As the Citizens Property Insurance Corporation enters the 2006 legislative session, it does so with a large target on its back. After coming under fire for the business relationships of some executives with other private companies, the mishandling of hurricane claims, and faced with the necessity to levy large assessments against all state policyholders to fund deficits, the residual market finds itself the subject of multiple hurricane task forces. It has become topic numero uno among lawmakers, especially among those looking to run for higher office. It seems that every day some lawmaker or trade group is unveiling a new plan to reform Citizens and address its many issues.

The paradox of Citizens is that, by definition, it serves many goals that often are competing. It is the market of last resort for policyholders, while at the same time having the mission to depopulate. It also is supposed to have the highest rates in the state, despite the attitude of regulators, lawmakers, and policyholders who often balk at rate increases. While building a financial structure to pay hurricane claims, the backbone of Citizens' financial plan derives from its ability to levy assessments on all state policyholders. Due to the last two hurricane seasons, the intersection of rate levels and assessments has come into clearer focus.

Additionally, lawmakers are facing the possibility of expanding or contracting the boundaries that mark where residual coverage is available. However, despite the swarm of activity around the residual market, the issues remain remarkably simple. Namely, who pays, how much, and where is the money going to come from?