people’s trust insurance company · living trust and one percent ... state title mitchell...
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EXAMINATION REPORT
OF
PEOPLE’S TRUST INSURANCE COMPANY
NAIC Company Code: 13125
DEERFIELD BEACH, FLORIDA
as of December 31, 2015
BY THE
FLORIDA OFFICE OF INSURANCE REGULATION
TABLE OF CONTENTS
LETTER OF TRANSMITTAL ........................................................................................................... -
SCOPE OF EXAMINATION ....................................................................................................... 1
SUMMARY OF SIGNIFICANT FINDINGS ................................................................................. 2
CURRENT EXAMINATION FINDINGS ............................................................................................ 2 PRIOR EXAMINATION FINDINGS ................................................................................................. 2
COMPANY HISTORY ................................................................................................................ 2
GENERAL ................................................................................................................................ 2 DIVIDENDS .............................................................................................................................. 3 CAPITAL STOCK AND CAPITAL CONTRIBUTIONS .......................................................................... 3 SURPLUS NOTES ..................................................................................................................... 3 ACQUISITIONS, MERGERS, DISPOSALS, DISSOLUTIONS AND PURCHASE OR SALES THROUGH
REINSURANCE ......................................................................................................................... 3
CORPORATE RECORDS ......................................................................................................... 4
CONFLICT OF INTEREST ............................................................................................................ 4
MANAGEMENT AND CONTROL .............................................................................................. 4
MANAGEMENT ......................................................................................................................... 4
DIRECTORS .............................................................................................................................. 5
SENIOR OFFICERS .................................................................................................................. 5
AFFILIATED COMPANIES ........................................................................................................... 6
SIMPLIFIED ORGANIZATIONAL CHART ................................................................................ 7
MANAGING GENERAL AGENCY CONTRACT ................................................................................. 8 MANAGEMENT SERVICES AGREEMENT ...................................................................................... 8 SERVICES AGREEMENT ............................................................................................................ 8 COST ALLOCATION AGREEMENT ............................................................................................... 9
TERRITORY AND PLAN OF OPERATIONS ............................................................................. 9
TREATMENT OF POLICYHOLDERS .............................................................................................. 9
REINSURANCE ......................................................................................................................... 9
REINSURANCE ASSUMED .......................................................................................................... 9 REINSURANCE CEDED .............................................................................................................10
ACCOUNTS AND RECORDS ..................................................................................................10
MANAGEMENT AGREEMENT .....................................................................................................10 COMMITMENT AGREEMENT ......................................................................................................11 DC ADVISORY CONSULTING SERVICES AGREEMENT .................................................................11 INSTITUTIONAL MASTER CUSTODY AGREEMENT........................................................................11 BROKER SERVICES AGREEMENT ..............................................................................................11 INDEPENDENT ADJUSTER/ESTIMATOR SERVICES AGREEMENT ...................................................11 MASTER SERVICES AGREEMENT ..............................................................................................12 CLAIMS ADMINISTRATION AGREEMENT .....................................................................................12
INFORMATION TECHNOLOGY REPORT ...............................................................................12
STATUTORY DEPOSITS .........................................................................................................13
FINANCIAL STATEMENTS ......................................................................................................14
ASSETS ...................................................................................................................................15
LIABILITIES, SURPLUS AND OTHER FUNDS .......................................................................16
STATEMENT OF INCOME AND CAPITAL AND SURPLUS ACCOUNT .................................17
RECONCILIATION OF CAPITAL AND SURPLUS...................................................................18
COMMENTS ON FINANCIAL STATEMENTS ..........................................................................19
LIABILITIES .............................................................................................................................19 CAPITAL AND SURPLUS ...........................................................................................................19
SUBSEQUENT EVENTS ..........................................................................................................20
SUMMARY OF RECOMMENDATIONS ....................................................................................21
LETTER OF CREDIT .................................................................................................................21
CONCLUSION ..........................................................................................................................22
February 3, 2017 David Altmaier Commissioner Office of Insurance Regulation State of Florida Tallahassee, Florida 32399-0326 Dear Commissioner: Pursuant to your instructions, in compliance with Section 624.316, Florida Statutes, Rule 69O-
138.005, Florida Administrative Code, and in accordance with the practices and procedures
promulgated by the National Association of Insurance Commissioners (NAIC), we have conducted
an examination as of December 31, 2015, of the financial condition and corporate affairs of
People’s Trust Insurance Company 18 People’s Trust Way
Deerfield Beach, FL 33441 hereinafter referred to as the “Company.” Such report of examination is herewith respectfully
submitted.
