TALLAHASSEE, Fla., April 9 (UPI) -- Northern Capital Insurance, a company with 70,000 homeowner policies in Florida, is too broke to continue, the state's insurance regulator said.
State Insurance Commissioner Kevin McCarty said Northern Capital, a business less than 4 years old, was insolvent, leaving thousands without insurance two months before the start of the hurricane season, The Miami Herald reported Friday.
A year ago, the company was listed by Inc. Magazine at the top of its list of "fastest growing" private companies.
Currently, the state's insurance regulators said the company has less than $4 million in reserves.
In 2009, 50 out of 70 of the state's insurance companies ended the year with losses on their insurance businesses with 31 ending the year with less in reserves than at the end of 2008, the newspaper said.
The 70,000 Northern Capital policy owners had the option of finding a new private company or signing up for the state-run Citizens Property Insurance, the Herald said.