Surplus Lines Insurers Might Gain Right to Write Citizens Policies
The Florida House of Representatives has advanced its version of the proposal allowing surplus lines insurers to take policies from Citizens Property Insurance Corporation, leaving the issue in the hands of the Senate. By a vote of 66-48, the House passed HB 245 allowing surplus lines insurers meeting certain requirements to enter into Consent Orders with the Office of Insurance Regulation for the removal of Citizens policies. The Senate is pursuing a companion bill, which is still in the committee process.
The bill’s supporters cite Citizens’ substantial policy count and the need to have as many options as possible for placing coverage in the private market. Detractors argue that the state should not be authorizing policies to be removed into companies that are not subject to the same regulatory structure as authorized insurers and are not backed by the Florida Insurance Guaranty Association.