1
SCOPE OF EXAMINATION
This examination covered the period of January 1, 2011 through December 31, 2015 and
commenced with planning at the Florida Office of Insurance Regulation (Office) on July 19, 2016
to July 21, 2016. The fieldwork started on July 25, 2016, and concluded as of February 3, 2017.
The Company was last examined on a limited-scope basis by representatives of the Office. The
last full-scope examination covered the period of January 1, 2010, through December 31, 2010.
The examination was a single state examination conducted in accordance with the NAIC Financial
Condition Examiners Handbook. The Handbook requires that the examination be planned and
performed to evaluate the financial condition, assess corporate governance, identify current and
prospective risks of the Company, and evaluate system controls and procedures used to mitigate
those risks. An examination also includes identifying and evaluating significant risks that could
cause an insurer’s surplus to be materially misstated both currently and prospectively.
All accounts and activities of the Company were considered in accordance with the risk-focused
examination process. This may include assessing significant estimates made by management
and evaluating management’s compliance with Statements of Statutory Accounting Principles
(SSAP).
This examination report includes significant findings of fact, as mentioned in Section 624.319,
Florida Statutes, and general information about the insurer and its financial condition. There may
be other items identified during the examination that, due to their nature (for example, subjective
conclusions or proprietary information), are not included within the examination report but
separately communicated to other regulators and/or the Company.
2
SUMMARY OF SIGNIFICANT FINDINGS
Current Examination Findings
The following is a summary of material adverse findings, significant non-compliance findings or
material changes in the financial statements.
Letter of Credit
The Company was not in compliance with Rule 69O-144.005 6(d)(2) and (e)(1), Florida
Administrative Code, as the Amlin Letter of Credit did not contain the Evergreen Clause requiring
no less than sixty (60) days notice prior to expiration date or nonrenewal, nor did it contain the
requirement that the agreement be governed by the laws of the State of Florida.
Prior Examination Findings
There were no findings, exceptions, or corrective action to be taken by the Company for the
examination as of December 31, 2010.
COMPANY HISTORY
General
The Company was incorporated in Florida on January 17, 2008, and commenced business on
March 6, 2008.
The Company was authorized to transact insurance in Florida on March 6, 2008,
and is currently authorized for the following coverage(s) as of December 31, 2015:
Homeowners Multiple Peril Fire Allied Lines Other Liability
3
Dividends
The Company did not declare or pay any dividends during the period of this examination.
Capital Stock and Capital Contributions
As of December 31, 2015, the Company’s capitalization was as follows:
Number of authorized common capital shares 1,000,000
Number of shares issued and outstanding 1,000,000
Total common capital stock $1,000,000
Par value per share $1.00
Control of the Company was maintained by its parent, People’s Trust Holdings, LLC (PTH), which
owned one hundred percent (100%) of the stock issued by the Company. PTH in turn was ninety-
nine percent (99%) owned by George W. Schaeffer as sole trustee of the George W. Schaeffer
Living Trust and one percent (1%) by GWS 2, Inc. PTH contributed $31.9 million in cash to the
Company as of December 31, 2015.
Surplus Notes
The Company issued surplus notes to PTH in the amounts of $12.0 million on September 20,
2012, $2.0 million on August 17, 2013, $15.0 million on February 28, 2014, and $10.0 million and
$15.0 million on February 18, 2015. All surplus notes earn interest at six percent (6%) per annum
with no stated maturity. As of December 31, 2015, the Company did not request nor did the Office
approve interest payments on principal surplus notes, and no payments were accrued or paid.
Acquisitions, Mergers, Disposals, Dissolutions and Purchase or Sales through
Reinsurance
The Company had no acquisitions, mergers, disposals, dissolutions and purchase or sales
through reinsurance during the period of this examination.
4
CORPORATE RECORDS
The recorded minutes of the Shareholder(s), Board of Directors (Board) and certain internal
committees were reviewed for the period under examination. The recorded minutes of the Board
documented its meetings and approval of Company transactions and events, in compliance with
the NAIC Financial Condition Examiners Handbook adopted by Rule 69O-138.001, Florida
Administrative Code, including the authorization of investments, as required by Section 625.304,
Florida Statutes.
Conflict of Interest
The Company adopted a policy statement requiring periodic disclosure of conflicts of interest in
accordance with the NAIC Financial Condition Examiners Handbook adopted by Rule 69O-
138.001, Florida Administrative Code.
