Following back-to-back multi-hurricane seasons, Florida's property insurer of last resort is expected to run a deficit of $1.7 billion for 2005, a report to the state's House Insurance Committee warned.
Florida Chief Financial Officer Tom Gallagher reacted by urging that surplus sales tax revenues be used to make up the Citizens Property Insurance Corp.'s estimated deficit. Normally, any Citizens deficit is funded by assessments on the state's homeowner insurance writers, who then can pass them on to their policyholders.
Mr. Gallagher said the House Insurance Committee's receipt of the report should galvanize policymakers into rethinking how the deficit is funded. News of the deficit, he said, "reinforces the need for immediate rate relief for Florida's property owners, which can be accomplished by using surplus sales tax revenue to offset insurance assessments."
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