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`IN THE COUNTY COURT OF THE NINTH JUDICIAL CIRCUIT
`IN AND FOR ORANGE COUNTY, FLORIDA
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`CASE NO: 2022-CC-2663
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`LESA THOMAS,
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`Plaintiff(s),
`vs.
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`AVATAR PROPERTY & CASUALTY
`INSURANCE COMPANY,
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`Defendant.
`___________________________________/
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`NOTICE OF FILING ORDER OF LIQUIDATION, INJUNCTION, AND AUTOMATIC
`STAY AS TO AVATAR PROPERTY & CASUALTY INSURANCE COMPANY
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`1. Avatar Property & Casualty Insurance Company by and through the undersigned, gives
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`notice and files a copy of the Consent Order Appointing the Florida Department of Financial
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`Services as Receiver of Avatar Property & Casualty Insurance Company for purposes of
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`Liquidation, Injunction, and Notice of Automatic Stay (hereinafter “Order”), as entered on March
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`14, 2022.
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`2. The Plaintiff's and the Court's attention is directed to Paragraph 46 of the Order which
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`reads in pertinent part:
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`Notice is hereby given that, pursuant to section 631.041(1), Florida
`Statutes, the filing of the Department's petition herein operates an
`automatic stay applicable to all persons and entities... which
`prohibits
`the commencement or continuation of
`judicial,
`administrative, or other action or proceeding against the insurer or
`against its assets or any part thereof.
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`CERTIFICATE OF SERVICE
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` WE HEREBY CERTIFY that a true and correct copy of the foregoing was served via
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`Florida Courts E-Filing Portal, pursuant to Fla. R. Jud. Admin. 2.516(b)(1), on the 21st day of
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`March, 2022 to: Craig D. Rolle, Esq. PZ Law Firm, P.A. 611 North Hyer Avenue Orlando,
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`Florida 32803, craig@pzlawfirm.com; info@pzlawfirm.com.
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`Avatar Property & Casualty Insurance Company
`1101 E. Cumberland Avenue
`Tampa, Florida 33602
`Telephone: (813) 437‐6514
`eservice@avatarins.com
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`/s/ Natoya F. Abel, Esq.
`Natoya F. Abel, Esq.
`Florida Bar No. 068092
`Email: natoyaa@avatarins.com
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`FILED
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` MAR 1.1 2022
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`NaaSOETION
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`OFFICE OF INSURANCE REGULATION
`
`DAVID ALTMAIER
`COMMISSIONER
`
`IN THE MATTEROF:
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`CASE NO.: 293051-22-CO
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`AVATAR PROPERTY & CASUALTY
`INSURANCE COMPANY
`/
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`CONSENT ORDER FOR PUBLIC ADMINISTRATIVE SUPERVISION
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`THIS CAUSE came on for consideration upon review of the financial condition of
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`AVATAR PROPERTY & CASUALTY INSURANCE COMPANY (“AVATAR”) by the
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`FLORIDA OFFICE OF INSURANCE REGULATION (“OFFICE”) during the period since
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`referring AVATARfor receivership proceedings. After a complete review of the entire record, and
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`upon consideration thereof, and being otherwise fully advised in the premises, the OFFICE hereby
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`finds as follows:
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`1.
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`2.
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`The OFFICE has jurisdiction over the subject matter and the parties herein.
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`AVATAR is a domestic property and casualty insurer authorized to transact
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`insurance business in the state of Florida pursuant to a Certificate of Authority issued by the
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`OFFICE,pursuant to Chapter 624, Part ITI, Florida Statutes.
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`3,
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`On March 2, 2022, the OFFICE referred AVATAR to the Department of Financial
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`Services Division of Rehabilitation and Liquidation (the “Division”)
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`so that delinquency
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`proceedings could beinitiated. (See Exhibit “A”).
