
limits ofthe state. §§ Fla. Stat.
631.021(1),(6),
located outside the territorial
3. over any person requiredby section 63 I.391,
This Court can exercisejurisdiction
to cooperatewith the ("OIR")
Departmentand the Office of Insurance Regulation
Florida Statutes,
of law, section
by other provisions
to this Court's jurisdiction
and over all persons made subject
631.025,Florida Statutes. E-Filed and En@e-N-?.
FEB 2 7 2023
Page 1 of 19 byJAon
Stat.
Venue is proper in the Circuit Court of Leon County.§ 631.021(2),
Fla.
4.
or proper orders to carry out the
5. This Court is authorized to enter all necessary
Act, sections 631.001 et seq., Florida
Rehabilitation and Liquidation
purpose of the Florida Insurers
Statutes.
as a state of Florida domestic property and casualty
6. Respondentwas licensed by OIR
insurer authorized to transact insurance business in the state of Florida pursuant
to Chapter624, Part
lines of insurance:
authorizedto write in the following
is specifically
III,Florida Statutes.Respondent
(090) Inland Marine; (120)
Homeowners Multi-Peril;
(010) Fire; (020) Allied Lines; (040)
and (270) Boiler and Machinery.
(260) Burglaryand Theft;
Earthquake;(170) Other Liability
placeof business is located at: 800 2?d Ave South,St. Petersburg,
Florida.
principal
Respondent's
a delinquency
Upon a determination by OIR that one or more grounds
exist to initiate
7.
that a should be
proceeding
an insurer and upon OIR's determination
against
proceeding delinquency
of such delinquency
to refer the insurer to the Departmentfor the initiation
OIR is required
initiated,
Florida Statutes.
§ 631.031(1),
proceeding.
section Florida Statutes,
631.031(1),
8. By letterdated February16,2023, pursuant to
Jimmy
Chief Financial Officer,
Mark Yaworsky,Interim Commissioner of OIR, advised Florida's
Attached
Respondent.
against
that groundsexist for the initiation
Patronis, proceedings
of liquidation
to the letter was an affidavit from VirginiaA. Christy,OIR's Director of Property
& Casualty
which provided
FinancialOversight, by that Section.
the informationrequired
to
the Department this Court
petition
9. Section Florida Statutesempowers
631.031(2),
a domestic insurerupon notification from OIRthat grounds
itto
for a consent order directing liquidate
exist for the initiationofsuch The Departmentfinds that the affidavit and referral meet
proceedings.
of Section
the statutoryrequirements Florida Statutes.
631.031(1),
Page 2 of 19
the Department may applyfor such an
Pursuant to section 631.061,Florida Statutes,
10.
become insolvent or upon the existence of any of the grounds
order if the insurer is or is about to
in section 631.051,Florida
specified Statutes.
the Court has
in the DepartmenfsPetition,
11. Based on the evidence presented
of Respondentpursuant to the following
determined that sufficient groundsexist for the liquidation
of law:
provisions
a. Section Florida
631.061(1), Statutes in that Respondentis insolvent within the
meaning of section 631.OII(14).
b. Section Florida
631.051(11), Statutes in that Respondenthas consented,
as Receiver of
of the Department
to the appointment
througha Resolution of its board of directors,
for the purposes of liquidation.
Respondent
C. Section Florida
631.051(3), Statutes in that OIR has determined that
is hazardous creditors,
to its policyholders, and the
stockholders,
continued operation
Respondent's
public.
therefore finds that it in the best interests of Respondent,its
12. The Court is
receiver of
stockholders,
creditors, and the Public that the Departmentbe appointed
policyholders,
for purposes of liquidation.
Respondent
THEREFORE, IT IS ORDERED AND ADJUDGED:
13. The Departmentof Financial Services of the State of Florida shall be and is hereby
effective immediately upon the
receiver of Respondentfor purposes of liquidation,
appointed
entry of this Order.
Page 3 of 19
and
directors,
officers,
14. all the powers ofthe Respondent's
The Departmentis granted
and who have no of any kind
further authority
managers, all of who are discharged
permanently
over the affairsor assets of Respondent,
except as by the Department.
may be redelegated
Fla. Stat.
