Citizens Emergency Assessment Ends by July 1
The Office of Insurance Regulation has issued an order to insurers advising that the Citizens Property Insurance Corporation emergency assessment relating to a 2005 plan year deficit will end effective July 1, 2015. The OIR’s order follows action by the Citizens Property Insurance Corporation Board of Governors relating to the defeasance of bonds issued in 2007 as a result of hurricane lossess in 2005.
The emergency assessment initially was 1.4% and was authorized by an OIR order dated January 11, 2007. Effective July 1, 2011, the assessment was reduced to 1.0%. Assessments such as these remain in effect as long as they bonds they support are outstanding. With the defeasance of the underlying bonds in this case, the assessment is no longer necessary. The OIR’s order instructs all insurers collecting the assessment to terminate it by July 1.