Florida Office of Insurance Regulation Approves More Weston Wind-Only Citizens Takeouts
May 2, 2013
In an Order signed May 1, 2013, the Florida Office of Insurance Regulation (“OIR”) approved Weston Insurance Company (“Weston”) to remove up to 7,615 wind-only policies (435 commercial, 7,180 personal) from Citizens Property Insurance Corporation (“Citizens”) this month.
This most recent action by the OIR is part of an unprecedented plan to depopulate commercial wind-only policies from Citizens’ Coastal Account (formerly the High-Risk Account).
Under the plan, Weston is authorized to remove 23,000 Personal Residential Wind-Only policies, 3,000 Commercial Residential Wind-Only policies and 5,000 Commercial Non-residential Wind-Only policies from Citizens’ Coastal Account. This accounts for approximately $30 billion in exposure.
The proposed takeout will result in an $840 million decrease in Citizens’ Coastal Account’s probable maximum loss in the event of a one-in-100-year storm.
To view the complete Order, click here.
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