Citizens Board Hoping Fla. Legislature Will Pay its $525 Million Shortfall

March 29, 2005

Citizen’s Property Insurance Corp., Florida’s insurer of last resort, is projecting a $525 million deficit and could have to make it up by assessing property owners, but is putting the action off until a possible decision by the Legislature to bail it out.

The Citizens board meets Wednesday and members hope the Florida Legislature will pass a bill that will provide the company with financial relief and eliminate the need to assess property owners across the state.

The board could sign off on the projection as soon as mid-April, but that would mean assessments.

Last year, hurricanes that hit Florida caused more than $20 billion in insurable damage. So far, the storms have not caused the insurance chaos and company failures that resulted from Hurricane Andrew in 1992, partly because of the establishment of Citizens and other safeguards.

Topics Florida

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