State Representative Frank Artiles Warns Citizens Property Insurance CEO Barry Gilway: Significant Resistance Likely If Surplus Notes Depopulation Program Proceeds
Oct 1, 2012
In a September 28, 2012 letter to Citizens Property Insurance Corporation (“Citizens”) CEO Barry Gilway, State Representative Frank Artiles (R-119) warned there is likely to be “significant resistance” if Citizens continues to advance its proposed Surplus Notes Depopulation Program (“SPN”).
Calling the SPN “one-sided” and saying it has the potential to “waste” $350 million in surplus and $400 million in premiums, Representative Artiles called upon Citizens to “slow down,” “embrace compromise” and work collectively with the Florida Legislature on plan for depopulation.
“Given that Citizens is on track to remove an additional 300,000 policies this year, there is no urgency to press the SPN Program at this time risking expensive litigation,” Representative Artiles explained. “In short, you are well on your way to accomplish your goal and you do not need to give away $350 million to do so. I find it troubling that the entire premise underlying the SPN Program has vanished in only a few short weeks, and yet Citizens continues its efforts to force the SPN Program forward as if there is still not enough market demand for these policies.”
After Citizens announced the SPN in early September 2012, Representative Artiles asked the Florida Office of Insurance Regulation to perform audits of insurers that are slated to receive incentives for assuming Citizens “takeout” policies.
Representative Artiles’ letter is attached for review.
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