CLEARWATER, Fla., Oct. 30, 2009 (GLOBE NEWSWIRE) -- Homeowners Choice, Inc. (Nasdaq:HCII), a Florida-based insurance holding company, today announced that its wholly-owned insurance subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc. has been selected by the Florida Department of Financial Services as the replacement insurer for policyholders of American Keystone Insurance Company, which was placed into receivership by the Circuit Court in Leon County, Florida. The Florida Department of Financial Services is the court-appointed receiver. On Oct. 9, 2009 the Department announced plans to liquidate the company. All of American Keystone's approximately 5,500 homeowners' policies are scheduled for cancellation at 11:59 p.m. on Nov. 8, 2009. The Department has authorized Homeowners Choice to offer replacement coverage to those policyholders. Homeowners Choice will pay commissions to the Department for replacement policies that remain active for one year. The policyholders and their agents are free to seek out other insurance companies.
According to Homeowners Choice, it will begin notifying American Keystone's policy holders and their agents immediately. "Our replacement quote will be lower than the rate charged by Citizens for similar coverage," said F.X. McCahill, chief executive officer of Homeowners Choice. "While it is unfortunate that American Keystone policy holders are in the position they are, we want to offer them a sound alternative. The fact that the Department of Financial Services selected Homeowners Choice is a strong statement about our financial stability," added McCahill.
The website of the Florida Department of Financial Services says American Keystone's policyholders will be entitled refunds for the unused portions of their policies. The refunds will be paid by the Florida Insurance Guaranty Association after the receiver completes it processing of the policy records. A $100 statutory deductible will be taken from the amount owed.
About Homeowners Choice, Inc.
Homeowners Choice, Inc. is a Florida-based insurance holding company headquartered in Clearwater. Through its subsidiary corporations, Homeowners Choice provides property and casualty homeowners' insurance, condominium owners' insurance and tenants' insurance solely to Florida property owners. Founded in 2006, Homeowners Choice today serves approximately 60,000 policyholders throughout Florida representing approximately $100 million in annualized premiums. The company's common shares trade on the NASDAQ Global Market under the ticker symbol HCII and were recently added to the Russell Microcap Index. Warrants trade on the same market under the ticker symbol HCIIW. More information about Homeowners Choice, Inc. is available at www.hcpci.com.
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