§ 631.141(10),
to direct and manage the affairs of Respondent,to
15. The Departmenthas full power
hire and and to deal with the propertyand business of the Respondent.
employees,
discharge
trustees,administrators,
agents and employees,and all other
16. All directors,
officers,
employed or
Respondentor currently
utilized by Respondentin connection
persons representing
forthwith,
with the conduct of its business are discharged however,the Departmentmay
provided,
Fla. Stat.
discretion.§
retain such persons in the Department's 631.141(10),
shall be defined in accordance with
17. For purposes ofthis Order,the term "affiliate"
section and
Florida Statutes, shall include,but not be limited to, the following
631.011(1),
Claims
affiliates:United Insurance HoldingCorp.;United Insurance Management L.C.;Skyway
Services LLC; AmCo HoldingCompany LLC; Interboro Insurance Company; UPC Re; Skyway
LLC.
LLC: Skyway TechnologyServices,
Reinsurance Services,LLC; Skyway LegalServices,
director, attorney,
trustee,administrator,
18. Any present or former officer, manager,
of
contractor,or affiliate
independent
agent, accountant, actuary,broker,employee,adjuster,
over, or
Respondentand any other person who possesses or possessedany executive authority
affairs or the affairs
who exercises or exercised any control over, any segment of Respondent's
shall be required
Persons")
of its affiliates("Controlling cooperate with the Department,
to fully
Florida Statutes. Any person who fails to cooperate with the
pursuant to section 631,391,
interfereswith the Department, or fails to follow the instructions ofthe Department,
Department,
be excluded business premises.
from the Respondent's
may, at the discretion,
Department's
Page 4 of 19
The Department is vested with title to all property,real or contracts;
personal;
19.
and all books and records
of action; wherever located. § 631.141,Fla. Stat.
of Respondent,
rights
THE DEPARTMENT IS AUTHORIZED AND DIRECTED TO:
of all the assets, estate, and property
of every kind
A. Take immediate possession
to Respondent
pursuant to sections 631.111,631.141,
whatsoever and wherever located belonging
of Respondentor
whether in the possession directors,
its officers,
and 631.155 Florida Statutes,
or other persons,
attorneys,agents, affiliates,
trustees, employees,consultants,
shareholders,
but not limited to: offices maintained by Respondent;furniture; equipment;
fixtures;
including
books,papers,
contract rights;
of action; claims and claim
office supplies; rights
choses in action;
premium records,
files, manuals,all
rate books, underwriting
policyfiles,application
files,
records,and all other records and data that
records,and related data; personnel
reinsurance files,
evidences of debt;
in whatever form maintained;
are otherwise the property of the Respondent,
letters of
stocks,bonds, debentures,
of deposit,
bank accounts; savingsaccounts; certificates
trust accounts, and all other sources of collateral, mortgages; real
and other securities;
credit,
property; and all funds
held by Respondent'sagents, subagents,producingagents, brokers,
or others under agency contracts
premium finance companies,
service representatives,
solicitors,
unearned
or otherwise which are due and unpaid to Respondent,includingpremiums,
and the
recoveries,
reserve funds,subrogation benefit of
agents'
commissions, agents'
balances,
loss ("NOL")
but not limited to any net operating
including
any tax refunds and/or recoverables,
that any rightof offset shall be subject of
to the provisions
with the understanding
canybacks,
Chapter631, Florida Statutes.
B. the business of Respondent.
Marshal the assets and liquidate
the time and placefixed for the filing of claims with
C. Publish notice specifying
Page 5 of 19
§ 631.181.
the Departmentin all states where Respondentmay have issued insurance policies.
Fla. Stat.
section
D. Give notice of this proceeding agents pursuant to
to Respondent's
631.341,Florida Statutes.
E. Employ and authorize the compensation of legal counsel, actuaries,
or lease
and such assistantsas it deems necessary; purchase
consultants,
clerks,
accountants,
authorizethe payment of the expenses
of
or
personal real propertyas it deems necessary; and
assets ofthe
to be
and the necessary incidentsthereof,
these proceedings paidout ofthe funds or
Fla.
§ 631.141(9),
ofthe Department or coming into its possession.
Respondentin the possession
Stat.
from the funds ofthis receivership, for theiractual
F. Reimburse such employees,
on the business of this receivership.
incurredwhile traveling
necessmy and reasonable expenses
G. Not defend or accept service of process on legalactions wherein Respondent,
either priorto or to
subsequent
the
commenced
or the insured is a party defendant,
Department,
is a
without authorizationof this Court;except, however, in actionswhere Respondent
the order,
and the actiondoes not affecta claim aginst
or
actions,
nominal party,as in certainforeclosure
in its
pleadings
file appropriate
affect the assets of Respondent, may
the Department
adversely
discretion.§ Fla.
