Sarasota-based Centauri Specialty Insurance, now part of Arbol’s Lilypad Insurance Holdings, used non-appointed adjusters in the wake of Hurricane Ian in 2022 and has agreed to pay a $100,000 fine to Florida regulators.
A market conduct examination by the Florida Office of Insurance Regulation, completed in April, found that Centauri Specialty used adjusters that were not properly appointed in 168 cases. The carrier also failed to disclose when claims payments were not made in full.
Both are considered violations of the Florida insurance statutes, according to a consent order signed by Insurance Commissioner Michael Yaworsky and Centauri’s chief operating officer, Traci Stillwagon. State law requires adjusters to be licensed in the state and appointed with a carrier.
“Centauri has or will institute the necessary corrective actions to immediately improve claims handling operations in accordance with Florida law and to improve customer service,” the May 8 consent order reads.
Centauri had some 10,000 policies in force in Florida last year, about half of which were homeowners’ policies. Once part of Applied Underwriters, Centauri was purchased by Lilypad in early 2024. During the market conduct review period, Centauri was still part of Applied Underwriters, the OIR order notes.
Lilypad officials could not be reached for comment Tuesday morning.
The order gives Centauri 10 days to pay the $100,000 fine, plus $2,000 in administrative costs. Failure to adhere to terms of the consent order may result in administrative action, such as suspending the company’s certificate of authority. OIR may also deploy examiners to evaluate Centauri’s future claims-handling operations.
One year ago, Florida regulators levied fines against five other insurers over claims-handling violations after Hurricane Ian, including the largest fine yet – $1 million – against Heritage Property & Casualty Insurance Co. Heritage utilized adjusters that were not properly appointed or utilized emergency adjusters before a temporary Florida license was issued, the OIR’s market conduct exam found.
Lawsuits have made similar allegations, charging that some insurers have hired unlicensed adjusters in thousands of claims inspections.
Topics
Florida
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