Citizens Property Insurance Board of Governors Preliminarily Approves Surplus Note Depopulation Program
Sep 7, 2012
At its meeting today, September 7, 2012, Citizens Property Insurance Corporation (“Citizens”) Board of Governors “Board” preliminarily approved the Surplus Note Depopulation Program (“Program”) presented by Citizens’ staff to the Depopulation Committee yesterday.
The Program’s specific language and contract wording must now be returned to the Depopulation Committee for consideration before it receives final Board approval.
Conceived to supplement available takeout plans already approved by the Board and the Florida Office of Insurance Regulation, the Program is designed to encourage the removal of personal residential policies from Citizens by established insurers through a loan mechanism that enables the assumption of large blocks of business by utilizing surplus notes to support the assumption.
To fund the Program, Citizens will dedicate a maximum of $350 million to support policy assumptions, with a maximum of $300 million derived from Citizens Personal Lines Account and a maximum of $50 million from the Coastal Account.
A full report on today’s Board meeting is forthcoming.
To view the meeting materials, including the Program specifics, click here.
Should you have any questions or comments, please contact Colodny Fass& Webb.
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