Depopulation Package Prepared by FAIA Heritage Insurance Co. 11/6/2012
What is the best way to explain policy differences to my policyholders? The renewal offered by Heritage Insurance should be similar to the coverage afforded under the assumed Citizens policy, but they will not be exactly the same. The below chart explains some of the differences. Current Citizens Citizens Renewal Heritage P&C Coverage B default 10% of Coverage C default 50% of Personal Liability up to $300,000 Optional 10% Sinkhole Loss Deductible Limited Fungi, Wet or Dry Rot, Yeast or Bacteria Permitted Incidental Occupancies; Allowed in Other Structures Loss Assessment Cosmetic or Aesthetic Damage to Floors; Subject to the, B and D limit of liability Structures Open to Air (Screened Enclosures, Cabanas etc.) Covered Coverage B default 2% of Coverage C default 25% of Personal Liability $100,000 Mandatory 10% Sinkhole Loss Deductible Limited Fungi, Wet or Dry Rot, Yeast or Bacteria are NOT Permitted Incidental Occupancies; Not allowed in Other Structures Loss Assessment are NOT Cosmetic or Aesthetic Damage to Floors; Subject to a $10,000 limit for, B and D Structures Open to Air (Screened Enclosures, Cabanas etc.) NOT Covered Coverage B default 10% of Coverage C default 50% of Personal Liability up to $300,000 Mandatory 10% Sinkhole Loss Deductible Limited Fungi, Wet or Dry Rot, Yeast or Bacteria Permitted Incidental Occupancies; Allowed in Other Structures Loss Assessment Cosmetic or Aesthetic Damage to Floors; Subject to a $10,000 limit for, B and D Structures Open to Air (Screened Enclosures, Cabanas etc.) NOT Covered
Mr. Jeff Grady Thank for the opportunity to address the FAIA and to give you a little information about Heritage. As a newly licensed Property and Casualty Insurance Company we are excited as we begin operations. The management team has been in and around this business all of our adult lives primarily focused on Florida property. Heritage will provide a stable market for residential property offering Homeowners, Condominium and Dwelling Fire policies on a voluntary basis through a network Independent Insurance Agents. The company was capitalized with over 24 million dollars and is located in downtown St. Petersburg, Florida. We have been putting talented insurance personnel to work and intend to employ over 80 professionals in the next two years. The company desires to keep outsourcing to an absolute minimum and will handle our own claims and underwriting. In an effort to deploy our capital we will initially participate in a small Depopulation from Citizens that will offer agents more commission and afford broader coverage. A comparison chart is attached along with some information about the management team. Our voluntary program will be our focus as Heritage grows. We will offer up to 500,000 liability protection and offer animal coverage, theft away from premises and increased limits on personal property. The current trend is to restrict policy coverage and offer fewer options; we believe that other policy forms serve that purpose. We have priced our product competitively, and although we realize Heritage is not a known entity today, our customer service and claim handling will win the business going forward. Here is a quick snap shot of key personal. Sincerely, Ernie Garateix EVP Heritage Insurance
CEO/President - Richard A. Widdicombe, CPCU, Mr. Widdicombe is an experienced, results-oriented senior insurance executive with excellent administrative and quantitative skills especially focused on property and casualty management. Mr. Widdicombe has a strong background with growing insurers and has served as President of three Florida Insurance carriers, Federated National Insurance Company, American Vehicle Insurance Company and People's Trust Insurance Company. Most recently, he served as Risk Manager/Reinsurance Purchaser for Homeowners Choice Property and Casualty Insurance Company. Mr. Widdicombe also served as Executive Vice President and Chief Operating Officer for Cypress Property Casualty Insurance Company in Jacksonville, Florida. Mr. Widdicombe was the Chief Executive Officer of 21st Century Holding Company, Inc., a Florida based, multi-state, NASDAQ-listed insurance organization consisting of two insurers, an insurance agency, a premium finance company and claims processing company. Prior to his service with 21st Century, Mr. Widdicombe was employed by Jardine-MacNeill/ISAC, Miami, Florida in various Management positions. Mr. Widdicombe further served on the Florida Office of Insurance Regulation's Initial Disaster Assessment Team. As president, Rich will be responsible for all aspects of the entity - fostering an environment for both top and bottom line