A month after being placed into rehabilitation, a Miami, Fla.-based insurance company and its subsidiary are to be liquidated.

Leon County Circuit Court Judge Charles A. Francis issued the order for First Commercial Insurance Co. and its subsidiary, First Commercial Transportation and Property Insurance Co.

FCIC wrote workers’ compensation, commercial auto, general liability and commercial multi-peril insurance policies in Florida and Georgia. FCTPIC wrote commercial auto insurance coverage in Florida.

Combined, the companies about 18,000 policies in-force, according to the Florida Department of Financial Services.

Since July 10, the department has served as the appointed receiver of both companies after both consented to a rehabilitation plan.

After being appointed as receiver, however, the department found that FCIS sold over 2,000 automobile service warranty policies not reflected in its books, records and financial statements, according to the department. The FLDFS said it is investigating this matter further, and by court order, all automobile service warranty policies written by FCIC were cancelled as of the date of liquidation, Aug. 24.

Alex Sink

All other policies are cancelled as of 12:01 a.m. on Sept. 23, unless otherwise terminated prior to that date, including about 550 commercial auto insurance coverage or “for hire” insurance policies written by FCTPIC and another 100 in-force policies written by FCIC for Georgia policyholders.

The FLDFS said any Floridian who has property insurance with FCIS should immediately contact their insurance agent to secure coverage with a new company.

“Given that this liquidation order comes in the middle of hurricane season, it is imperative that consumers who have property insurance with First Commercial immediately contact their agents to secure new coverage,” said Florida CFO Alex Sink said in a statement.  “Our department will continue working diligently to help make the transition as smooth as possible for Floridians.”