In May, Florida’s Chief Financial Officer Jimmy Patronis announced new appointments to the board of directors for the Florida Insurance Guaranty Association (FIGA). However, just a week later, one of those appointees, a State Farm employee, was replaced, leaving the board without any representatives from auto insurers.
The board of FIGA, responsible for handling claims when insurance companies become insolvent, now lacks auto insurer representation, at least temporarily. It’s unclear if state law mandates the inclusion of auto insurance companies on the board. Florida Statute 631.56 states: “In appointing members to the board, the department shall consider among other things whether all areas of insurance covered by this part are fairly represented.”
Despite this, Patronis expressed confidence in the board’s current composition, asserting that it now has a quorum as required by law, even though only five of the nine positions are filled.
“The CFO is confident that the wealth of insurance experience on the FIGA board will be an asset to insurance consumers and the insurance industry statewide,” a spokesperson for Patronis said.
The changes come at a time of transition for FIGA, which is currently without an official leader. Corey Neal, who had served as executive director since early 2022, stepped down in late May to join SageSure as executive vice president. Steve Brown, FIGA’s chief operating officer, is expected to be named director pending board approval, but no meeting has been scheduled yet.
FIGA officials, including Brown, were unavailable for comment regarding the new board members.
Under Florida law, the state’s CFO has significant authority over the board, with the ability to appoint up to nine members for four-year terms. The law requires at least three members to be from domestic insurance companies.
“The department shall approve and appoint to the board persons recommended by the member insurers or shall approve and appoint other persons with experience in property and casualty insurance or motor vehicle insurance as determined by the Chief Financial Officer,” the statute reads.
The CFO also has the power to remove board members for misconduct, neglect of duty, or if they are employed by a company that becomes insolvent.
In the latest appointments, Patronis reappointed board Chair Kimberly Blackburn, vice president of products and compliance for Florida Farm Bureau Insurance, and named Benjamin Treuil, a vice president at Frontline Insurance, to replace Pamela Matthews of USAA Insurance. Patronis also appointed Glenn Ritchie, a State Farm Insurance agent, to replace Paula Lutes, a lawyer at State Farm.
However, Glenn Ritchie resigned shortly after his appointment due to an unexpected personal situation. He was replaced by Jon Ritchie, chief operating officer at American Integrity Insurance, a property insurer.
“With State Farm and USAA representatives off the FIGA board, it leaves the organization with little or no input from automobile insurance companies on how claims should be settled after an insolvency,” Patronis’ spokesman, Devin Galetta, said.
While auto insurance in Florida is dominated by major national carriers and few auto insurers have faced insolvency recently, it is not unheard of. Windhaven Insurance Co., which wrote non-standard auto coverage, entered liquidation proceedings in early 2020.
The current FIGA board members are:
- Kimberly Blackburn, Florida Farm Bureau; appointed 03/01/16 – reappointed 3/1/24
- Brent Brummer, Florida Family Insurance; appointed 02/22/23
- Charles Lydecker, Foundation Risk Partners brokerage; appointed 02/22/23
- Jon Ritchie, American Integrity Insurance; appointed 05/24/24
- Benjamin Treuil, Frontline Insurance; appointed 05/14/24
Additional names have been submitted for the remaining board positions, and Patronis may appoint more auto insurer representatives in the coming months.
“Our office will continue to put policyholders first, assess board needs, and make additional appointments accordingly. Stay tuned,” Patronis’ spokesman said.
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