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Citizens' Board Divided Over Borrowing

The state's largest property insurer -- Citizens Property Insurance Corp. -- has found itself on the defensive once again in the last few months.

By Gary Fineout | Updated on February 28, 2010

The state’s largest property insurer — Citizens Property Insurance Corp. — has found itself on the defensive once again in the last few months. Questions about its contracts and finances have sparked criticism from elected officials and divided the board that runs the company that has more than 1 million policyholders. The grumbling comes at a time when Citizens has raised its rates for the first time in three years.

The divisions came close to derailing a plan by Citizens to borrow up to $2.4 billion to shore up its high risk account for the upcoming 2010 hurricane season. The Board of Governors of Citizens only approved the plan after the first vote on the proposal resulted in a tie vote. The board was also forced to agree to rebid a contract that sparked news articles and public scolding.

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