Nearly 400,000 Florida Citizens Property Insurance Policyholders to Have Private Market Option in November Prior to Clearinghouse Launch
Aug 29, 2013
Citizens Property Insurance Corporation (“Citizens”) advised today, August 29, 2013, that nearly 400,000 of its policyholders will be given the option to return to the private market following last week’s approval by the Florida Office of Insurance Regulation (“OIR”) for 10 private insurers to assume policies from Citizens in November.
Citizens policyholders selected for takeouts will receive notices at least 30 days in advance providing instructions on how they can elect to remain with Citizens if they so choose. Consumers will have 30 days after the assumption occurs to decide whether to return to Citizens.
In its news release today, Citizens CEO Barry Gilway said the OIR order will assist Citizens’ efforts to return to its role as an insurer of last resort, while providing many policyholders with more comprehensive coverage at comparable rates.
“Citizens policies are becoming more attractive to private carriers,” Mr. Gilway said. “We have had success but still have a ways to go.
To view the OIR Orders, click on the following hyperlinks:
- Florida Peninsula Insurance Company
- Heritage Property and Casualty Insurance Company
- Homeowners Choice Property and Casualty Insurance Company
- Southern Fidelity Property and Casualty, Inc.
- Southern Oak Insurance Company
- Tower Hill Preferred Insurance Company
- Tower Hill Prime Insurance Company
- Tower Hill Signature Insurance Company
- United Property and Casualty Insurance Company
- Weston Insurance Company
Policyholders switching to private carriers would no longer be subject to Citizens’ assessments, which could reach 45 percent of premium in the event of a major storm. Instead, they would be subject to the 2 percent assessment levied on all Florida policyholders in the event Citizens’ policyholder assessments are insufficient to restore Citizens’ claims-paying ability following a major storm.
“These takeout efforts not only improve the coverage for many individuals but also reduce the risk of a hurricane tax on all Florida policyholders,” Mr. Gilway said.
In addition to the takeout program, Citizens will launch its Consumer Clearinghouse in January 2014, which is designed to match Citizens policyholders and applicants with private carriers willing to write coverage at comparable rates.
Should you have any questions or comments, please contact Colodny Fass& Webb.
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