Make us your home page

American Keystone Insurance to be liquidated, judge rules

American Keystone Insurance Co. of Ponte Vedra Beach is being placed into receivership and liquidated, the second Florida home­owners insurance company to fail this year.

Leon County Circuit Court Judge John C. Cooper approved the liquidation and appointed the Florida Department of Financial Services as receiver.

The 2-year-old insurer has about 7,800 homeowners, commercial, residential and wind policies in force, including 424 in the Tampa Bay area.

Regulators on Monday urged anyone who has homeowners insurance with American Keystone to immediately contact their agent to secure coverage with a new company. All policies will be canceled effective 11:59 p.m. Nov. 8, unless otherwise terminated before then.

Tom Zutell, a spokesman for the state Office of Insurance Regulation, said affected homeowners will be without coverage if they don't make the deadline.

"Given that this liquidation order comes during hurricane season, it is imperative that home­owners who have coverage with American Keystone immediately contact their agents to secure new coverage," Florida Chief Financial Officer Alex Sink said in a statement.

Florida Insurance Commissioner Kevin McCarty recommended American Keystone's liquidation after receiving the company's August financial statement last month. The company's reserves were $335,000 shy of the required $4 million. Based on cash-flow projections, he said American Keystone was unlikely to have enough money to pay private reinsurers and the state-run Florida Hurricane Catastrophe Fund.

"We worked with the company to resolve the outstanding issues," he said. "When it became evident the issues could not be remedied, I had to take action to protect their policyholders."

American Keystone is the second homeowners insurer to be seized by the state, following the April collapse of Hollywood-based Coral Insurance Co.

Jeff Harrington can be reached at or (727) 893-8242.


Help for customers

Contact your agent right away to get a new insurer. Consumers with questions should call American Keystone's customer service department toll-free at 1-877-350-9777. After Nov. 8, any questions about handling complains should be directed the Florida Insurance Guaranty Association toll-free at 1-866-928-4310. FIGA acts as a safety net to process claims from any insurer that has gone insolvent.

American Keystone Insurance to be liquidated, judge rules 10/12/09 [Last modified: Thursday, October 15, 2009 1:02pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times


Join the discussion: Click to view comments, add yours

  1. Tampa is 15th-most popular city to move to with U-Haul


    TAMPA —Tampa is undoubtedly a destination point, at least according to U-Haul.

    Tampa is the No. 15 destination for people moving with U-Haul trucks. | Times file photo
  2. Florida's economy growing faster than other big states and far better than U.S. overall


    When it comes to economic growth, Florida's running alongside the leading states and well ahead of the United States as a whole.

  3. Westshore Marina District project takes shape with another acquisition

    Real Estate

    TAMPA — One of Tampa Bay's prime waterfront areas took another major step toward redevelopment Friday as WCI Communities bought 2.35 acres in Westshore Marina District.

    WCI Communities, Lennar's high-end subsidiary,has paid $2.5 million for 2.35 acres in the Westshore Marina District for 35 townhomes. WCI is under contract  to buy an additional 9.5 acres.
[BTI Partners]
  4. Posh Guy Harvey RV park to open in Tampa Bay with $250,000 cottages


    HOLIDAY — Love those Guy Harvey T-shirts with the soaring marlins? In the not too distant future, you might be able to kick back in your own Guy Harvey cottage in the first-ever Guy Harvey RV park.

    Renderings of the clubhouse and an RV cottage site of the planned Guy Harvey Outpost Club & Resort Tarpon Springs.
[Guy Harvey Outpost Collection]
  5. Port Tampa Bay secures $9 million grant to deepen Big Bend Channel


    Port Tampa Bay has secured a $9 million grant from the U.S. Army Corps of Engineers for the widening and deepening of the Big Bend Channel in southern Hillsborough County.