631.021(5), Stat.
for
H. Commence and maintain all legalactionsnecessary, wherever necessary,
proceeding.
ofthis receivership
the proper administration
feasible to collect that are due and
I. Collect all debts that are economically
owing to Respondent.
funds and maintain bank accounts in accordance with section 631.221,
J. Deposit
Florida Statutes.
Page 6 of 19
securities
on
and certificatesof deposit
K. of all of Respondenfs
Take possession
other state,ifany,
with the ChiefFinancial Officer ofFIorida or any similar official of any
deposit
of
and convert to cash as much as may be necessary, in
to
its judgment, pay the expenses
of this receivership.
administration
claims and final judgmentswithout further
L. Negotiateand settle subrogation
order of this Court.
without further order ofthis Court.
M. Sell any salvagerecovered property
of the of the Florida
with the operation
N. Coordinate the operation receivership
with
other affected guaranty associationin accordance
Insurance GuarantyAssociation and any
The
and partII of chapter631, Florida Statutes,
the of sections 631.395,631.397,
provisions
data
contract with,provide services for,and
processing
release
Departmentmay in its discretion,
to claims on filewith Respondent, or insurance claims
documents
records,
claims files, pertaining
as to carry out the
filed with the guarantyassociation(s)
Departmentto the appropriate
necessary
Florida Statutes.
purposes of chapter631,
information for interested
0. change of address
Update its records to incorporate
if the Department
subscriber)
agent, claimant,
(e.g. policyholder,
creditor,
The
for any interestedindividuals/entities.
determines that there has been a change of address
future mailings.
Departmentis authorized
to use changeof address information for
of the states(s)
P. Transfer unclaimed funds to the unclaimed property unit(s)
record in the files.
reflectedin the claimants'last address of Department's
section
and unneeded records pursuantto
Q. Disposeof and destroyobsolete
Florida Statutes.
631.141(12),
of and destroy
to dispose
R. Authorize the guarantyassociation(s)
applicable
Page 7 of 19
the records have been
and
scanned,verified,
obsolete and unneeded records after
so long as the guaranty
added to the guaranty association'srecords management system
to handle
to these electronicrecords to the Department as required
provideaccess
association(s)
its duties.
certificateof authority
to engage in the insurance
S. Surrender Respondent's
of Insurance as well as to surrender
Regulation,
business in the state of Florida to the Office
certificate of authority
to engage in the insurance business to any other state's
Respondent's
where Respondentmay be
authority,
state regulatory
Departmentof Insurance,or appropriate
licensed.
of
of State,as well as any other states'Secretary
T. Notifythe Florida Secretary
and take any necessary actionto ensure that Respondent's
of Respondent
ofthe receivership
State,
authority
to both the Department's
and in any other state is subject
to do business in Florida
ability
court, up to and including
as Receiver and this Court's authorityas the receivership
the entity.
dissolving
administratively
U.
as the
to this Court for further instructions Departmentdeems
Apply
necessary.
IT IS FURTIIER ORDERED AND DIRECTED:
Insurance Company that was merged into
20. This order shall cover Family Security
company.
beingthe surviving
on or about May 31, 2022 with Respondent
Respondent
Page 8 of 19
"Business Associate" in of
possession "Protected Health
21. Any "Covered Entity"or
federal Health Insurance and
Portability
Information" ("PHI")as defined in and governedby the
of 1996, is authorized and directed to disclose such PHI to the Department as
Accountability
ifmade
to the
receiver of Respondent same extent that such disclosurewould have been permissible
to Respondentpriorto the entry ofthis Order.
directly
personal
of"nonpublic information" CNPI")
22. Any "financial institution"in possession
the Financial Modernization Act of 1999, is
as defined in and governedby Gramm-Leach-Bliley
the
Departmentas receiver of Respondent,
to
authorized and directed to disclose such NPI to the
ifmade directly
same extent that such disclosure would have been permissible
prior
to Respondent
to the entry of this Order.
or other affiliateare
23. All records and data of Respondentheld by a parent corporation
or be readily
be secured and segregated capable
and remain the property of Respondentand shall
from all other persons and entities'records
at no additional cost to the Department,
of segregation,
as
and data. This includes all records and data that are otherwise the propertyof the Respondent,
24A and 32 of this Order. At the request of the Departmentthe parent
described in paragraphs
to
of any type that pertain
or other
corporation affiliateshall providea completeset of ali records
access control of the
to and administrative operating
systems
the Respondent's complete
business;
on which the data is use of the software
maintained; that runs those systems either through
of licensing
agreements or otherwise.
