Florida Approves Up to 183K Takeouts from Citizens for 2015

October 30, 2014

  • October 30, 2014 at 2:08 pm
    Agent says:
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    Are captive agents, i.e. AllState/StateFarm/etc, allowed to have LSA’s with take out companies? If they are only appointed to write with Citizens (since they can no longer write home policies with their company) wouldn’t that be one of the reasons that Citizen’s book continues to grow (please note how I said ONE of the reasons)? If they aren’t allowed to do LSA’s with the assumption companies wouldn’t that then mean they are informing their clients to remain with Citizens so that they keep the business? If over 1 million were selected and only 125k have been moved, it seems like there is a miss somewhere.

    Instead of adding more companies to complete the assumptions, perhaps we can look to see why policies aren’t moving. Perhaps another reason is that the rate with the assumption company increased 20%+ (some cases 70%) during a previous assumption and thus agents are hesitant to allow more take outs?

  • October 30, 2014 at 3:09 pm
    Mr. Solvent says:
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    A lot of captives are limited in the LSA’s they can take. Honestly a lot of those remaining in Citizens are the ones who believe the government will protect them better than a private company. Many have been through multiple takeouts only to end up back at Citizens. Rate has only been a factor in a small percentage of what I’ve seen come across my desk.

    What everyone needs to realize is they won’t have much of a choice when they get put through the clearinghouse. As such, if a takeout is with a seasoned carrier (there are some out there) the customer is wise to accept the takeout.



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