Florida lawmakers attempt to manage problematic and controversial solution to Citizens Property Insurance problem

In Florida, lawmakers have been working on fixing the problems of the state-run Citizens Property Insurance Corp. Their efforts have yielded few results and now legislation that could help the program recover from its massive debt has hit a roadblock. Legislators have mostly been focused on reducing the number of people receiving coverage from Citizens by having private insurance companies take on more policies. The Legislature has approved an amendment to the bill that would have accomplished this, House Bill 245, which makes transferring policies more difficult. Now, insurers must…

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Florida legislation could move consumers from Citizens Property Insurance to more risk surplus lines.

It is no secret that the Florida Citizens Property Insurance group is under financial stress. The state-run insurance company has offered affordable insurance policies to Floridians for decades. This affordability has attracted thousands of consumers, making Citizens the largest insurer in the state, but it has also come at a cost. The insurer now has more policies than it can handle efficiently and is not generating enough revenue to continuing operating viably. State legislators have been working on a way to trim the number of policies covered by the company.…

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Louisiana’s Citizens Insurance group files emergency application seeking the aid of the U.S. Supreme Court

Louisiana’s Citizens Property Insurance Corporation, a state-run insurance group that accounts for the majority of the state’s insurance policies, has filed an emergency application for stay to the U.S. Supreme Court. The insurer is looking to bar further seizures from a 2009 class-action case that saw more than $90 million returned to consumers. The stay application, which was filed on Monday of this week, argues that the Louisiana Supreme Court violated the insurer’s right of due process by prohibiting the organization from mounting an appropriate defense during the litigation. The…

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Louisiana Citizens Property Insurance seeks to raise rates by 10.5% throughout the state

Homeowners in Louisiana may see their insurance rates jump as the state’s own Citizens Property Insurance company proposes new, higher rates. The state-run insurer, which accounts for more than 120,000 policies, is looking to raise rates throughout the state by an average of 10.5%. For some parts of the state – particularly those near the coast – these rates will be higher. Insurance Commissioner Jim Donelon is currently reviewing the rate increase proposal to see if it is needed in the current market. The insurer claims that higher rates are…

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Insurance reform takes a backseat in Florida Legislature, Insurance Council continues to press forward with changes

As insurance reform loses momentum amongst legislators, the Florida Insurance Council says that it will continue pushing for major changes to the state’s regulations and the Citizens Property Insurance group. Reform has fallen to the wayside in the current session of the state’s Legislature, which will begin next week. While lawmakers focus more on budget and redistricting, the much needed insurance changes are not to be considered until the next legislative session, which will happen much later in the year. The Insurance Council is pushing for changes to the state’s…

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Insurance companies now face massive losses due to sinkholes in Florida

Sinkholes that are destroying Florida houses are now costing insurance companies in that state hundreds of thousands of dollars as claims begin rolling in. In fact, in three claims alone linked to sinkholes that cracked floors and broke water pipes, insurers had to pay out over $500,000. Among those three houses in question, none of the homeowners used the money to try to repair their homes. Instead, they are among the hundreds living in Florida’s “sinkhole alley” – which consists of the counties of Hillsborough, Hernando, Pasco, and Pinellas –…

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Florida legislators feeling pressure to solve the fraud plaguing the state’s insurance industry

Florida Governor Rick Scott is pressuring lawmakers to make changes to some of the state’s auto and property insurance laws. The Governor claims that these laws are each costing consumers millions of dollars. Legislators have been trying to find a resolution for the issue for over a decade but have so far been unable to make any headway. Governor Scott is now pushing for a solution to be found quickly to prevent further financial stresses falling upon consumers. State law requires Floridian drivers to purchase personal injury protection. The issue…

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