Legislature Considers Surplus Lines Insurers for Citizens Depopulation
Both chambers of the Florida legislature are advancing bills that would surplus lines insurers to remove policies from Citizens Property Insurance Corporation. As Citizens’ policy count continues to skyrocket, the legislature is looking for opportunities to attract insurers that might be interested in its policies.
Opponents of the bill have questioned whethere it contains enough protections for consumers considering that surplus lines insurers are largely unregulated by the Office of Insurance Regulation. Supporters respond that the bill contains a number of provisions designed to ensure that strong insurers take the policies.
Representative Jim Boyd has sponsored the House version of the bill– HB 245. He points out that the bill has minimum surplus and rating requirements for qualifying insurers. Citizens policyholders also may opt-out of the depopulation efforts. “This is far more than what the companies who are already here are required to do,” said Boyd. “And we did it that way because surplus lines is an entirely different animal.”
Senator Garrett Richter is advancing the proposal in the Senate as SB 578. “What we are doing is expanding the supply of people that are taking policies out,” Richter has said.
The bill will advance in both chambers, with those who are concerned about it saying they will offer a series of amendments designed to strengthen consumer protections in the bill, if not kill it.