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`4,
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`On March 3, 2022, the Division filed its Petition for Consent Order Appointing the
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`Florida Department of Financial Services as Receiver of Avatar Property & Casualty Insurance
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`Page 1 of 7
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`Company for Purposes ofLiquidation, Injunction, and Notice ofAutomatic Stay (“Petition”) with
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`the Second Judicial Circuit Court, In Leon County, Florida (“Court”). As of the date of this Consent
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`Order, the Court has yetto rule on the Division’s Petition.
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`5.
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`AVATAR has been cooperative with the OFFICE and agrees to be placed under
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`administrative supervision for a period of 120 days from the date of execution ofthis Consent Order
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`or until placed into receivership, whichever comesfirst, and to be subject to the provisions of
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`Sections 624.80-.87, Florida Statutes, as if an order were issued by the OFFICE. Such
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`administrative supervision is necessary to effectuate a smooth transition of the company to
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`receivership.
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`6.
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`AVATAR maynot conductthe following activities during the period of supervision,
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`withoutprior approval by the OFFICE,as set forth in Section 624.83, Florida Statutes:
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`a. Dispose of, convey, or encumber any ofits assets or its business in force;
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`b. Withdraw any ofits bank accounts;
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`c. Lend any ofits funds;
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`d.
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`Invest any of its funds;
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`e. Transfer any ofits property;
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`f.
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`Incur any debt, obligation, or liability;
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`g. Merge or consolidate with another company;
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`h. Enter into any new reinsurance contractor treaty;
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`i. Terminate, surrender, forfeit, convert, or lapse any insurance policy, certificate, or
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`contract of insurance, except for nonpayment of premiumsdue;
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`j. Release, pay, or refund premium deposits, accrued cash or loan values, or other
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`reserves on any insurance policy or certificate; or
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`k. Make any material change in management.
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`Page 2 of 7
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`7.
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`AVATAR hereby knowingly and voluntarily waives the requirement of written
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`notice under Section 624.81(1), Florida Statutes, and agrees that any timelines outlined in this
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`Consent Order will be binding, notwithstanding any timelines provided for in Section 624.81,
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`Florida Statutes.
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`8.
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`9.
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`AVATAR isnot currently writing business.
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`AVATAR shall not enter into any new or amend any existing agreements with any
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`affiliate, as defined in Section 631.011(1), Florida Statutes, without prior written consent of the
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`OFFICE.
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`10.|AVATAR shallnot waste assets or expend funds in excess of $10,000 United States
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`Dollars (“USD”), other than in the ordinary course of business, without the prior written consent of
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`the OFFICE.
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`If, after approval of a transaction over $10,000 has been granted by the OFFICE,the
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`OFFICE becomes aware of additional facts or circumstances that materially affect such approval,
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`the OFFICE reserves the right to require such corrective action as it may deem necessary or
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`advisable. Transactions in the ordinary course of business shall include, but not be limited to,
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`payment of claims or settlement of disputed or litigated claims. AVATAR need not obtain prior
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`written approval for payment ofclaims or settlement of disputed orlitigated claims over the amount
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`of $10,000 USD; however, the OFFICE mayretrospectively review such payments.
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`11.
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`The OFFICE may appoint a Deputy Supervisor pursuant to Section 624.87, Florida
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`Statutes. Such Deputy Supervisor shall represent the OFFICE and shall be under the control of the
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`OFFICE.
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`12.
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`AVATAR agrees that
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`the OFFICE and the Department of Financial Services
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`(“Department”) may have examiners or other designees present at the offices of AVATAR to obtain
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`independent information. Further, the OFFICE may have examiners or other designees to supervise
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`activities, verify transactions, verify the conditions and status of AVATAR, and perform any other
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`Page 3 of 7
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`duty as designated by the OFFICE. AVATAR shall cooperate with and facilitate the presence and
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`work of such examiners or designees.
