Florida Regulator Conducting Review of Citizens Insurance

By Michael Adams | December 7, 2012

Florida regulators are working on a report that is expected to layout the financial status, claims handling and other administrative workings of the state’s 1.4 million policyholder-backed property insurer.

Florida Insurance Commissioner Kevin McCarty, in response to an inquiry by state Rep. Frank Artiles, R-Miami-Dade, said his office has completed the field work of the examination of Citizens Property Insurance Corp. and is now reviewing the data in order to make a report to state lawmakers next February.

McCarty said the market conduct exam is not as extensive as requested by Artiles, but noted it comes at the same time as the state’s Auditor General and Inspector General of the Office of the Governor are conducting inquiries into the alleged misconduct of Citizen’s executives.

Artiles has been critical of Citizens, particularly its plan to loan its surplus to private insurers in exchange for them removing policies from its books.

Artiles has also called for a market conduct exam into the Tower Hills Group for its role in lobbying for the surplus loan program and the group’s various insurers’ financial solvency, underwriting ratings, commission payments and consumer refund program.

“If Citizens’ loan program, which looks more like a Christmas present than a genuine incentive program with an ironclad guarantee, is going to move forward, then I’m going to do my part to insure we know the types of companies we are dealing with and understand their business practices,” said Artiles in a statement.

 

Subscribe Like this article?
Subscribe to our free email newsletter.

Add a Comment

Your email address will not be published. Required fields are marked *

*

More News
More News Features