assumption
of631.252, Florida
24. Exceptas noted in the following pursuantto the provisions
paragraph,
that have
issued by Respondent
of insurance or similar contracts of coverage
all policies
Statutes,
not expiredare cancelled effective 12:01 a.m.
on the date 30 days after the entry of the
of insurance issued by Respondent
however,that any policies flood
LiquidationOrder provided,
Flood Insurance Act of 1968, as amended shall not
be cancelled. Policies
pursuant to the National
Page 9 of 19
to
dates prior the dates otherwise under
applicable
or contracts of coverage with normal expiration
or
or
this paragraph, which are terminated by insureds,or lawfullycancelled by the Department
insurer before such date,shall stand cancelled as of the earlierdate.
a contract to finance a premium
25. Any premium finance company that has entered into
owed to the Respondent
policyissued by the Respondentis required pay any premium
for a to
to the Department.
directly
26. The Departmentshall administerreinsurancelosses recoverable or payable by the
63 Florida Statutes. All concerning
correspondence
Respondentin accordance with Chapter I,
and the reinsuring
reinsurancecoverage shall be between the Department company
Respondent's
or intermediary.
27. The United States Postal Service shall be directed to provide any information
the Respondentand to handle future deliveries of
by
requested the Departmentregarding
mail
Respondenfs as directedby the Department.
financial
and loan association,
28. ofa copy ofthis Order,any bank, savings
Upon receipt
or other person which has on deposit,
institution,
in custody,or control
its possession, any funds,
or which are held by
accounts, or other assets which
are or may be property of Respondent,
service
agents, subagents,producingagents, brokers, solicitors,
Respondenfs affiliates,
others under agency contracts or which were
premium
representatives, finance companies,or
otherwise set up for the benefit to of how such accounts or assets
Respondentregardless
are titled is
directed to immediately:
A. Disclose to the Departmentthe existence of those accounts, any funds
to
relating
and all documents in its possession
contained therein, Respondentfor the Departmenfs
and copying;
inspe
Preview
Filing# 167765186 E-Filed 03/01/2023 08:32:07 AM IN THE CIRCUIT COURT OF THE 17TH JUDICIAL CIRCUIT IN AND FOR BROWARD COUNTY, FLORIDA Case No.: CACE-21-010649 GLORIA H. OLIVERAS & JOSE OLIVERAS, Plaintiffs, V UNITED PROPERTY & CASUALTY INSURANCE COMPANY, Defendant. I NOTICE FOR MANDATORY STAY OF PROCEEDINGS Defendant, UNITED PROPERTY & CASUALTY INSURANCE COMPANY ("UPC") againstUPC. In notifies the Court of the permanent, automatic stay as to litigation respectfully support thereof,Defendant would show as follows: 1. A Consent Order Appointing the Florida Department of Financial Services as Receiver of UPC for purposes of Liquidation,Injunction,and Notice of Automatic Stay ("LiquidationOrder") was entered on February 27, 2023. (A true and correct copy of the LiquidationOrder is attached hereto Exhibit A). 2. againstUPC. See Exhibit A A permanent stay has been entered as to any litigation and §631.041(1),Fla. Stat. 3 The Liquidation Order has also triggered the Florida Insurance Guaranty Association Act, Fla. Stat. §631.50 et seq. In the event this is an action arisingout of a claim that could be covered by the Florida Insurance Guaranty Association (FIGA), then a Motion to *** FILED: BROWARD COUNTY, FL BRENDA D. FORMAN, CLERK 03/01/2023 08:32:06 AM.**** CASE NO.: CACE-21-010649 Substitute FIGA should be filed,togetherwith an Amended Complaint with claims and allegations made againstFIGA, not UPC. specifically 4. To the extent that the Plaintiff chooses to amend their Complaint and substitute FIGA for UPC, the Florida Legislature's statutory scheme creatingthe Florida Insurance Guaranty Association mandates a mandatory minimum six month stay of proceedings under Fla. Stat. §631.67, which states: All proceedingsin which the insolvent insurer is a party or is obligatedto defend a party in any court or before any quasi-judicial or administrative board in this be stayed for 6 months, or such additional period from the date the state shall insolvency is adjudicatedby a court of competent jurisdictionto permit proper defense by the association o f all pending causes o f action as to any covered claims; provided that such stay may be extended for a periodoftime greater than 6 months to a court of competent jurisdiction. upon proper application 5. The minimum six month stay ofproceedings under Fla. Stat. §631.67 is mandatory. Halili v. Radiation Oncology Consultants, P.A., 820 So.2d 415 (Fla.5th DCA 2002). 6. The mandatory minimum six month stay under Fla. Stat. §631.67 appliesnot only to the individual party insured by the insolvent carrier,but it also appliesto the entire proceeding. Martinez v. Iturbe,%13 So.2d. 266 (Fla.3rd DCA 2002). 