ASSURANCEAMERICA CORPORATION (OTCBB: ASAM), is monitoring closely potential changes in Florida law that may eliminate the requirement for motorists to carry personal injury protection insurance (PIP) and make enforcement of any surviving requirements more difficult. The existing law will automatically expire on October 1, 2007, and while most had expected that the Florida legislature would act to extend these requirements, it appears that they may not pass the legislation necessary to extend those requirements before their scheduled expiration, if they act at all.
Because many of the Company’s customers purchase only insurance that is required by law, these developments could adversely impact the Company’s financial performance, in our 40 retail locations in Florida and to a lesser extent our insurer which has approximately 42% of its business in Florida. The extent of this impact on our performance will depend on a variety of factors, including whether consumers react quickly to the potential changes in Florida law and whether these changes are temporary or permanent. As a result, we cannot provide an accurate assessment of the potential financial impact at this time but are continuing to follow these developments closely.
AssuranceAmerica focuses on the specialty automobile insurance marketplace, primarily in Alabama, Florida, Georgia, South Carolina, Texas, Louisiana, and Mississippi. Its principal operating subsidiaries are TrustWay Insurance Agencies, LLC (“Agency”), which sells personal automobile insurance policies through its 47 retail agencies, AssuranceAmerica Managing General Agency LLC (“MGA”), which markets the company’s insurance products through over 1,500 participating independent agencies, and AssuranceAmerica Insurance Company (“Carrier”).
This press release includes statements that may constitute “forward-looking” statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements, as discussed in the Company’s filings with the U.S. Securities Exchange Commission (SEC). Historical results are not indicative of future performance.