Governor Approves Citizens Assessment Change
Governor Rick Scott has signed a bill into law changing the way Citizens Property Insurance Corporation will levy assessments following a storm. The bill (HB 1127) had the support of the Office of Insurance Regulation, the Insurance Consumer Advocate, Citizens and the insurnace industry. Under the new law, Citizens will not levy regular assessment on the personal lines account (PLA) and commercial lines account (CLA) and reduces the assessment on the coastal account from 6 percent to 2 percent. The bill reduces the potential cash strain on the private market that otherwise could have occurred as insurers would have owed regular assessment payments to Citizens at the same time they were paying their own storm losses. The new law also reduces the administative burdens on the industry and the Office of Insurance Regulation relating to recoupment filings and collections.