Governor Rick Scott Wants to Halt Growth of State-Backed Citizens Property Insurance Corporation
Nov 30, 2011
The following article was published in The Lakeland Ledger on November 30, 2011:
Scott wants to halt growth of state-backed Citizens Property Insurance Corp.
Citizens Property Insurance Corp. is acting on a suggestion from Gov. Rick Scott and moving toward decisions designed to shrink the size of the state-backed insurer and a corresponding risk to taxpayers.
A panel of executives for the state-backed insurer decided Wednesday to provide recommendations to the governor and Cabinet next week that they think will put the brakes on Citizens growth.
The company now has roughly 1.5 million policyholders making it easily the largest property insurer in Florida. Scott and other top Republican lawmakers want Citizens shrunk because of fears the insurer would suffer massive losses if a big hurricane hits.
Unlike private companies, Citizens has the power to place a surcharge on nearly every insurance bill in the state if it can’t cover such losses.