Office Approves Removal of up to 182,567 Policies from Citizens
TALLAHASSEE, Fla. – The Florida Office of Insurance Regulation (Office) has approved the removal of up to 180,040 personal residential policies and 2,527 commercial residential polices from Citizens Property Insurance Corporation (Citizens) by the following nine companies:
· Heritage Property & Casualty Insurance Company – approved to remove up to 20,000 personal residential policies (17,000 PLA/3,000 CA) and up to 500 commercial residential policies (472 Commercial Lines Account (CLA) and 28 CA policies)
Citizen’s Personal Lines and Commercial Lines Accounts are mostly non-coastal properties and the Coastal Account are coastal properties. The take-out periods are January 13, 2015 for personal residential impacting both the PLA/CA policies and January 6, 2015 for commercial residential impacting both the CLA/CA policies. This is part of the state’s ongoing effort to reduce the number of policies in the state-created Citizens and transfer them to the private insurance market.
Today’s announcement represents the first take-outs approved for 2015. In 2014, the total number of policies approved for take-outs was 1,109,644 and the actual number of policies removed from Citizens this year as of September 18, 2014 is 127,550. By statute, policyholders may choose to remain covered by Citizens during take-out offers; however, they may be at risk of higher assessments.