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TDI Notice For Consumers With FedNat Insurance Policies

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News Release — Wednesday, Sept. 28, 2022

FedNat, a Florida insurance company licensed in Texas, was ordered by a Florida court to end its operations. FedNat policies, except for federal flood policies, will be cancelled effective 12:01 a.m. October 27, 2022, unless otherwise terminated prior to that date.

There are about 3,700 FedNat Insurance policyholders in Texas. Texas Department of Insurance (TDI) recommends those who have a policy with FedNat Insurance to contact their insurance agent as soon as possible to arrange for alternate coverage.

 The Texas Property and Casualty Insurance Guaranty Association (TPCIGA) will refund Texas FedNat policyholders’ unearned premium (premium paid for the period after the policy is canceled).

TPCIGA will be responsible for paying claims for unearned premium. Texas customers/policyholders don’t have to file their own claim. The Receiver will notify TPCIGA of the policyholder’s unearned premium claim.

TPCIGA was created by the Texas Legislature to pay property and casualty claims if an insurance company fails. This includes refunding unearned premium payments to policyholders. Learn more about TPCIGA on their About Us webpage.

People living in another state can find their state’s guaranty association by going to the National Conference of Insurance Guaranty Funds’ website.

To help protect Texas coastal insurance consumers, TDI issued an emergency rule earlier this year that removes certain barriers to getting wind and hail coverage through the Texas Windstorm Insurance Association (TWIA).

About 1,000 FedNat Insurance policyholders live in either TWIA’s Designated Catastrophe Area or Harris County, TDI reported Sept. 28, 2022.

Additional Resources From TDI

Additional questions on this topic may be directed to TDI at 1-800-252-3439. Contact the Texas Property and Casualty Insurance Guaranty Association by phone at 512-345-9335 or toll-free 800-856-0298; fax at 512-345-9341; by email at [email protected]; or mail to TPCIGA, 9120 Burnet Road, Austin, TX 78758.

Author: Faith Huffman

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