The Florida Office of Insurance Regulation (OIR) has approved the removal of up to 65,000 personal residential policies and 1,500 commercial residential polices from Citizens Property Insurance Corp. The following two companies have been approved to participate:
- Anchor Property & Casualty Insurance Co. – approved to remove up to 10,000 personal residential policies (8,164 Personal Lines Account and 1,836 Coastal Account)
- Heritage Property & Casualty Insurance Co. – approved to remove up to 55,000 personal residential policies (35,000 Personal Lines Account and 20,000 Coastal Account) and up to 1,500 commercial residential policies (1,300 Commercial Lines Account and 200 Coastal Account)
Citizen’s Personal Lines and Commercial Lines Accounts are primarily non-coastal properties and the Coastal Account is coastal properties. The take-out periods are April 19, 2016 for personal residential impacting both the Personal Lines/Coastal Account policies and April 12, 2016 for commercial residential impacting both the Commercial Lines/Coastal Account policies. This is part of the state’s ongoing depopulation effort to reduce the number of policies in the state-created Citizens and transfer them to the private insurance market.
The announcement brings the total number of potential policies approved for take-outs in 2016 to 343,649. In 2015, the total number of potential policies approved for take-outs was 1,321,193 and the actual number of policies removed from Citizens as of December 22, 2015 was 272,785. Policyholders who receive a take-out offer may choose to remain covered by Citizens through the opt-out process.
Source: Florida Office of Insurance Regulation