For the third time in 15 months, Florida property insurers are being told to belly up to the bar and pay another Florida Insurance Guaranty Fund (FIGA) assessment to clear up the claims left behind by the failure of the Poe Financial Group. And while the two percent FIGA assessment may not sound like much, when it's tacked on to the six other assessments levied since 2004 by FIGA, Citizens Property Insurance Corporation, and the Florida Hurricane Catastrophe Fund, it represents just how heavy the financial burden is being borne on the backs of Florida policyholders.
Insurance Commissioner Kevin McCarty recently approved the assessment that calls for all member carriers–in the “all other lines” category–to forward to FIGA two percent of their 2006 net direct written premiums, less dividends paid to policyholders. The money is due from carriers as of November 30, 2007. Homeowners and other insureds will see the latest FIGA assessment when it is tacked onto next year's policies when they begin renewing around March. FIGA was established by the legislature in 1970 to pay claims for insolvent insurers and those ordered into liquidation. Currently, the association is overseeing 31 bankrupt carriers, representing some 3,300 open claims. The association also has reserves of about $162 million.
Filling the Coffers
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 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.
