Search
 

Citizens' Take-Out Companies Under Fire

The Office of Insurance Regulation has issued an order that requires Citizens Property Insurance Corporation to offer coverage to homeowners whose policies had been removed by private insurers

By staff Writer | Updated on October 31, 2006

The Office of Insurance Regulation has issued an order that requires Citizens Property Insurance Corporation to offer coverage to homeowners whose policies had been removed by private insurers charging unapproved rates. The order centers on two take-out companies that have removed thousands of polices from Citizens. Florida Peninsula Ins. Co. has taken out more than 85,000 policies and Homewise Ins. Co. has taken out 31,000 policies. Most of the policies are located in South Florida.

By law, Citizens is required to charge rates that are higher than rates charged by private insurers so that the in-surer is not competitive with the private market. Specifically, the residual market must examine the rates charged by the 20 largest carriers offering homeowners’ insurance in the state and set its rates above the average rates charged by those top 20 carriers in any given territory. Under Citizens’ take-out plan, policyholders that are offered coverage by a private insurer are automatically declared ineligible for Citizens’ coverage.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.