growth. Planning: Creates annual operating plan that supports strategic direction set by the board and correlates with annual operating budgets. Submits annual plans to the president for approval and collaborates with president to develop strategies for achieving company vision. Management: oversight of the management team, evaluates staff's performance on regular basis. Position serves as spokesperson for the organization, assures that the company's mission, and programs are communicated with a strong positive image to various stakeholders. Stays current with trends within industry and anticipates future trends. CEO is responsible for the timely submission of quarterly and annual reports to the Office of Insurance Regulation, NAIC, and Demotech. The role of CEO is to protect organization assets with prudent risk management policies. Additionally, manages the collection and analysis of management reports to measure success of programs, and implement changes as appropriate Chief Financial Officer- Steven Rohde Stephen Rohde, Heritage s Chief Financial Officer, has 39 years of experience in the insurance industry. Prior to joining Heritage, Rohde was the CFO of People s Trust Insurance Company, Boca Raton, FL, for four years and the CFO of the Mutual Service Insurance Group(MSI), St. Paul, MN, for 13 years of his 20 year employment at MSI. Rohde started his career at IDS Financial Services, Minneapolis, MN, in 1973. Rohde has also served as an outside director and Audit Committee Chairman of Direct General Corporation, Nashville, TN and Lion Insurance Company, Holiday, FL. Rohde received his Bachelor s degree from the University of Wisconsin-Eau Claire.
The CFO will have significant insurance accounting and finance experience. The CFO will be responsible for developing internal financial systems and controls, oversight of payables and receivables, and other accounting duties. The CFO will be responsible for the preparation, and timely filing, of statutory financial statements with the Florida Office of Insurance Regulation, as well as the development of GAAP financial statements for all entities. The CFO will be responsible for oversight of vendors and auditing of their systems and controls to ensure their systems and controls are at least as good, if not better than, HPCI s. The CFO will also be responsible for making all statistical reporting and other financial data reporting to regulators and other entities, such as Insurance Services Office ( ISO ). Controller - Joseph R. Peiso, CPA, CPCU, ARe Mr. Peiso brings a wealth of insurance experience as former CFO of Sunz Insurance Holdings, LLC., CFO of United Insurance Holdings and senior manager of Dixon Odom PLLC in North Carolina. Joe began his professional career with Coopers & Lybrand, CPA after graduating from the University of Florida. Soon he went to work in the industry with American Bankers Insurance Company in Miami, Florida and later as Vice President of Finance for Transportation Casualty Insurance Company of Ft. Lauderdale, Florida. Mr. Peiso obtained his CPA early in career and has owned and operated his own company, in addition to roles at various companies in Florida and North Carolina. Joe was the Chief Financial Examiner for the North Carolina Department of Insurance where he managed a team of 20 accounting professionals scheduling and conducting statutory financial examinations of carriers with interests in North Carolina. Additionally, Mr. Peiso has regulatory experience assisting Special Deputy Supervisor in three cases working with the Florida Office of Insurance Regulation. Chief Operating Officer - Kent Linder After serving in the United States Marine Corps Reserves and graduating from the University of South Florida, Kent had a successful 13 year career in management with United Parcel Service. Kent began his insurance career in 1993 by opening his first retail agency in Orlando, Florida. He grew his company to 23 insurance agencies in seven Florida counties, employing over 90 insurance professionals. Kent developed innovative insurance products and introduced tax preparation services utilizing electronic filing. Kent sold his agencies in 1998 to 21st Century Holding Company (NASDAQ: FNHC) and became President of Federated Agency Group. He grew the agency business to 38 retail locations and rebranded it into FedUSA and directed the sale of the franchises, providing additional revenues to the parent company. Named Chief Operating Officer of 21st Century Holding Company in 2002, Kent was responsible for all operations including two Florida domiciled property and casualty insurance companies, taking the organization into several states and working to develop a successful Florida property program.