MANAGEMENT AND CONTROL
Management
The annual shareholder meeting for the election of directors was held in accordance with Section
628.231, Florida Statutes. Directors serving as of December 31, 2015, are shown on the following
page.
5
Directors
Name City, State Principal Occupation
George William Schaeffer Boca Raton, Florida President and Chief
Executive Officer, People’s
Trust Insurance Company
Adam Lawrence Frankel Delray Beach, Florida Director, People’s Trust
Insurance Company
Stephen Alphonso Giliotti West Palm Beach, Florida Director, People’s Trust
Insurance Company
Mitchell Frederick Politzer (a) West Palm Beach, Florida Director, People’s Trust
Insurance Company
Gerald Arnold Levy (b) Boca Raton, Florida Director, People’s Trust
Insurance Company
(a) Resigned on December 31, 2016 as Director, and was replaced by Charles Thomas “Tom”
Gallagher III, appointed by the holding company as Director and Chief Operating Officer on February 1, 2017.
(b) Resigned on December 31, 2016, and was replaced by Adam Hasner on January 1, 2017.
In accordance with the Company’s bylaws, the Board appointed the following senior officers:
Senior Officers
Name City, State Title
Mitchell Frederick Politzer (c) West Palm Beach, Florida President
George William Schaeffer Boca Raton, Florida Chief Executive Officer
Steven Charles Martindale (d) Westerville, Ohio Chief Financial Officer
Brett Ross Frankel Delray Beach, Florida Vice President, Secretary,
and General Counsel
(c) Resigned as President on December 31, 2015, and George William Schaeffer was appointed
President. (d) Resigned on May 13, 2016, and was replaced by George Robert De Heer, immediately
thereafter.
6
The Company’s Board appointed several internal committees. Following were the principal
internal board committees and their members as of December 31, 2015:
Investment Committee
Name City, State Title
George William Schaeffer (1) Boca Raton, Florida Chief Executive Officer
Mitchell Frederick Politzer West Palm Beach, Florida President
1 Chairman
The Company maintained an audit committee, as required by Section 624.424(8) (c), Florida
Statutes.
Audit Committee
Name City, State Title
Gerald Arnold Levy (1) Boca Raton, Florida Director, People’s Trust Insurance Company
Steven Alphonso Giliotti West Palm Beach, Florida Director, People’s Trust Insurance Company
Adam Lawrence Frankel Delray Beach, Florida Director, People’s Trust Insurance Company
1 Chairman
Affiliated Companies
The most recent holding company registration statement was filed with the Office on March 31,
2016, as required by Section 628.801, Florida Statutes, and Rule 69O-143.046, Florida
Administrative Code.
A simplified organizational chart as of December 31, 2015, reflecting the holding company
system, is shown on the following page. Schedule Y of the Company’s 2015 annual statement
provided a list of all related companies of the holding company group.
7
People’s Trust Insurance Company
Simplified Organizational Chart
December 31, 2015
PEOPLE’S TRUST HOLDINGS,
LLC
(FL)
PEOPLE’S TRUST MGA, LLC
(FL)
100%
PEOPLE'S TRUST INSURANCE COMPANY
(FL)
100%
8
The following agreements were in effect between the Company and its affiliates:
Managing General Agency Contract
The Company entered into a Managing General Agency (MGA) Contract (Agreement) with its
affiliate, People's Trust MGA, LLC (PTMGA), effective February 1, 2008. Per the Agreement,
PTMGA provided sales, marketing, inspection, policy administration and claims administration
services for the Company. Per Exhibit B to the Agreement, inspection services were added
effective January 1, 2012. As compensation for the services provided, PTMGA retained a fee of
thirty percent (30%) of direct written premium. The Company paid $72,299,937 to PTMGA for
contractual services during 2015, which includes $15.2 million of PTMGA commission
forgiveness.
Management Services Agreement
The Company entered into a Management Services Agreement (Agreement) with its parent,
People's Trust Holdings (PTH), effective January 1, 2008. Per the Agreement, PTH provided
certain administrative services to the subsidiary, such as corporate organization and management
services, tax services, human resources, benefit plan management, insurance, and group
infrastructure and services. PTH receives a sum equal to one percent (1%) of the Company’s
direct written premiums. The Company paid PTH $2,782,335 for contractual services during
2015.
Services Agreement
The Company entered into a Services Agreement (Agreement) with Rapid Response Team, LLC
(RRT), effective September 14, 2009. Per the Agreement, the Company may issue assignments
to RRT for property loss assessment/mitigation, remediation and repair. RRT is owned by GS
TWO, LLC, which is owned by the same members of PTH. For the year ended December 31,
2015, the Company paid RRT $28,319,034 for services rendered.
