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Consumer Advocate Asks About Surplus Note Program

Consumer Advocate Asks About Surplus Note Program

Insurance Consumer Advocate Robin Westcott sent a letter to Citizens Property Insurance Corporation seeking additional information about several aspects of Citizens’ proposed surplus note program.  Her letter encourages Citizens to fully analyze the proposal to ensure that a cost-benefit analysis justifies the commitment of up to $350 million in surplus notes.

The letter asks how Citizens arrived at the proposed note amount of $50 million per insurance, as well as how Citizens derived the chosen bonus calculation.  She also asks a series of questions about the modeling analysis underlying the program and whether the results would be different using different models.

Ms. Westcott concludes by stating that she does not expect a formal reply from Citizens but beleives these questions can help the Citizens board evaluate the program and ensure it serves to goal of reducing assessments on Floridians.