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Office Statement

Florida Insurance Commissioner Approves 150,000 Policy Removals from Citizens Property Insurance Corporation
Thursday, September 06, 2012
Contact Info:

                                Jack McDermott                               Amy Bogner
                                850-413-2515                                   850-413-2515
                                
Jack.McDermott@floir.com              Amy.Bogner@floir.com

TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today announced the Office has approved the removal of 150,000 policies from Citizens Property Insurance Corporation (Citizens) by four private sector companies beginning November 6, 2012. The November take-out total will add to the 84,339 already taken out during this calendar year.

“The leadership and commitment by Florida’s domestic companies to expand their business in our state sends a clear signal that we have a reinvigorated homeowners’ insurance marketplace,” stated Commissioner McCarty. “It gives me great pleasure to announce that the latest take-out figures have the potential to make 2012 the largest take-out year for Citizens since 2008.”
 
The following companies will participate in the November 6 take-out:
 
Florida Peninsula Insurance Company – 35,000 policies
Homeowners Choice P&C Insurance Company – 75,000 policies
Southern Fidelity P&C, Inc. – 30,000 policies
Southern Oak Insurance Company – 10,000 policies
 
All of the take-out companies are Florida domestics having been licensed in Florida relatively recently from 2004 (Southern Oak) to 2012 (Southern Fidelity). These companies not only insure Florida residents, but also provide Floridians jobs by operating in our state with home offices in Boca Raton (Florida Peninsula), Jacksonville (Southern Oak), Tallahassee (Southern Fidelity), and Tampa (Homeowners Choice). Cumulatively, these four companies employ 239 Floridians.
 
Even though the approved removal of 150,000 policies combined with the 84,339 policies taken out to date should easily surpass the take-out totals for the last three years, it will take awhile before final numbers can be tabulated.  Under Florida law, policyholders have 30 days to decline the assumption of their policy by a private company, and remain as a Citizens’ policyholder.  Regardless of the “uptake” percentage, the 2012 totals are expected to exceed the total takeouts in 2009 (149,645 take-outs), 2010 (59,792 take-outs), and 2011 (53,577 take-outs).
 
Citizens’ policyholders will be notified of the take-out request (assumption) on October 1, and can choose to accept or decline the take-out offer.  If policyholders do not respond, they will be “assumed” by the private sector company on November 6.
 
Four other companies also expressed interest in removing policies from Citizens including American Integrity Insurance Company (50,000 policies), Tower Hill Preferred Insurance Company (43,250 policies), Tower Hill Select Insurance Company (38,212 policies), and Tower Hill Signature Insurance Company (49,825 policies). However, proposals from these companies are contingent on the Citizens’ Board approving a surplus notes program, and having this program reviewed by the Office. These companies have home offices in Gainesville (The Tower Hill Group), and Tampa (American Integrity); American Integrity and the Tower Hill Group cumulatively employ 439 Floridians.
Earlier this morning, the Office sent a letter to Citizens encouraging them to give first priority to proposals that do not require Citizens to pay a financial incentive, such as a surplus note.
 
For more information about the take-out process and to view the financial status of all approved take-out companies, visit the Office’s website at: http://www.floir.com/Sections/PandC/TakeoutCompanies.aspx.
 

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Contact Info:

                                Jack McDermott                               Amy Bogner
                                850-413-2515                                   850-413-2515
                                
Jack.McDermott@floir.com              Amy.Bogner@floir.com

About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets.  For more information about the Office, please visit
www.floir.com or follow us on Twitter @FLOIR_comm.

 

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