9
Cost Allocation Agreement
The Company has a Cost Allocation Agreement with PTMGA, PTH and RRT, effective July 27,
2011, covering allocable expenses incurred by one or more companies conferring a direct benefit
on another company, a portion of which expense is properly allocable to the company receiving
the benefit. Any such balances or reimbursements shall be settled within ninety (90) days. The
Company reported a receivable of $12,130,424 from PTMGA consisting of fees offset by
expenses paid on behalf of PTMGA per the Cost Allocation Agreement by the Company.
TERRITORY AND PLAN OF OPERATIONS
The Company was authorized to transact insurance only in the State of Florida.
Treatment of Policyholders
The Company established procedures for handling written complaints in accordance with Section
626.9541(1)(i) 3.a., Florida Statutes. The Company maintained a claims procedure manual that
included detailed procedures for handling each type of claim in accordance with Section
626.9541(1)(j), Florida Statutes.
REINSURANCE
The reinsurance agreements reviewed complied with NAIC standards with respect to the standard
insolvency clause, arbitration clause, intermediary clause, transfer of risk, reporting and
settlement information deadlines.
Reinsurance Assumed
The Company did not assume any reinsurance during the period of this examination.
10
Reinsurance Ceded
The Company entered into ceded reinsurance agreements with several reinsurers, including DE
Re, Ltd., an affiliate company, to provide protection from losses due to concentration of risk, to
manage its operating leverage ratios and to limit the exposure to losses arising from catastrophic
events. The Company uses both quota share and excess of loss arrangements that require
reinsurers to share risks proportionally or to indemnify the Company on specified parts of certain
types of losses in excess of amounts arising from any one occurrence or event.
The Company was not in compliance with Rule 69O-144.005 6(d)(2) and (e)(1), Florida
Administrative Code, as the Amlin Letter of Credit did not contain the Evergreen Clause requiring
no less than sixty (60) days notice prior to expiration date or nonrenewal, nor did it contain the
requirement that the agreement be governed by the laws of the State of Florida.
ACCOUNTS AND RECORDS
The Company maintained its principal operational offices in Deerfield Beach, Florida. The
Company’s books and records were maintained by electronic processing equipment.
The Company and non-affiliates had the following agreements:
Management Agreement
The Company entered into a Management Agreement with Guggenheim Partners Investment
Management, LLC effective January 13, 2015, to receive investment advisory, management and
related services in accordance with certain Company investment guidelines. Under the terms of
the agreement the Company pays a quarterly management fee based on certain basis points of
the net asset value of the account as provided in the fee schedule.
11
Commitment Agreement
The Company entered into a Commitment Agreement with Guggenheim Private Debt Fund Note
Issuer 2.0, LLC (Issuer), effective September 24, 2015. The Company elected to commit $5.0
million in Limited Liability Company Interests in the Issuer to be allocated by mutual agreement
of the managing member and the investor. The fund was formed as a private investment vehicle
to invest in private debt investments, syndicated bank loans and other non-standard investments.
DC Advisory Consulting Services Agreement
The Company entered into DC Advisory Consulting Services Agreement with UBS Financial
Services Inc. effective January 20, 2015, to receive investment consulting services for the
Company’s 401k/Profit Sharing Plan. The Company pays an asset based fee of zero & five tenths
percent (0.5%) of assets on a quarterly basis.
Institutional Master Custody Agreement
The Company entered into an Institutional Master Custody Agreement with SunTrust Bank,
effective January 5, 2015, to maintain custody of the Company's cash, assets and securities. The
agreement was in compliance with Rule 69O-143.042, Florida Administrative Code.
Broker Services Agreement
The Company entered into a Broker Services Agreement with Guy Carpenter & Company, LLC,
effective January 13, 2015, to serve as a reinsurance intermediary for reinsurance brokering
services and the placement of the Company's reinsurance contracts.
Independent Adjuster/Estimator Services Agreement
The Company and PTMGA entered into an Independent Adjuster/Estimator Services Agreement
for Catastrophe Claims handling services with CNC Catastrophe & National Claims, Inc. (CNC),
effective May 27, 2015. CNC provided oversight and management of the Company's catastrophe-
12
related events and for year-round development, maintenance, coordination, and implementation
of catastrophe response efforts with the People's Trust Catastrophe Management Team.
