The Florida Office of Insurance Regulation has approved the removal of up to 10,000 multi-peril personal residential policies from Citizens Property Insurance Corp. to Southern Oak Insurance Co.
This action is part of the state’s effort to reduce the number of policies in state-backed Citizens and transfer them into the private insurance market.
Southern Oak has requested to remove 8,500 policies from Citizen’s Personal Lines Account (non-coastal properties) and 1,500 from the Coastal Account (coastal properties) for the July 15, 2014 take-out period.
This deal brings the total number of policies approved for take-outs this year to 344,341.
Polices approved for removal by the OIR are not all necessarily eliminated from Citizens inventory. The policyholder has the choice whether to be transferred to the take-out company or remain with Citizens. Policyholders choosing to be transferred have a lower risk of being charged higher amounts for Citizens assessments.
To date, 106,380 policies have been removed from Citizens.
Southern Oaks was licensed in December, 2004. It is headquartered in Ponte Vedra.