7. The six month stay mandated by Fla. Stat. §631.67 represents a reasonable restriction to access to the courts and is constitutional. Synder v. Douglas, 647 So.2d 275 (Fla.2nd DCA 1994). WHEREFORE, Defendant, UPC, givesNotice to this Court and all partiesthat alllitigation againstUPC is permanently stayed,and that FIGA is entitled to a mandatory six month stay of proceedings,if it is to be substituted in this action. CASE NO.: CACE-21-010649 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on thelst day of March, 2023, this document was filed using the Florida Courts E-FilingPortal. This document is being served on all counsel and pro se parties of record by the Florida Courts E-FilingPortal,pursuant to and in compliance with Fla. R. Jud. Admin. 2.516. The electronic addresses are: Jamie Alvarez, Esq., Shield Law Group, P.A., jamie@shieldlawgp.com; legalservice@shieldlawgp.com; paralegal@shieldlawgp.com; Attorney for Plaintiffs,Jose Oliveras and Gloria H. Oliveras; and to UPCIC@myfloridacfo.com. KELLEY KRONENBERG /s/ StephanieT Merchant Stephanie T Merchant, Esq. Fla. Bar No.: 1007142 Steven L. Scharf, Esq. Fla. Bar No.: 77781 sscharf@kelleykronenberg.com 10360 West State Road 84 Fort Lauderdale, FL 33324 Telephone: (954) 370-9970 Facsimile: (954) 382-1988 Attorneys for Jamie Alvarez, Esq., Shield Law Group, P.A. Address for service of pleadingsonly com slseservice@kelleykronenberg. Filing# 167635273 E-Filed 02/27/2023 04:17:01 PM IN THE CIRCUIT COURT OF THE SECOND JUDICIAL CIRCUIT, IN AND FOR LEON COUNTY, FLORIDA ex rel., State of Florida, the Department of Financial Services of the State of Florida, Relator CASE NO.: 2023-CA-000320 VS. & Insurance Company, United Property Casualty Respondent SERVICES CONSENT ORDER APPOINTING THE FLORIDA DEPARTMENT OF FINANCIAL COMPANY FOR AS RECEIVER OF UNITED PROPERTY & CASUALTY INSURANCE PURPOSES OF LIOUIDATION, INJUNCTION, AND NOTICE OF AUTOMATIC STAY Services THIS CAUSE was considered on the Petitionofthe Florida Departmentof Financial the DepartmentofFinancialServices as Receiver of for a Consent Order appointing ("Department"), of United Property & for CasualtyInsurance Company ("Respondent" "Company"), Purposes or The Court, having "Petition"). and Notice of Automatic Stay (hereinafter, Injunction, Liquidation, informed in the premises, and otherwise beingfully ofrecord, reviewed and considered the pleadings finds as follows: a proceeding delinquency I. Section 631.021, Florida Statutes (2022),providesthat constitutes the sole and exclusive method of liquidating, pursuant to chapter631, Florida Statutes, a Florida domiciled insurer. or conserving reorganizing, rehabilitating, over these and has proceedings exclusive 2. This Court has jurisdiction original wherever located,including property over jurisdiction all assets or property of the Respondent, limits ofthe state. §§ Fla. Stat. 631.021(1),(6), located outside the territorial 3. over any person requiredby section 63 I.391, This Court can exercisejurisdiction to cooperatewith the ("OIR") Departmentand the Office of Insurance Regulation Florida Statutes, of law, section by other provisions to this Court's jurisdiction and over all persons made subject 631.025,Florida Statutes. E-Filed and En@e-N-?. FEB 2 7 2023 Page 1 of 19 byJAon Stat. Venue is proper in the Circuit Court of Leon County.§ 631.021(2), Fla. 4. or proper orders to carry out the 5. This Court is authorized to enter all necessary Act, sections 631.001 et seq., Florida Rehabilitation and Liquidation purpose of the Florida Insurers Statutes. as a state of Florida domestic property and casualty 6. Respondentwas licensed by OIR insurer authorized to transact insurance business in the state of Florida pursuant to Chapter624, Part lines of insurance: authorizedto write in the following is specifically III,Florida Statutes.Respondent (090) Inland Marine; (120) Homeowners Multi-Peril; (010) Fire; (020) Allied Lines; (040) and (270) Boiler and Machinery. (260) Burglaryand Theft; Earthquake;(170) Other Liability placeof business is located at: 800 2?d Ave South,St. Petersburg, Florida. principal Respondent's a delinquency Upon a determination by OIR that one or more grounds exist to initiate 7. that a should be proceeding an insurer and upon OIR's determination against proceeding delinquency of such delinquency to refer the insurer to the Departmentfor the initiation OIR is required initiated, Florida Statutes. § 631.031(1), proceeding. section Florida Statutes, 631.031(1), 8. By letterdated February16,2023, pursuant to Jimmy Chief Financial Officer, Mark Yaworsky,Interim Commissioner of OIR, advised Florida's Attached Respondent. against that groundsexist for the initiation Patronis, proceedings of liquidation to the letter was an affidavit from VirginiaA. Christy,OIR's Director of Property & Casualty which provided FinancialOversight, by that Section. the informationrequired to the Department this Court petition 9. Section Florida Statutesempowers 631.031(2), a domestic insurerupon notification from OIRthat grounds itto for a consent order directing liquidate exist for the initiationofsuch The Departmentfinds that the affidavit and referral meet proceedings. of Section the statutoryrequirements Florida Statutes. 