UNITED INSURANCE HOLDINGS CORP. FILES (8-K) Disclosing Other Events
Item 8.01 Other Events
On
("FSR") of
insurance subsidiary,
downgraded from "A" or "Exceptional," to "M" or "Moderate." The FSR of the
Company's insurance subsidiaries
The downgrade may, among other things, cause an inability for UPC to obtain
reinsurance coverage. It may also cause UPC's products to be unacceptable to
mortgage lenders and prevent agents from selling and servicing UPC products. The
Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan
Mortgage Corporation ("Freddie Mac") require that property insurance policies
for properties with a mortgage backed by Fannie Mae or Freddie Mac must be
written by a property insurance carrier meeting certain financial rating
requirements, and a FSR of "M" or "Moderate" does not qualify. However, Fannie
Mae and Freddie Mac each provide an exception to the financial rating
requirements if an insurer is covered by a reinsurer who assumes by endorsement
100% of the insurer's liability for any covered loss payable but unpaid by the
insurer for reason of insolvency.
As a result of Fannie Mae and Freddie Mac financial rating requirements and the
FSR downgrades, on
("FLOIR"), approved a reinsurance arrangement whereby
Insurance Corporation
effective through
required for the secondary mortgage market. Under the reinsurance arrangement,
Citizens will be responsible for losses in excess of covered claims as defined
in Section 631.54(4), Florida Statutes and only if the downgraded insurer
becomes insolvent. The Citizens reinsurance arrangement only covers
policies. As of
to participate in the reinsurance program.
UPC's policies in the Southeast states of
Carolina
business written in
arrangements, we are uncertain whether these arrangements are acceptable for
mortgages backed by Fannie Mae or Freddie Mac.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
UNITED INSURANCE HOLDINGS CORP.
B. Bradford Martz , Chief Financial Officer and President (principal financial officer and principal accounting officer)
Alleghany Corporation Reports 2022 Second Quarter Results – Notice
Q2 for Q2 2022 Financial Earnings Transcript 2022 (opens in new window)
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News