Blog: Citizens Property Insurance revamp passes Florida House

Feb 24, 2012

The following article was published in the St. Petersburg Times on February 24, 2012:

Citizens revamp passes House

By Peter Schorsch

A measure that will change the way Citizens Property Insurance Corp pays for claims in the event of a major storm passed the House Thursday on a 89-25 vote, reports the News Service of Florida.

The bill would reduce the assessment on coastal Citizens policyholders from 6 percent to 2 percent and eliminates it for other residential and commercial accounts.

The bill would make up the loss of revenue by shifting the repayment of losses and levying emergency assessments on a wider pool of policyholders while lengthening the repayment period.

Citizens now has about $12.8 billion available to pay claims until it would be require to seek assessments. Meanwhile, the cost of a 1-in-100 year storm would be $23.2 billion.

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