631.031(1), Page 2 of 19 the Department may applyfor such an Pursuant to section 631.061,Florida Statutes, 10. become insolvent or upon the existence of any of the grounds order if the insurer is or is about to in section 631.051,Florida specified Statutes. the Court has in the DepartmenfsPetition, 11. Based on the evidence presented of Respondentpursuant to the following determined that sufficient groundsexist for the liquidation of law: provisions a. Section Florida 631.061(1), Statutes in that Respondentis insolvent within the meaning of section 631.OII(14). b. Section Florida 631.051(11), Statutes in that Respondenthas consented, as Receiver of of the Department to the appointment througha Resolution of its board of directors, for the purposes of liquidation. Respondent C. Section Florida 631.051(3), Statutes in that OIR has determined that is hazardous creditors, to its policyholders, and the stockholders, continued operation Respondent's public. therefore finds that it in the best interests of Respondent,its 12. The Court is receiver of stockholders, creditors, and the Public that the Departmentbe appointed policyholders, for purposes of liquidation. Respondent THEREFORE, IT IS ORDERED AND ADJUDGED: 13. The Departmentof Financial Services of the State of Florida shall be and is hereby effective immediately upon the receiver of Respondentfor purposes of liquidation, appointed entry of this Order. Page 3 of 19 and directors, officers, 14. all the powers ofthe Respondent's The Departmentis granted and who have no of any kind further authority managers, all of who are discharged permanently over the affairsor assets of Respondent, except as by the Department. may be redelegated Fla. Stat. § 631.141(10), to direct and manage the affairs of Respondent,to 15. The Departmenthas full power hire and and to deal with the propertyand business of the Respondent. employees, discharge trustees,administrators, agents and employees,and all other 16. All directors, officers, employed or Respondentor currently utilized by Respondentin connection persons representing forthwith, with the conduct of its business are discharged however,the Departmentmay provided, Fla. Stat. discretion.§ retain such persons in the Department's 631.141(10), shall be defined in accordance with 17. For purposes ofthis Order,the term "affiliate" section and Florida Statutes, shall include,but not be limited to, the following 631.011(1), Claims affiliates:United Insurance HoldingCorp.;United Insurance Management L.C.;Skyway Services LLC; AmCo HoldingCompany LLC; Interboro Insurance Company; UPC Re; Skyway LLC. LLC: Skyway TechnologyServices, Reinsurance Services,LLC; Skyway LegalServices, director, attorney, trustee,administrator, 18. Any present or former officer, manager, of contractor,or affiliate independent agent, accountant, actuary,broker,employee,adjuster, over, or Respondentand any other person who possesses or possessedany executive authority affairs or the affairs who exercises or exercised any control over, any segment of Respondent's shall be required Persons") of its affiliates("Controlling cooperate with the Department, to fully Florida Statutes. Any person who fails to cooperate with the pursuant to section 631,391, interfereswith the Department, or fails to follow the instructions ofthe Department, Department, be excluded business premises. from the Respondent's may, at the discretion, Department's Page 4 of 19 The Department is vested with title to all property,real or contracts; personal; 19. and all books and records of action; wherever located. § 631.141,Fla. Stat. of Respondent, rights THE DEPARTMENT IS AUTHORIZED AND DIRECTED TO: of all the assets, estate, and property of every kind A. Take immediate possession to Respondent pursuant to sections 631.111,631.141, whatsoever and wherever located belonging of Respondentor whether in the possession directors, its officers, and 631.155 Florida Statutes, or other persons, attorneys,agents, affiliates, trustees, employees,consultants, shareholders, but not limited to: offices maintained by Respondent;furniture; equipment; fixtures; including books,papers, contract rights; of action; claims and claim office supplies; rights choses in action; premium records, files, manuals,all rate books, underwriting policyfiles,application files, records,and all other records and data that records,and