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 consumers filed class-action lawsuit against Citizens Property Insurance

As Florida’s Citizens Property Insurance continues… to struggle beneath the crushing weight of debt, the state-run company’s policyholders are mobilizing for a massive lawsuit against the company. Consumers have filed a class-action lawsuit against the company this week in Tallahassee, Florida. Consumers are joined by Senator Mike Fasano, who believes that the company has been too bullish in its implementation of rate hikes. This is the same issue being brought to light by the lawsuit. Consumers claim that the company is overestimating the value of homes and thus driving up…

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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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Scott Wallace, CEO of Citizens Property Insurance, to step down

Scott Wallace, the President and CEO of Citizens Property Insurance Corp., has announced that he will be stepping down on April 6, 2012 from his positions in the corporation. Wallace has been the CEO for the insurer for over six years, and has been the head of the company throughout a time when it underwent a significant amount of growth and became the largest provider of homeowners’ insurance in Florida, reaching approximately 1.5 million policies. Citizens did face some scrutiny after state officials and Governor Rick Scott worked to find…

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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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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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Citizens board of governors submits new legislative agenda to Florida lawmakers

The governing board of Florida’s Citizens Property Insurance Corp. has agreed on a new legislative agenda that could save the state-run insurance program more than $1.5 billion in insured losses. The board met with state legislators this week in Orlando to discuss the agenda, particularly what legislators can do to make the insurance program more efficient. The board expressed the importance of making cuts to the types of properties the program can insure and has begun pressuring lawmakers to hasten the rate at which premiums can rise. Earlier this year,…

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