FL Regulators: Execs of Bankrupt Insurers Illegally Took New Roles | Insurify [Video]

Florida law bars executive officers and directors who’ve worked for now-insolvent insurance companies from taking similar roles in the state’s industry. But a number of insurers are ignoring the so-called “no-fly” rule that took effect in 2002, the Tampa Bay Times reports.

Industry executives have flocked to new roles, and now the state’s insurance commissioner is cracking down.

Executive movement is common, but the state says no more

Authorities from the state’s Office of Insurance Regulation (OIR) report they’ve found 19 instances of executives who previously worked for now-insolvent insurers holding similar posts in other companies, the newspaper says. This list includes one former CEO, three former chief financial officers, and one general counsel, among others.

Holding such a role is a violation of Florida law unless the parties are able to demonstrate their “personal actions or omissions were not a significant contributing cause to the insolvency.”

OIR Commissioner Mike …