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`13.|Administrative supervision is confidential as provided in Section 624.82, Florida
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`Statutes, unless otherwise specified within that statute. The OFFICE finds, and AVATAR agrees,
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`that it is in the best interest of its policyholders and the public to make this Consent Order public
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`pursuant to Section 624.82(4), Florida Statutes. This finding does not affect the confidentiality of
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`any other orders, notices, correspondence,reports, records, or other information in the possession of
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`the OFFICErelating to the administrative supervision of AVATAR pursuant to Section 624.82(1),
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`Florida Statutes.
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`14. AVATAR affirmsthat all explanations, representations, statements, and documents
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`provided to the OFFICE in connection with this Consent Order, including all attachments and
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`supplements thereto, are true and correct and are material to the issuance of this Consent Order.
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`15. AVATAR expressly waives its rights to a hearing in this matter, the making of
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`findings of fact and conclusions of law by the OFFICE,andall further and other proceedings herein
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`to which it may be entitled by law or rules of the OFFICE. AVATAR hereby knowingly and
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`voluntarily waives all rights to challenge or contest this Consent Order in any forum available toit,
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`now or in the future, including the rights to any administrative proceeding, state or federal court
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`action, or any appeal.
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`16. AVATAR acknowledges that the execution of this Consent Order does not prohibit
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`other administrative action upon the Certificate of Authority of AVATAR deemed appropriate by
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`the OFFICE in accordance with the Florida Insurance Code or with Sections 120.569(2)(n),
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`120.60(6), and 631.031, Florida Statutes.
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`17. Any prior orders, consent orders, or corrective action plans that AVATAR has
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`entered into with the OFFICEprior to the issuance of this Consent Order, shall remain in full force
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`Page 4 of 7
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`and effect for AVATAR, except where provisions of such orders, consent orders, or corrective
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`action plans have expired; have been superseded by subsequent orders, consentorders, or corrective
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`action plans;or are inconsistent with this Consent Order.
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`18. Any deadlines, reporting requirements, other provisions, or requirements set forth in
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`this Consent Order may be altered or terminated by written approval of the OFFICE. Such written
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`approval by the OFFICEis subject to statutory or administrative regulation limitations.
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`19. AVATAR agrees that it has entered into this Consent Order voluntarily, without
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`coercion from the OFFICE,or any agent, employee, or designee of the OFFICE,and that AVATAR
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`has obtained legal counselprior to entering into this Consent Order.
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`20.
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`The parties agree that this Consent Order shall be deemed to be executed when the
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`OFFICE has signed and docketed a copy of this Consent Order bearing the signature of the
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`authorized representative of AVATAR, notwithstanding the fact that the copy may have been
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`transmitted to the OFFICE electronically. Further, AVATAR agrees that the signature ofits
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`authorized representative as affixed to this Consent Order shall be underthe seal of a Notary Public.
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`WHEREFORE,
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`the
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`agreement between AVATAR PROPERTY & CASUALTY
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`INSURANCE COMPANYand the FLORIDA OFFICE OF INSURANCE REGULATION,the
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`terms and conditions of which are set forth above, is APPROVED. FURTHER, all terms and
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`conditions contained herein to place AVATAR PROPERTY & CASUALTY INSURANCE
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`COMPANYin administrative supervision are hereby ORDERED.
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`DONE and ORDEREDthis _(/
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`day of Mare
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`2022.
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`rf Daesick Atrnepur
`ae
`avid Altmaier, Commissioner
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`faa», Office of Insurance Regulation Page 5 of 7
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`By execution hereof, AVATAR PROPERTY & CASUALTY INSURANCE COMPANY
`consents to entry of this Consent Order, agrees without reservation to all of the above terms and
`conditions, and shall be bound byall provisions herein. The undersigned represents that they have
`the authority to bind AVATAR PROPERTY & CASUALTY INSURANCE COMPANYtothe
`terms and conditions of this Consent Order. The undersignedalsocertifies that they have provided
`the signature below voluntarily and without coercion, based upon the assistance of legal counsel for
`AVATAR PROPERTY & CASUALTY INSURANCE COMPANY.
