Florida Insurance Commissioner McCarty Approves Another Round Of Policy Removals From Citizens
TALLAHASSEE, Fla. – Commissioner McCarty announced today that the Office of Insurance Regulation (Office) has approved the plans of six insurance companies to remove another 100,000 policies from Citizens Property Insurance Corp. in June.
Some of the companies already began taking out policies earlier this year, and others will begin with the June take-out. Florida law allows Citizens' policyholders to refuse the offer and stay in Citizens. All of the take-out companies have agreed to offer the same or better coverage than the policyholder had with Citizens, and at the same or lower price.
"Every company removing these policyholders into the private market has met Florida’s rigorous licensing standards, and most of the newer companies were licensed with double or triple the statutorily required start-up capital of $5 million," said Commissioner McCarty. "We monitor the removal process very carefully to ensure policyholder protection."
To date, the Office has approved plans to remove up to 500,000 policies in 2008 from the state-created insurance company and place them in the private market.
The six companies that have been approved to remove Citizens policies are:
- American Integrity Insurance Co. of Florida: up to 75,000 policies total; 42,000 removed to date.
- Argus Fire & Casualty Insurance Co.: up to 18,000 policies total; 12,360 removed to date.
- Avatar Property and Casualty Insurance Co.: up to 10,000 policies total in June.
- Homeowners Choice Property & Casualty Insurance Co.: up to 30,000 policies total; 20,000 removed to date.
- Magnolia Insurance Co.: up to 60,000 policies total in June.
- Southern Oak Insurance Co.: up to 75,000 policies total; 6,678 removed to date.