Insurance Commissioner Kevin McCarty responded in writing to the Heartland Institute’s criticism this week of OIR’s handling of the insolvency of Northern Capital Insurance Company.  The insurer was declared insolvent in May of this year, however OIR had earlier placed the company under financial supervision and had not made that information public.

The Commissioner is allowed by law to keep confidential any insurer under supervision, a move Mr. McCarty says is essential in hopes of digging any troubled company out of its negative position.

In a 2-page letter to Christian Camara, the Director of the Florida Office of the Heartland Institute, McCarty said, “If every supervision were made public, it would be unlikely a buyer or investor could be found during the supervision, and the Office would have no practical alternative but to send troubled companies directly to DFS for the initiation of receivership proceedings.”

In the case of Northern Capital Insurance Company, Mr. McCarty said the OIR determined that the company was financially troubled, but the Office had no proof of insolvency and in fact, had prospective investors and buyers.

Commissioner McCarty noted in his letter that Florida law “expressly authorizes” these confidential proceedings.

Here is a link to Mr. McCarty’s letter in its entirety: pdf Heartland Response Letter .