If a takeout company removes a policyholder’s coverage from Citizens Property Insurance Corporation, Florida’s insurer of last resort, Consumer Choice legislation enacted in 2001 says consumers can keep their agent. Agents attending the Florida Association of Insurance Agent’s March 29 and 30 Legislative “Fly-in” in Tallahassee were encouraged to ask their legislators to preserve Consumer Choice.
During the briefings, agents were told that Consumers Choice gives a consumer freedom to choose either an agent or company and thus coverage and price. It was dscribed as “a carefully balanced approach that brought fairness to a highly disruptive process while still increasing the depopulation of Citizens.”
FAIA gave everyone a 300 word position paper giving information they should stress in speaking with legislators. “It’s true, the problem forcing agents to accept punitive takeout contracts was solved by Consumer Choice. But, always, regardless of anything else … the consumer is still free to accept any takeout offer from any takeout company. Since enactment, every takeout carrier (except one, allegedly) has been able to remove policies, and did so in a consumer and agent-friendly fashion,” the paper maintained.
FAIA said that before Consumer Choice, consumers were forced to forfeit multiple policy discounts, lose their umbrella policies, or go without needed coverages that complemented their Citizens policy. Some are indigent, handicapped and elderly, or don’t speak English and depend on the services of an agent, according to FAIA. Others were confused and distraught to be suddenly assigned to an out of state telephone bank, the group added.
FAIA believes this accommodation is why no legislator voted against Consumer Choice in its “stand alone” version and why Governor Jeb Bush specifically referred to it as a reason for signing the Citizens bill.
According to FAIA, the real beauty is how Consumer Choice also helps to depopulate Citizens. Takeout carriers would not appoint agents, leaving them no other choice but to keep sending policies to Citizens. Now, with the appointments, agents cannot send policies to Citizens if the takeout carrier is willing to write them.
Statistics prove some of the largest takeouts have actually occurred after Consumer Choice, accoroding to FAIA. Currently, in the wake of four storms, half a dozen carriers (mostly newly capitalized) are seeking policies almost equal to the entire personal lines policy count.
FAIA concludes that this is proof positive that Consumer Choice works exactly as the Legislature intended and argues that its benefits should be maintained without any amendments.
Moe Larry Curly says: 
commander says: 
Jason Peters says: 
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