The COO will have significant insurance company operational experience and will be responsible for the day-to-day operations of HPCI and all affiliates. The position will be responsible for ensuring that key operational performance functions are maintained and improved. This includes claims operations, quality assurance, customer service, call center management and information technology. The COO will also be responsible for developing, implementing, and managing the program aspects of the annual budget in conjunction with the CFO and CEO. Executive Vice President - Ernie J. Garateix, CPCU Mr. Garateix s well-rounded insurance career includes claims, underwriting, operations, systems analyst, and Vice President of Operations. After graduating from Florida State, Ernie joined USF&G in the claim department, later promoted to managing call center operation. Mr. Garateix worked with USF&G from 1993-2000, obtained his MBA from University of Tampa in Management Information Technology and immediately began work as AVP of Information Technology at FCCI in Sarasota, Florida (2000-2007). He managed a team of developers and oversaw a number of software implementations and assisted in numerous multi-state projects. Ernie has spent the past five years as Vice President of Operations at American Integrity Insurance Group responsible for all backroom operations of the carrier. Additionally, he coordinates all rates and form implementations and worked with CEO on special projects. Mr. Garateix managed the Citizens assumption process from all sides, agent, claims and consumer. Ernie also developed a management information tool for internal users to the streamline reporting process. Responsible for day to day operations including the policy administration processes. Responsibilities include working with underwriting, customer service, call center, and reports. EVP will work closely with CFO, COO, and President to maintain accuracy of system generated reports and be responsible for achieving the production goals. EVP will spearhead the move to bring all aspects of our underwriting, customer service and call center in house in short order. Director of Claims - Paul Neilson Paul began his insurance career after graduating from Wayne State in Michigan and spent 16 years with Aetna Life & Casualty, in Tampa, Florida in various positions including serving as quality assurance manager. Paul joined Travelers Insurance Company in Tampa, Florida where he spent 14 years as Claims Manager, planning and directing all aspects of personal and commercial property lines, developing new benchmarks for litigation management, re inspection program and quality assurance. Paul served as Claims Manager for a new carrier, Homeowners choice and hired, developed and wrote procedures for the carrier. Paul is a voting member of the Department of Financial Services, Division of Fraud, Property & Casualty Task Force. He is Member/Presenter Property Loss Research Bureau (PLRB), Past Member/Presenter of the Florida Advisory Committee on Arson Prevention (FACAP). Also, Mr. Neilson still serves as a member of the Florida Initial Disaster Assessment Team.
The Director of Claims is responsible for overseeing the entire claims function daily and catastrophe claims management. The Director is responsible for developing and implementing the Company s claims handling guidelines and procedures, and making certain to file all required documentation with regulators and others such as a copy of HPCI s Catastrophe (Claims Handling) Plan and details on the Company s Special Investigation Unit ( SIU ). The Director will be responsible for managing the HPCI s claims third party administrator, and making certain that the administrator is following HPCI s claims guidelines through daily oversight and quality control audits and reviews of files. Underwriting Manager Rachael Waguespack Rachael Waguespack has over 30 years of experience in the Insurance Industry, with the past 20 years in Florida. Rachael has worked in both captive and independent agencies at the CSR and Agent level. Rachael began her insurance career in Louisiana working as a CSR for a State Farm Agent in 1981. She worked as a captive agent for Aetna Casualty & Surety from 1988 until 1990, when they moved their branch office to Florida. She then worked as an Agent in an Independent Agency until 1992, when Aetna lured her to Florida to become an Underwriter. Rachael worked as an Underwriter for Aetna and following the sale of their Property & Casualty business to Travelers, she continued to work for Travelers/First Floridian as an Underwriter and Project Underwriter. Rachael has also worked in claims and was a Claim Representative and Team Lead with Travelers/First Floridian from 2000 through 2003. She was as an Independent Adjuster for Cunningham Lindsay from 2003 through 2006. Her claims experience has given Rachael an appreciation of how important it is to properly insure risks in order to adequately protect the insured and have a profitable, stable book of business for the agency and company. Rachael returned to underwriting in 2006 as an Underwriting Supervisor, working for CGI in a Third party environment. She was hired by a former client, Universal North America in 2010 as an Underwriting Manager. Rachael has managed a department of Underwriters in several locations handling multiple states. Many of you will recognize her name from having worked with her in the Florida market during the past twenty years.