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`AVATAR PROPERTY & CASUALTY INSURANCE
`COMPANY
`
`LlCoat, CPLa
`By:
`Name: _Hitesh P. Adhia
`(Please type or print)
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`[Corporate Seal]
`
`Title: President
`
`Date: March 11, 2022
`STATE OF+/onidé
`countyoF /4)))shormgh
`The foregoing instrument was acknowledged before me by means of [physical presence
`or Cl online notarization,this_})
`“day of H4rCh
`2022, by Hotesn Aclhia
`.
`(nameofperson)
`
`as “Yresdent_ __ forFearPrsperby_¥-(Pesalty
`
`th
`
`.
`
`.
`
`(type of authority; e.g., officer, trustee, attorney in fact)
`
`(company name)
`
`=== ‘ae (Print, Type or Stamp Commissioned NameofNotary)
`
`Se,Wg
`EMMA R BOX
`Ne,
`~ Notary Public-State of Florida
`*= Commission # GG 964977
`Jwanes My Coramission Expires
`fanant’
`March 03, 2024
`
`Personally Known V_ORProduced Identification
`Typeofidentification produced rsoncll knon AN)
`My Commission Expires Me rch 34,2024
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`Page 6 of 7
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`COPIES FURNISHED TO:
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`HITESH P. ADHIA, PRESIDENT/CHAIRMAN
`Avatar Property & Casualty Insurance Company
`101 E Cumberland Ave #300
`Tampa, Florida 33602
`Email: johnjrcpa@avatarins.com
`
`DAVID YON, ATTORNEY
`Radey Law Firm
`301 South Bronough Street, Suite 200
`Tallahassee, Florida 32301
`Email: dyon@radeylaw.com
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`VIRGINIA CHRISTY, DIRECTOR
`Florida Office of Insurance Regulation
`Property & Casualty Financial Oversight
`200 East Gaines Street
`Tallahassee, Florida 32399
`Email: virginia.christy@floir.com
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`ANOUSH ARAKALIAN BRANGACCIO, GENERAL COUNSEL
`Florida Office of Insurance Regulation
`200 East Gaines Street
`Tallahassee, Florida 32399
`Telephone: (850) 413-4116
`Email: anoush.brangaccio@floir.com
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`Page 7 of 7
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`Exhibit A
`
` JIMMY PATRONIS
`
`FINANCIAL SERVICES
`COMMISSION
`
`RON DESANTIS
`GOVERNOR
`
`CHIEF FINANCIAL OFFICER
`
`OFFICE OF INSURANCE REGULATION
`
`ASHLEY MOODY
`ATTORNEY GENERAL
`
`NICOLE “NIKKI” FRIED
`COMMISSIONER OF
`AGRICULTURE
`
`DAVID ALTMAIER
`COMMISSIONER
`
`March 2, 2022
`
`The Honorable Jimmy Patronis
`The Chief Financial Officer
`Department of Financial Services
`The Capitol, PL-11
`Tallahassee, FL 32399
`
`Re: Avatar Property & Casualty Insurance Company
`
`Dear Chief Financial Officer Patronis:
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`Please be advised that the Office of Insurance Regulation (the “Office”) has determined that one
`or more groundsexist for the initiation of delinquency proceedings, pursuant to Chapter 631,
`Florida Statutes, against the above-referenced company. As such, I am advising you of that
`determination and including herewith a consentto order of receivership signed by the company
`in which it admits thatit is insolvent, so that delinquency proceedings can beinitiated by the
`Division of Rehabilitation and Liquidation (“Division”).
