CORRECTION: Florida Citizens Property Insurance Clearinghouse Closer to Reality With House, Senate Passage of CS/SB 1770
May 2, 2013
CORRECTION: Please note the corrected title to reflect that CS/SB 1770 has not yet been enacted.
CS/SB 1770, which establishes a clearinghouse within Citizens Property Insurance Corporation (“Citizens”) to steer property insurance policies into the private market, was approved today, May 2, 2013, by the Florida Senate after having been amended by the Florida House of Representatives, also today. The Senate concurred with the House amendment to CS/SB 1770 by a vote of 32 to 1.
The bill will now be sent to Florida Governor Rick Scott.
Now scaled-back from its original version, the bill implements the Citizens clearinghouse, creates an Inspector General position and makes other structural and organizational changes within Citizens.
However, the House amendment does not allow surplus lines insurers to participate in the clearinghouse. Further, it does not impact Citizens’ rates, subject Citizens to bad faith actions, or implement any rate or policy reforms for voluntary market insurers.
Barry Gilway, Citizens’ President and CEO remarked on CS/SB 1770’s passage:
“The Legislature has provided a great tool in our effort to return Citizens to its original purpose as the insurer of last resort. Through the clearinghouse, many policyholders will be able to find more comprehensive coverage at a lower price in the private market. That, in turn, reduces the likelihood and amount of assessments on all Florida policyholders face in the event of a major storm.”
To access complete bill information on CS/SB 1770, click here.
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