related data; personnel reinsurance files, evidences of debt; in whatever form maintained; are otherwise the property of the Respondent, letters of stocks,bonds, debentures, of deposit, bank accounts; savingsaccounts; certificates trust accounts, and all other sources of collateral, mortgages; real and other securities; credit, property; and all funds held by Respondent'sagents, subagents,producingagents, brokers, or others under agency contracts premium finance companies, service representatives, solicitors, unearned or otherwise which are due and unpaid to Respondent,includingpremiums, and the recoveries, reserve funds,subrogation benefit of agents' commissions, agents' balances, loss ("NOL") but not limited to any net operating including any tax refunds and/or recoverables, that any rightof offset shall be subject of to the provisions with the understanding canybacks, Chapter631, Florida Statutes. B. the business of Respondent. Marshal the assets and liquidate the time and placefixed for the filing of claims with C. Publish notice specifying Page 5 of 19 § 631.181. the Departmentin all states where Respondentmay have issued insurance policies. Fla. Stat. section D. Give notice of this proceeding agents pursuant to to Respondent's 631.341,Florida Statutes. E. Employ and authorize the compensation of legal counsel, actuaries, or lease and such assistantsas it deems necessary; purchase consultants, clerks, accountants, authorizethe payment of the expenses of or personal real propertyas it deems necessary; and assets ofthe to be and the necessary incidentsthereof, these proceedings paidout ofthe funds or Fla. § 631.141(9), ofthe Department or coming into its possession. Respondentin the possession Stat. from the funds ofthis receivership, for theiractual F. Reimburse such employees, on the business of this receivership. incurredwhile traveling necessmy and reasonable expenses G. Not defend or accept service of process on legalactions wherein Respondent, either priorto or to subsequent the commenced or the insured is a party defendant, Department, is a without authorizationof this Court;except, however, in actionswhere Respondent the order, and the actiondoes not affecta claim aginst or actions, nominal party,as in certainforeclosure in its pleadings file appropriate affect the assets of Respondent, may the Department adversely discretion.§ Fla. 631.021(5), Stat. for H. Commence and maintain all legalactionsnecessary, wherever necessary, proceeding. ofthis receivership the proper administration feasible to collect that are due and I. Collect all debts that are economically owing to Respondent. funds and maintain bank accounts in accordance with section 631.221, J. Deposit Florida Statutes. Page 6 of 19 securities on and certificatesof deposit K. of all of Respondenfs Take possession other state,ifany, with the ChiefFinancial Officer ofFIorida or any similar official of any deposit of and convert to cash as much as may be necessary, in to its judgment, pay the expenses of this receivership. administration claims and final judgmentswithout further L. Negotiateand settle subrogation order of this Court. without further order ofthis Court. M. Sell any salvagerecovered property of the of the Florida with the operation N. Coordinate the operation receivership with other affected guaranty associationin accordance Insurance GuarantyAssociation and any The and partII of chapter631, Florida Statutes, the of sections 631.395,631.397, provisions data contract with,provide services for,and processing release Departmentmay in its discretion, to claims on filewith Respondent, or insurance claims documents records, claims files, pertaining as to carry out the filed with the guarantyassociation(s) Departmentto the appropriate necessary Florida Statutes. purposes of chapter631, information for interested 0. change of address Update its records to incorporate if the Department subscriber) agent, claimant, (e.g. policyholder, creditor, The for any interestedindividuals/entities. determines that there has been a change of address future mailings. Departmentis authorized to use changeof address information for of the states(s) P. Transfer unclaimed funds to the unclaimed property unit(s) record in the files. reflectedin the claimants'last address of Department's section and unneeded records pursuantto Q. Disposeof and destroyobsolete Florida Statutes. 