FedNat Insurance Company ("FedNat") was declared insolvent and placed into liquidation by a Florida court on September 27, 2022. The CONSENT ORDER APPOINTING THE FLORIDA DEPARTMENT OF FINANCIAL SERVICES AS RECEIVER OF FEDNAT INSURANCE COMPANY FOR PURPOSES OF LIQUIDATION, INJUNCTION, AND NOTICE OF AUTOMATIC STAY may be viewed here. The Liquidation Order triggered TPCIGA's statutory obligations to Texas policyholders and claimants under TEX. INS. CODE chapter 462, known as the Guaranty Act.  

The Liquidation Order permanently enjoins all persons, including policyholders and creditors, from instituting or further prosecuting any action against FedNat except within the liquidation proceedings. In addition, the Texas Guaranty Act imposes an automatic six-month stay of proceedings in any case in which FedNat was obligated to defend a party, effective until March 27, 2023.



Prior to insolvency, FedNat entered into an Assumption Reinsurance Agreement with SureChoice Underwriters Insurance Exchange. Under the agreement, SureChoice offered replacement coverage to FedNat policyholders beginning July 1, 2022. All policyholders who already accepted the replacement coverage will not be affected by the FedNat insolvency. SureChoice policies are not cancelled by the Liquidation Order.  

If any FedNat policyholder wishes to accept the SureChoice offer, you may still do so prior to October 27, 2022. If you choose to accept the replacement coverage, your new SureChoice coverage will begin immediately after your FedNat policy cancels on October 27, 2022. Policyholders with questions about SureChoice policies may contact its customer service at (888) 346-6907.


All FedNat policies not assumed by SureChoice or otherwise replaced are cancelled by the Liquidation Order at 12:01 a.m. on October 27, 2022, the thirtieth day following the effective date of the Order. The Liquidation Order also cancels all policies issued by FedNat's former subsidiary, Maison Insurance Company, at 12:01 a.m. on October 27, 2022. Please contact your insurance agent or financial adviser immediately about securing other insurance.


The liquidation of FedNat does not affect FedNat policies previously assumed by Monarch Insurance Company. Additionally, flood policies administered by FedNat but issued under Federal law are not cancelled by the Liquidation Order. Those policies will be transferred to a new policy administrator. Contact National Flood Service Customer Service at (800) 219-3102 for information or (800) 759-8656 for existing flood claims.


Report new claims to the Florida receiver as follows:

325 John Knox Road, Atrium Building, Suite 101, Tallahassee, FL 32303

Call the receiver's office at (800) 882-3054 for assistance.

TPCIGA is working with the Florida receiver to arrange for transfer of the existing Texas claims to TPCIGA for handling. Policyholders and claimants are requested to forgo contacting TPCIGA on non-hardship matters for several weeks to allow sufficient time for the file transfer and initial review. TPCIGA will be unable to discuss the status of pending claims until the files have been transferred.  

If you have insurance available through any carrier other than FedNat, that insurance is now primary, and you should contact your carrier to make a claim. All forms of other available insurance must be exhausted before TPCIGA can consider payment of your claim.  


Any claims for unearned premium will be processed as soon as possible after TPCIGA receives all necessary financial information from the receiver. It is not necessary to file a claim with TPCIGA for your unearned premium.  


Litigation against FedNat is permanently enjoined by the Liquidation Order. This means suits directly against FedNat may not proceed. Any pending third-party lawsuit in which FedNat is obligated to defend a party is automatically stayed for six months from the date of the Liquidation Order, or until March 27, 2023, pursuant to TEX. INS. CODE §462.309. The statute of limitations is not tolled by the automatic stay.


TPCIGA is not bound by a settlement or release entered into by FedNat or its insureds, and such a settlement is not evidence of liability or damages against TPCIGA or an insured. TEX. INS. CODE §462.303. TPCIGA is obligated to review all claims to determine the extent to which they may be payable under the Guaranty Act.


The Florida Department of Financial Services is the appointed receiver responsible for winding up the affairs of FedNat through its Rehabilitation and Liquidation Division. You may email the Florida receiver at, call (800) 882-3054 or (852) 413-3132, or visit its website at

The deadline for filing claims with the liquidation estate is September 27, 2023.

Information as of 01/03/2023

FedNat Insurance Company


Information on this site is not legal advice and is not intended to be a comprehensive statement of the law or of the TPCIGA's policies and procedures.  References to the laws of any jurisdiction are for informational purposes only and are not a substitute for the official version of a statute. TPCIGA makes no warranty as to the accuracy or reliability of the content of this website or other related websites.  

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