A partnership headed by former state Sen. Locke Burt is planning to form an insurance company in Ormond Beach, Fla. to issue high-risk policies. Other investors in the Burt group are Susan, Charles and Harry Bleiwise.
Office of Insurance Regulation officials said the Burt group has raised $6.3 million for the venture and plans to seek additional funding.
According to the Daytona Beach News-Journal, their business plan calls for the company to assume at least 15,000 policies from Citizens Property Insurance Corp., the state-run pool that provides insurance for those who can’t buy coverage from private firms.
Justin Glover, a Citizens spokesman, said Citizens provides various bonuses to private companies to take over its policies. Citizens pays the companies a bonus ranging from 12.5 percent to 17.5 percent of a policy’s premium for each high-risk policy they take off Citizens’ hands.