Case Law Update: Capacity Insurance Extends Supervision Order Eleventh Time

Background: A Long Road of Regulatory Supervision

The Florida Office of Insurance Regulation ("OIR") has once again extended the period of administrative supervision over Capacity Insurance Company, marking the eleventh consecutive consent order in a supervision saga that began more than three years ago. On September 20, 2026, OIR Commissioner Michael Yaworsky's office filed the Eleventh Consent Order in Case No. 403222-26-CO, extending Capacity's supervised status for an additional 120 days from August 19, 2026.

This latest extension continues a pattern that started with the original Supervision Order (Consent Order 307008-23-CO), filed on March 3, 2023, which placed Capacity under public administrative supervision for an initial 120-day period pursuant to Sections 624.80–.87, Florida Statutes. Since then, the company and OIR have executed ten separate extensions—ranging from 60-day to 120-day increments—in an ongoing effort to manage what the order describes as a "smooth transition and orderly wind-down" of Capacity's remaining policies and liabilities.

What the Eleventh Consent Order Actually Says

According to the filing, Capacity Insurance Company remains a domestic property and casualty insurer authorized to transact business in Florida under Chapter 624, Part III, Florida Statutes. However, the company has been operating under a Runoff Plan since 2023—a formal roadmap for winding down its book of business that must be approved by OIR.

Key provisions of the Eleventh Consent Order include:

• 120-day extension of administrative supervision, running from August 19, 2026.
• Capacity's voluntary waiver of the written notice requirement under Section 624.81(1), Florida Statutes.
• Confirmation that all prior consent orders and corrective action plans remain in full force and effect except as expressly superseded.
• OIR's continued statutory authority under Section 624.81(8) to extend supervision "in increments of 60 days or longer" so long as conditions justifying supervision persist.

Why This Matters for Public Adjusters and Policyholders

For public adjusters and claims professionals handling Florida property claims, an insurer under prolonged administrative supervision presents unique challenges and risks that demand heightened diligence.

1. Claims Payment Uncertainty

Administrative supervision under Sections 624.80–.87 does not necessarily mean Capacity is insolvent, but it does signal that OIR has identified conditions warranting close regulatory oversight—often related to financial solvency, reserve adequacy, or claims-handling practices. Public adjusters representing policyholders with open or pending claims against Capacity should monitor payment timelines closely and document all communications meticulously.

2. Runoff Plan Implications

Because Capacity is operating under an OIR-approved Runoff Plan, the company may be limiting new business, adjusting claims-handling staffing, or restructuring its operations. This can translate into slower response times, changes in claims adjusters or third-party administrators, and potential disputes over policy renewals or non-renewals.

3. Potential Escalation to Receivership

Extended and repeated supervision orders—especially an eleventh consecutive extension—can be a precursor to more serious regulatory action, including potential referral to the Florida Department of Financial Services for receivership proceedings under Chapter 631, Florida Statutes. Public adjusters should advise policyholders to act promptly on any outstanding claims and preserve documentation in case of future insolvency proceedings.

Practical Takeaways for Claims Professionals

• Verify policy status before advising clients to file new claims with Capacity; confirm the policy is still active and within its runoff terms.
• Document everything—correspondence, denial letters, payment delays—in case future receivership proceedings require proof of claim submissions.
• Advise clients on alternative coverage if policies are nearing non-renewal as part of the wind-down process.
• Monitor OIR's website for further consent orders, as this pattern suggests continued regulatory activity is likely.
• Consult legal counsel early if claims are being delayed, underpaid, or denied without clear justification, particularly given the company's precarious regulatory status.

How Louis Law Group Can Help

Navigating a claim against an insurer under prolonged administrative supervision requires experienced legal guidance. At Louis Law Group, our attorneys understand the complexities of Florida insurance regulation and know how to protect policyholders' rights when insurers face financial distress or regulatory scrutiny. Whether you're a public adjuster seeking guidance for a client or a policyholder concerned about a pending claim with Capacity Insurance Company, our team can help you understand your options, pursue timely payment, and safeguard your interests throughout the process.

Call Louis Law Group today at (833) 657-4812 for a free consultation. Don't wait until it's too late—let our experienced Florida property insurance attorneys advocate on your behalf.

Source: OIR Orders & Memoranda - Capacity Insurance Company Eleventh Consent Order