Florida Insurance Commissioner Kevin McCarty announced last week that the Office of Insurance Regulation (OIR) has approved plans for six insurance companies to remove 100,000 policies from Citizens Property Insurance Corporation, Florida’s state created insurer of last resort. Some of the companies have already begun the take out process, which is scheduled for completion in June. Each of the six companies has agreed to offer the same or better coverage than the policyholders had with Citizens, at the same or lower prices.
“Every company removing these policyholders into the private market has met Florida’s rigorous licensing standards, and most of the newer companies were licensed with double or triple the statutorily required start-up capital of $5 million,” said Commissioner McCarty. “We monitor the removal process very carefully to ensure policyholder protection.”
This take out is the latest in a series of events designed to limit Citizens’ overall exposure. To date, the OIR has approved plans to place a maximum of 500,000 of Citizens’ policies in the private market in 2008.
The six companies that have been approved to take over the Citizens’ policies are:
- American Integrity Insurance Co. of Florida: a maximum of 75,000 policies; 42,000 transferred to date.
- Argus Fire & Casualty Insurance Co.: a maximum of 18,000 policies; 12,360 transferred to date.
- Avatar Property and Casualty Insurance Co.: a maximum of 10,000 policies in June.
- Homeowners Choice Property & Casualty Insurance Co.: a maximum of 30,000; 20,000 transferred to date.
- Magnolia Insurance Co.: a maximum of 60,000 policies in June.
- Southern Oak Insurance Co.: a maximum of 75,000 policies; 6,678 transferred to date.