The Florida Office of Insurance Regulation has approved the removal of up to 78,897 personal residential policies and 500 commercial residential polices from Citizens Property Insurance Corp. by the following four companies:
- First Community Insurance Co. ‒ approved to remove up to 12,897 personal residential PLA policies
- Heritage Property & Casualty Insurance Co. – approved to remove up to 20,000 personal residential policies (17,326 PLA/2,674 CA) and up to 500 commercial residential policies (472 commercial lines account (CLA) and 28 CA)
- Mount Beacon Insurance Co. – approved to remove up to 29,000 personal residential policies (25,000 PLA/4,000 CA)
- Prepared Insurance Co. – approved to remove up to 17,000 personal residential PLA policies
Citizen’s personal lines and commercial lines accounts are mostly non-coastal properties and the coastal account are coastal properties. The take-out periods are April 28, 2015 for personal residential impacting both the PLA/CA policies and April 14, 2015 for commercial residential impacting both the CLA/CA 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.
This announcement brings the total number of policies approved for take-outs in 2015 to 488,405. In 2014, the total number of policies approved for take-outs was 1,109,644 and the final year-end number of policies removed from Citizens was 416,623. By statute, policyholders may choose to remain covered by Citizens during take-out offers; however, they may be at risk of higher assessments.
Source: Florida Office of Insurance Regulation
Topics Florida
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