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`OJR has worked closely with Avatar Property & Casualty Insurance Company(“Avatar”) to
`facilitate options for consumers so they have access to continuous coverage in the voluntary
`market. While no insurer has expressed an interest in providing coverageto all of Avatar’s
`policyholders, several insurers have expressed an interest in potentially providing coverage to
`some of Avatar’s policyholders through direct solicitation by their appointed agents.
`
`DAVID ALTMAIER * COMMISSIONER.
`200 EAST GAINES STREET * TALLAHASSEE, FLORIDA 32399-0305 © (850) 413-5914 + FAX (850) 488-3334
`WEBSITE: WWW.FLOIR.COM * EMAIL: DAVID.ALTMAIER@EFLOIR.COM
`
`Affirmative Action / Equal Opportunity Employer
`
`
`
`The Honorable Jimmy Patronis
`March 2, 2022
`Page 2
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`We appreciate the collaborative working relationship we have with the Division and look
`forward to working with you and yourstaff to facilitate continued access to coverage for the
`benefit of affected Floridians.
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`Sincerely,
`
`Dowie ALimsior
`
`David Altmaier, Commissioner
`Office of Insurance Regulation
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`Enclosure
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`ce:
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`John Maclver, General Counsel,
`Department of Financial Services
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`
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`CONSENT TO ORDER OF RECEIVERSHIP
`AVATAR PROPERTY & CASUALTY INSURANCE COMPANY
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`IT IS HEREBY AGREED TO AS FOLLOWS:
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`1. Avatar Property & Casualty Insurance Company (“Respondent”) is a Florida corporation
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`and is a domestic property and casualty insurer authorized to transact insurance businessin Florida
`and regulated by the Florida Office ofInsurance Regulation.
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`2. Respondent admits that grounds exist for the appointment of a Receiver of the company
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`for Rehabilitation or Liquidation, pursuant to Sections 631.051 and 631.061, Florida Statutes.
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`3. Respondent specifically admits that it is insolvent as that term is defined in Section
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`631.011(14), Florida Statutes.
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`4. Pursuant to Sections 631.051 and 631.061, Florida Statutes, Respondent consents through
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`a majority ofits directors to the entry of an Order appointing the Florida Department of Financial
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`Services, Division of Rehabilitation and Liquidation (hereinafter “Department”) as the Receiver
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`of Respondent and acknowledges that the Department may apply to the Court for an Order of
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`Rehabilitation or Liquidation. Respondent further agrees that the Department shall have the sole
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`discretion to determine the type of order to be sought and entered and consents to any injunctions
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`the receivership court, as defined by section 631.021, Florida Statutes, deems necessary and
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`appropriate. Respondent additionally agrees that the Department may,at its sole discretion, apply
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`to the Court for any additional orders regarding Respondent, and thatall such orders entered shall
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`be final when entered, with Respondent waiving any right to appeal such orders, including any
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`orderliquidating Respondent. The Resolution of the Board ofDirectors is attached as Attachment
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`A to this Consent.
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`5. Respondent acknowledgesthat it has executed this Consent to Order of Receivership
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`Page 1 of 2
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`voluntarily and of its own accord, having had the opportunity to consult counsel of its choosing,
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`and has not been threatened or coerced to execute this consent by the Department of Financial
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`Services, Florida Office of Insurance Regulation, or any other individualor entity.
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`By execution hereof, AVATAR PROPERTY & CASUALTY INSURANCE COMPANY
`consents to the appointment of the Department of Financial Services as receiver for purposes of
`Rehabilitation or Liquidation, agrees without reservation to all of the above terms and conditions,
`and shall be bound by all provisions herein. The undersigned represents that they have the
`authority to bind AVATAR PROPERTY & CASUALTY INSURANCE COMPANYto the terms
`and conditions of this Consent Order.
