The Buzz

From the staff of the Tampa Bay Times

Report: Rick Scott wants to kill Citizens Insurance altogether

23

April

Nobody disagrees that Citizens Insurance is not over-exposed, but Paige St. John at the Herald-Tribune reports that Gov. Rick Scott wants to do away with Citizens altogether: Gov. Rick Scott has secretly pushed to kill Citizens Property Insurance before his first term ends, a goal that alarmed even representatives of private insurance companies seeking to remove Citizens as a competitor, documents show.

In a February meeting with the industry lobbyists writing bills for the upcoming legislative session, documents show Gov. Scott’s top staff sought to force the 1.3 million property owners who now have a policy from the state-run carrier back into the private market, “phasing out Citizens completely.”

The industry lobbyists protested that Florida carriers could not absorb all of Citizens’ business, records show. The gap would force many Florida property owners to turn to the unregulated surplus lines market, where rates are unchecked and policies are not backed by a state guarantee fund.

A lobbyist who attended the meeting advised others by email that Gov. Scott knew about the gap, but was not bothered.

“He doesn’t seem to care whether they are insured in the voluntary market or surplus lines,” the lobbyist wrote.

Story here

[Last modified: Saturday, April 23, 2011 9:03pm]

    

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