FEMA Notifies Seibels Bruce of Intent to Discontinue Contract

The troubles of South Carolina-based Seibels Bruce Group Inc. mounted with the announcement that the company received notice from the Federal Emergency Management Agency (FEMA) that FEMA does not intend to offer Seibels Bruce a Financial Assistance/Subsidy Arrangement with the Federal Insurance and Mitigation Administration for the fiscal year beginning Oct. 1. If this decision stands, Seibels Bruce will not be allowed to continue to act as a servicing carrier for the National Flood Insurance Program (NFIP) after Sept. 30.

FEMA indicated its action is a result of the Order Imposing Administrative Supervision and Appointing Supervisor issued by the South Carolina Department of Insurance on Aug. 20, and restrictions imposed by the North Carolina Department of Insurance on the same date.

Seibels Bruce said it is actively working through various avenues to continue service to agents, policyholders and claimants. The company is arranging a meeting with FEMA in Washington, D.C. to appeal FEMA’s decision and to discuss the terms of Seibels Bruce’s potential continued participation in the NFIP. However, no assurances can be made that Seibels Bruce will be successful in these efforts.