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`AVATAR PROPERTY & CASUALTY INSURANCE COMPANY
`
`¥ f¥oZ
`-
`
`Hitesh
`Print Name:
`
`Title:iMpanr_| Ch
`
`
`Date:
`“S/ 2/171
`
`{Corporate Seal]
`
`By:
`
`STATE OF {-\cpacdé
`COUNTY OF Ya\\sinacUony
`The foregoing instrument was acknowledged before me by means of [physical presence
`
`or (1 onlinenotarization, this 2-day of Macc,_2022,by AYLes AANA
`(name of person)
`as Yressclenk / Cherwemen
`for \.\
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`(type ofauthority; e.g., officer, trustee, attorney in ey
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`MMA R BOX |
`See, NotantPubile-State af Florida
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`Personally Known x OR Produced Identification
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`My Commission Expires
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`Page 2 of 2
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`RESOLUTION OF THE BOARD OF DIRECTORS OF
`AVATAR PROPERTY & CASUALTY INSURANCE COMPANY
`ATTACHMENT A
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`A telephonic meeting ofthe Board of Directors of Avatar Property & Casualty Insurance
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`Company(hereinafter "the Company") was held on February 28, 2022, for the sole purpose of
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`approving the following resolutions as follows:
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`RESOLVEDthat the majority of the current Directors on the Board of Directors consent to the
`referral of the Company by the Florida Office of Insurance Regulation to the Department of
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`Financial Services for delinquency proceedings under Chapter 631, Part I, Florida Statutes due to
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`the insolvency of the Companyas defined in Section 631.011(14), Florida Statutes.
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`FURTHER RESOLVEDthat the majority of the current Directors on the Board of Directors
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`consentto the entry of an Order of Rehabilitation and/or Liquidation of the Company.
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`FURTHER RESOLVED,that pursuant to Sections 631.051 and 631.061, Florida Statutes, the
`majority ofthe current Directors on the Board of Directors consent to the immediate appointment
`of the Florida Department of Financial Services, Division of Rehabilitation (hereinafter
`“Department”) as the Receiver of Company, without further notice or hearing, and waive any and
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`all rights to notice and hearing.
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`FURTHER RESOLVED,that the majority of the Directors waive any right to appeal any Order
`of Rehabilitation or Liquidation entered by the court and agrees that said Ordershall be final for
`the purposesoftriggering the Florida Insurance Guaranty Association “FIGA”pursuantto Section
`631.54(8), Florida Statutes.
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`FURTHER RESOLVED,that the Chairman of the Board of Directors and the President of the
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`company, Mr. Hitesh Adhia, are hereby authorized to execute any and all consent agreements or
`documents on behalfofthe Company, and are authorized to take any and all additional actions,
`including the Consent to Receivership under Chapter 631, Part I, Florida Statutes, as deemed
`necessary or appropriate by the Office of Insurance Regulation and/or the Department, without
`further approval of the shareholdersordirectors.
`
`
`
`Directors of Avatar Property & Casualty Insurance Company
`
`[Corporate Seal]
`
`By:Lec
`Print Name: Ht l le, bn | ie fY-
`Title:
`Poe L A_| Chita}(RA
`Date:
`3 UL | V2
`
`STATE OF -iondea
`COUNTY OF VQ\\soocty. sary
`
`The foregoing instrument was acknowledged before me by means of Dphysical presence
`
`or C online notarization, this 2-day of WGxcCy\_ 2022,by A ean AaNia
`(nameof person)
`asWesdent / Chaicman
`for Weter
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`(type ofauthority; e.g., officer, trustee, attorney in fact)
`(company name
`
`{
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`Se,=
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`7
`
`aM!=
`
`EMMA R BOX
`- Notary Public-State of Florida
`sz Commission # GG 964977
`My Commission Expires
`March 03, 2024
`
`tty TX
`(Signature of the Notary)
`
`—
`Crame@ Fyh
`(Print, Type or Stamp Commissioned Name of Notary)
`
`Personally Known _\ “OR ProducedIdentification
`
`Type of Identification Produced
`
`My Commission Expires.
`
`(AQcC\ 3 221.
`
`