Master Services Agreement
The Company entered into a Master Services Agreement with ISO Claims Partners (ISO),
effective August 7, 2015. ISO was compensated for fees and expenses annually at the beginning
of each year.
Claims Administration Agreement
The PTMGA entered into a Claims Administration Agreement with Burton Claims Service, Inc.
(Burton), effective April 6, 2015, for the adjusting and administration of the Company's claims.
Burton was compensated $750 per claim for services rendered, of which $500 was payable
through monthly billing and the remaining $250 was payable upon closing the claim.
INFORMATION TECHNOLOGY REPORT
Tracy Gates, CFE, CISA of Highland Clark, LLC, performed an evaluation of the information
technology and computer systems of the Company. Results of the evaluation were noted in the
Information Technology Report provided to the Company.
13
STATUTORY DEPOSITS
The following securities were deposited with the State of Florida as required by Section 624.411,
Florida Statutes:
State Description Par Value Market Value
FL Cash 800,000$ 800,000$
800,000$ 800,000$
-$ -$
-$ -$
800,000$ 800,000$
TOTAL FLORIDA DEPOSITS
TOTAL OTHER DEPOSITS
TOTAL SPECIAL DEPOSITS
14
FINANCIAL STATEMENTS
The examination does not attest to the fair presentation of the financial statements included
herein. If an adjustment is identified during the examination, the impact of such adjustment will
be documented separately following the Company’s financial statements. Financial statements,
as reported and filed by the Company with the Florida Office of Insurance Regulation, are reflected
on the following pages:
15
People’s Trust Insurance Company
Assets
December 31, 2015
Per Company Examination Per Examination
Adjustments
Bonds $161,503,489 $161,503,489
Stocks:
Preferred 1,617,067 1,617,067
Common 19,897,948 19,897,948
Cash and Short-Term Investments 9,445,595 9,445,595
Other investmented assets 7,417,094 7,417,094
Investment income due & accrued 1,495,335 1,495,335
Agents' Balances:
Uncollected premium 3,594,120 3,594,120
Deferred premium 17,593,153 17,593,153
Amounts recoverable from reinsurers 3,141,615 3,141,615
Other amounts receivable under reinsurance contracts 10,540,743 10,540,743
Current federal and foreign income income tax recoverable and interest 2,131,665 2,131,665
Net deferred tax asset 5,582,773 5,582,773
Receivable from parents, subsidiariesand affiliates 12,306,282 12,306,282
Aggregate write-in for other than invested assets 432,639 432,639
Totals $256,699,518 $256,699,518
16
People’s Trust Insurance Company
Liabilities, Surplus and Other Funds
December 31, 2015
Per Company Examination Per Examination
Adjustments
Losses $61,796,645 $61,796,645
Loss adjustment expenses 12,032,146 12,032,146
Other expenses 1,308,567 1,308,567
Taxes, licenses and fees 1,039,978 1,039,978
Unearned premium 66,926,287 66,926,287
Ceded reinsurance premiums payable 25,228,661 25,228,661
Payable to parent, subsidiaries and affiliates 451,229 451,229
Total Liabilities $168,783,513 $168,783,513
Common capital stock $1,000,000 $1,000,000
Surplus notes $54,000,000 $54,000,000
Gross paid in and contributed surplus 31,900,000 31,900,000
Unassigned funds (surplus) 1,016,005 1,016,005
Surplus as regards policyholders $87,916,005 $87,916,005
Total liabilities, surplus and other funds $256,699,518 $256,699,518
17
Peoples Trust Insurance Company
Statement of Income and Capital and Surplus Account
December 31, 2015
Underwriting Income
Premiums earned $139,053,634Deductions:
Losses incurred $85,008,768Loss expenses incurred 17,333,999Other underwriting expenses incurred 41,801,221Aggregate write-ins for underwriting deductions 0Total underwriting deductions $144,143,988
Net underwriting gain or (loss) ($5,090,354)
Investment Income
Net investment income earned $5,481,227Net realized capital gains or (losses) 1,468,030Net investment gain or (loss) $6,949,257
Other Income
Net gain or (loss) from agents' or premium balances charged off $0Finance and service charges not included in premiums 0Aggregate write-ins for miscellaneous income 0
Total other income $0
Net income before dividends to policyholders and before federal & foreign income taxes $1,858,903Dividends to policyholders 0Net Income, after dividends to policyholders, but before federal & foreign income taxes $1,858,903Federal & foreign income taxes (70,169)
Net Income $1,929,072
Capital and Surplus Account
Surplus as regards policyholders, December 31 prior year $89,337,086
Net Income $1,929,072Net unrealized capital gains or losses (1,639,533)Change in net deferred income tax (1,848,518)Change in non-admitted assets (50,000)Aggregate write-ins for gains and losses in surplus 187,897Change in surplus as regards policyholders for the year ($1,421,082)
Surplus as regards policyholders, December 31 current year $87,916,005
18
Peoples Trust Insurance Company
Reconciliation of Capital and Surplus
December 31, 2015
No adjustments were made to surplus as regards policyholders as a result of this examination.