631.141(12), of and destroy to dispose R. Authorize the guarantyassociation(s) applicable Page 7 of 19 the records have been and scanned,verified, obsolete and unneeded records after so long as the guaranty added to the guaranty association'srecords management system to handle to these electronicrecords to the Department as required provideaccess association(s) its duties. certificateof authority to engage in the insurance S. Surrender Respondent's of Insurance as well as to surrender Regulation, business in the state of Florida to the Office certificate of authority to engage in the insurance business to any other state's Respondent's where Respondentmay be authority, state regulatory Departmentof Insurance,or appropriate licensed. of of State,as well as any other states'Secretary T. Notifythe Florida Secretary and take any necessary actionto ensure that Respondent's of Respondent ofthe receivership State, authority to both the Department's and in any other state is subject to do business in Florida ability court, up to and including as Receiver and this Court's authorityas the receivership the entity. dissolving administratively U. as the to this Court for further instructions Departmentdeems Apply necessary. IT IS FURTIIER ORDERED AND DIRECTED: Insurance Company that was merged into 20. This order shall cover Family Security company. beingthe surviving on or about May 31, 2022 with Respondent Respondent Page 8 of 19 "Business Associate" in of possession "Protected Health 21. Any "Covered Entity"or federal Health Insurance and Portability Information" ("PHI")as defined in and governedby the of 1996, is authorized and directed to disclose such PHI to the Department as Accountability ifmade to the receiver of Respondent same extent that such disclosurewould have been permissible to Respondentpriorto the entry ofthis Order. directly personal of"nonpublic information" CNPI") 22. Any "financial institution"in possession the Financial Modernization Act of 1999, is as defined in and governedby Gramm-Leach-Bliley the Departmentas receiver of Respondent, to authorized and directed to disclose such NPI to the ifmade directly same extent that such disclosure would have been permissible prior to Respondent to the entry of this Order. or other affiliateare 23. All records and data of Respondentheld by a parent corporation or be readily be secured and segregated capable and remain the property of Respondentand shall from all other persons and entities'records at no additional cost to the Department, of segregation, as and data. This includes all records and data that are otherwise the propertyof the Respondent, 24A and 32 of this Order. At the request of the Departmentthe parent described in paragraphs to of any type that pertain or other corporation affiliateshall providea completeset of ali records access control of the to and administrative operating systems the Respondent's complete business; on which the data is use of the software maintained; that runs those systems either through of licensing agreements or otherwise. assumption of631.252, Florida 24. Exceptas noted in the following pursuantto the provisions paragraph, that have issued by Respondent of insurance or similar contracts of coverage all policies Statutes, not expiredare cancelled effective 12:01 a.m. on the date 30 days after the entry of the of insurance issued by Respondent however,that any policies flood LiquidationOrder provided, Flood Insurance Act of 1968, as amended shall not be cancelled. Policies pursuant to the National Page 9 of 19 to dates prior the dates otherwise under applicable or contracts of coverage with normal expiration or or this paragraph, which are terminated by insureds,or lawfullycancelled by the Department insurer before such date,shall stand cancelled as of the earlierdate. a contract to finance a premium 25. Any premium finance company that has entered into owed to the Respondent policyissued by the Respondentis required pay any premium for a to to the Department. directly 26. The Departmentshall administerreinsurancelosses recoverable or payable by the 63 Florida Statutes. All concerning correspondence Respondentin accordance with Chapter I, and the reinsuring reinsurancecoverage shall be between the Department company Respondent's or intermediary. 27. The United States Postal Service shall be directed to provide any information the Respondentand to handle future deliveries of by requested the Departmentregarding mail Respondenfs as directedby the Department. financial and loan association, 28. ofa copy ofthis Order,any bank, savings Upon receipt or other person which has on deposit, institution, in custody,or control its possession, any funds, or which are held by accounts, or other assets which are or may be property of Respondent, service agents, subagents,producingagents, brokers, solicitors, Respondenfs affiliates, others under agency contracts or which were premium representatives, finance companies,or otherwise set up for the benefit to of how such accounts or assets Respondentregardless are titled is directed to immediately: A. Disclose to the Departmentthe existence of those accounts, any funds to relating and all documents in its possession contained therein, Respondentfor the Departmenfs and copying; inspe