Determination of Common Managerial Control Prompts Resignations from Insurance Company Board of Directors

Three directors and an interim CFO resign from United Insurance Holdings Corp. after the Florida Office of Insurance Regulation finds affiliated relationships with Kingsway Amigo Insurance Company.
According to Margie Manning at the Tampa Bay Business Journal, the interm chief financial officer and three members of the board of directors of United Insurance Holdings Corporation (United Holdings) have resigned in the wake of a determination by the Florida Office of Insurance Regulation (FOIR) finding an affiliation between certain insurance companies based on common managerial control.

Hassan Baqar, former interim CFO, as well as former board members Gordon Pratt, Larry Swets Jr., and James Zuhkle, all submitted their resignations after the insurance regulators at FOIR decided that a subsidiary of United Holdings, United Property & Casualty Insurance Company (United Property & Casualty) was affiliated with Kingsway Amigo Insurance Company (Kingsway) in part because Swets is the president and chief executive officer of Kingsway's parent company, Kingsway Financial Services, Inc. (Kingsway Financial), and Pratt is chairman of the board of another Kingsway affiliate.[1]
Regulators said the affiliation required United Property & Casualty to file amended statements with the Office of Insurance Regulation and prohibited any transfer of assets of United Property & Casualty to Kingsway without prior approval, the filing said.[2]
According to a filing with the United States Securities and Exchange Commission, United Insurance Management, L.C., another subsidiary of United Holdings, also terminated a management agreement witha Delaware limited liability company known as 1347 Advisors, LLC (1347 Advisors). 1347 Advisors is a subsidiary of Kingsway Financial that "provided the services of an interim Chief Financial Officer to [United Holdings] and certain strategic consulting, corporate development, corporate finance, and actuarial services...".[3]

Read the full article:

1Regulators’ ruling prompts United Insurance shakeup, Margie Manning, Tampa Bay Business Journal, April 6, 2012.
2Regulators’ ruling..., id.
3United Insurance Holdings Corp., Form 8-K, March 30, 2012.

1 comment:

  1. Their resignation is only a mirror-image of their presumption for guilt. They should have faced the consequence of the dubious dealings they have had in that firm.