Guarantee Insurance Deemed Insolvent; Delinquency Action Initiated

Guarantee Insurance Co. doesn’t have enough funds to increase its reserves to required levels and is now insolvent, Florida Insurance Commissioner David Altmaier said on Friday. And contributing to the shortfall is what Altmaier called the illegal diversion of more than $15 million from GIC to its majority owner, Steven Mariano. An independent actuary determined that Guarantee must boost reserves by $42,426,547 to cover its liabilities, Altmaier said Friday in a letter to Florida’s Department of Financial Services. But its policyholder surplus is only $42,189,770, leaving the ...