Citizens' Newest Questionable Move
Posted By Givens Givens Sparks || Sep 7, 2012
Today's Tampa Bay Times has an article highlight Citizens Insurance's newest move to transfer insurance policies to private companies. This "depopulation" could have adverse effects for Florida's homeowners. As we have chronicled numerous times here on this blog, Citizens has tried a myriad of things to rid itself of insurance policies. This latest move, by Florida's "insurer of last resort" would incentivize private insurers to take over Citizens policies.
Citizens currently holds a record $6.2 billion in reserves. This new plan would lend this money at low interest rates to private insurers. According to the article these loans require only interest payments for three years, and are partly forgivable if hurricanes hit the state.
Florida homeowners, already suffering from Citizens handling of sinkhole, fire and water claims could suffer even more if their policies are transferred to private insurance companies that go bankrupt.