Storm brewing: Raiding Citizens for start-ups?
The House is proposing moving $250 million out of Citizens' surplus funds to pay for an incentive program that gives low-interest loans to small insurance start-ups, according to the newest House budget proposal.
Citizens surplus is a pot of money that comes from premiums paid by its policyholders (like yours truly) set aside to pay claims. The proposal will be controversial, since Citizens has long said that they're not charging enough to pay potential claims that could arise from a major storm season. That means, there's a good chance a major hurricane could trigger assessments, without taking any money out of that pot.
Count George LeMieux among the critics, as he bashes the House's plan in his latest edition of the LeMieux report. Check out a House bill analysis.