More of the Same from Citizens Property Insurance
Posted By Givens Givens Sparks || Aug 28, 2012
In an article published by the Miami Herald, Citizens Property Insurance and their corporate spending were exposed.
Over the course of the last year, Citizens has plead poverty and demanded rate increases for its 1.4 million customers. Known as the insurer of last resort, Citizens Insurance is the state run property insurance company that continues to demand rate increases on Florida policyholders despite the fact that it has been six years since Florida has been hit by a major hurricane and despite the fact that Citizens has collected enough in premiums and taxpayer funds to build up a $6.2 billion cash surplus. Citizens blames a great deal of their losses on sinkhole payouts.
Now the Miami Herald is reporting that although Citizens continues to raise rates on their policyholders they are doing nothing to reduce Citizens executives' lavish spending. Within the article, the Miami Herald exposes the millions in travel, food, entertainment, and lodging that Citizens spends on their corporate executives. One disturbing point the article points out is that while Florida’s state agencies have slashed budgets and employees in line with Gov. Rick Scott’s austerity mandate, Citizens has projected that their travel costs are expected to rise by about 130 percent this coming year, to nearly $3.4 million from $1.5 million.
Policyholders can only hope that the leaders of the State address the Miami Herald article and demand accountability from Citizens. Otherwise the policyholders will only get more of the same, in this instance higher premiums, less coverage, and no accountability.