Fla. Agency Sues Directors Of Defunct Miami-Based Insurer

Law360, Miami (January 27, 2014, 5:33 PM EST) -- The Florida Department of Financial Services, as receiver for Northern Capital Insurance Co., on Wednesday sued the company's directors and officers, claiming they ran Northern Capital into the ground by recklessly pursuing take-out policies from the state's backstop insurer.

In a complaint filed in Florida's Eleventh Judicial Circuit, DFS said the directors of the Miami-based insurer pursued growth by acquiring high-risk, geographically concentrated “take-out” insurance policies from the state-backed Citizens Property Insurance Corp.

They took on these take-out policies — ones Citizens was ordered to return...
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