Surplus as regards policyholders
December 31, 2010 per Examination $16,557,550
Gain in Surplus
Loss in Surplus
Net Income (loss) $13,617,008
Change in net unrealized capital gain (loss) ($678,159)
Change in net deferred income tax $4,373,994
Change in non-admitted assets $61,241
Change in surplus notes $54,000,000
Aggregate write-ins for gains and losses in surplus ($15,631)
Rounding $2
Total Gains and Losses $72,052,245 ($693,790)
Net Increase/(Decrease) in surplus as regards policyholders $71,358,455
Surplus as regards policyholders
December 31, 2015 per Examination $87,916,005
19
COMMENTS ON FINANCIAL STATEMENTS
Liabilities
Losses and Loss Adjustment Expenses
Derek P. Chapman, FCAS, MAAA, Merlinos & Associates, Inc., appointed by the Board, rendered
an opinion that the amounts carried in the balance sheet as of December 31, 2015, made a
reasonable provision for all unpaid loss and loss expense obligations of the Company under the
terms of its policies and agreements.
The Office’s consulting actuary, Michael Solomon, FCAS, MAAA, CERA, of The Actuarial
Advantage, Inc., reviewed the loss and loss adjustment expense work papers provided by the
Company, and he was in concurrence with this opinion.
Capital and Surplus
As of December 31, 2015, the amount of capital and surplus reported by the Company of
$87,916,005, exceeded the minimum of $14,075,508 as required by Section 624.408, Florida
Statutes.
20
SUBSEQUENT EVENTS
The Company experienced the following subsequent events after the examination date:
Mitch Politzer retired from the Company effective December 31, 2015. He later resigned as
Director effective December 31, 2016.
George Schaeffer was appointed as President upon Mitch Politzer's departure.
Steve Martindale resigned as Chief Financial Officer and was replaced by George De Heer
effective May 13, 2016. Mr. De Heer was also appointed as Treasurer.
Adam Hasner was appointed to the Board of Directors effective January 1, 2017. He resigned as
Chief Marketing Officer effective March 31, 2016.
Mark Bowsher changed positions from Vice President of Underwriting to Chief Field Operations
Officer.
Kathy Semanate resigned as Chief of Staff effective January 27, 2017. Tom Gallagher III, Chief
Operating Officer, will assume her responsibilities.
21
SUMMARY OF RECOMMENDATIONS
Letter of Credit
We recommend that the Company amend the Amlin Letter of Credit to comply with the provisions
of Rule 69O-144.005 6(d)(2) and (e)(1), Florida Administrative Code, to contain the Evergreen
Clause requiring no less than sixty (60) days notice prior to expiration date or nonrenewal and be
governed by the laws of the State of Florida.
22
CONCLUSION
The insurance examination practices and procedures as promulgated by the NAIC have been
followed in ascertaining the financial condition of People’s Trust Insurance Company as of
December 31, 2015, consistent with the insurance laws of the State of Florida.
Per examination annual financial statements, the Company’s surplus as regards policyholders
was $87,916,005, which exceeded the minimum of $14,075,508 required by Section 624.408,
Florida Statutes.
In addition to the undersigned, Mark Jaster, CFE, Examiner-In-Charge, Travis Harrison, CPA, and
Sam Hebert, Participating Examiners, of Highland Clark, LLC, also participated in the
examination. Members of the Office who participated in the examination include Jeffrey Rockwell,
MBA, Financial Examiner/Analyst Supervisor, Examination Manager, and Kyra Brown, APIR,
Financial Examiner/Analyst Supervisor, Participating Examiner. Additionally, Michael Solomon,
FCAS, MAAA, CERA, of The Actuarial Advantage, Inc., and Tracy Gates, CFE, CISA, IT
Specialist of Highland Clark, LLC, are recognized for participation in the examination.
Respectfully submitted,
Brian Sewell, CFE, MCM Chief Examiner Florida Office of Insurance Regulation