Who is Southern Fidelity Insurance Company?
Southern Fidelity Insurance Company (“SFIC”) is headquartered in Tallahassee, Florida and has been approved by the Louisiana Department of Insurance to offer personal property coverage. The LA DOI issued SFIC’s Certificate of Authority to do business in December 2007 and was awarded $7 Million dollars in grant funds through the “Insure Louisiana” program.
Recently, your agency was contacted by SFIC regarding a “Depopulation” plan from Louisiana Citizens. SFIC is planning to assume up to 20,000 policies from LA Citizens in early 2008.
SFIC is managed by a team of insurance professionals with in-depth experience in the homeowners and dwelling fire market. Our experience is based in catastrophe-prone areas such as Florida and South Carolina. We understand and know how to manage risk in areas like Louisiana. We are committed to providing you with an exceptional level of service. SFIC’s products will include:
SFIC has its own managing general agency, Southern Fidelity Managing Agency (“SFMA”). SFMA contracts with independent agents to represent SFIC.
Will my policyholder receive communication from Southern Fidelity explaining the takeout?
Yes, with the agents’ permission we plan on communicating with the policyholder to make them aware of the process.
Where can I obtain additional information on Southern Fidelity?
Please visit our website at http://www.southernfidelityins.com
What is required to participate in the takeout and receive an appointment from Southern Fidelity?
Letters were sent to your agency soliciting your permission to include your LA Citizens policies in our depopulation. If your agency has agreed with SFIC’s planned assumption there is no further action is required by you or your customer.
If your agency hasn’t completed a Agency Agreement and the agency profile (please go to http://www.southernfidelityins.com/LA-Agent-App.pdf to download these forms), please do so immediately.
Please mail/fax/email in a copy of your Errors & Omissions Dec page, copy of your insurance license, and a signed W-9 form. Please send this information to:Email: firstname.lastname@example.org Fax: 850-521-3081 Mail: PO Box 16029, Tallahassee, Florida, 32317-6029
How long will I retain ownership of my policies?
You have undisputed ownership of your policies. Coverage will continue with Southern Fidelity as long as you maintain a valid insurance license, an agency agreement is in place with SFMA and the policyholder continues to do business with you.
Will Southern Fidelity have additional takeouts or depopulations from Citizens?
Based on our business model, and our writing requirements per the “Insurance Louisiana” program, we may elect to pursue additional takeouts.
What commission rate will I receive from Southern Fidelity?
For LA Citizens Take Out policies our commission structure will be a flat percentage of written premiums not including fees, assessments and recoupments. We plan on paying a higher commission rate than Citizens. This will result in an increase in commission dollars to our agency partners versus LA Citizens and other takeout companies.
Who will be handling policy administration?
For polices that are renewed later in the year with SFIC, SFMA will be in charge of all policy administration matters, including agency appointments, on behalf of SFIC. A dedicated group of representatives will handle all SFIC calls.
Before the polices are renewed, the policy administration will continue to be handled by LA Citizens.
What is the financial security of Southern Fidelity?
The Louisiana Department of Insurance (LA DOI) has strict regulations regarding a company’s financial condition and the financial capital required to admit a new insurance company to the state. SFIC has met all of the LA DOI’s financial requirements and received a Certificate of Authority from the LA DOI. SFIC’s reinsurance program will minimize catastrophe exposure by transferring the risk to a consortium of reinsurance companies. All companies providing reinsurance to SFIC will have a rating of “A” or better by AM Best.
The company is managed by an experienced executive team well seasoned in and committed to the Louisiana property market. SFIC pledges to be responsible underwriters in all facets of our business – from claims adjudication, policy administration, reinsurance placement, and all other components of our business.
Will mortgage companies accept the Southern Fidelity policy?
Southern Fidelity has received a Demotech Financial Stability Rating® of A, Exceptional (provisional). According to Demotech, Demotech Financial Stability Ratings® of A or better are accepted by Fannie Mae, Freddie Mac, and HUD. Please visit the Demotech web site, www.demotech.com, for more information.
If my policyholder is targeted to be assumed, can they reject coverage?
A consumer may reject the offer of coverage. However, there are many reasons why should support Southern Fidelity when your policyholder calls you for advice: