According to consent orders released by the regulator, the Florida Office of Insurance Regulation has granted requests from eight insurance companies to assume 2,500 residential wind-only policies and 232,535 personal residential multiperil policies from Citizens Property Insurance Corp. since last month.
In this most recent round, American Integrity Insurance Co. made the largest policy request, hoping to accept more than 75,000 home multiperil policies. As to an AM Best study, Orange Insurance Exchange (15,000), Typtap Insurance Co (25,000), Slide Insurance Co (15,000), Monarch National Insurance Co (25,000), and Trident Reciprocal Exchange (16,035) are among the other companies involved in the residential multiperil policy takeout.
A total of 37,500 household multiperil policies and 1,500 residential wind-only policies were authorized for Manatee Insurance Exchange. Two4,000 multiperil policies and 1,000 wind-only policies were sought by Homeowners Choice Property & Casualty Insurance Co.
Homeowners Choice, Slide, and American Integrity could not be reached for comment. This most recent round of takeouts comes after certain of the same insurers’ previous actions. Manatee was allowed to remove 75,000 residential multiperil policies, 2,000 commercial nonresidential wind-only policies, and 1,000 commercial nonresidential multiperil policies in July, while Slide was cleared to assume 75,000 residential multiperil policies.
The authorized takeouts follow the Florida Auditor General’s report from August, which emphasized the necessity for Citizens to strengthen its eligibility and underwriting procedures. According to the research, which examined the carrier’s information technology infrastructure, internal audits, customer service, and claims management, Citizens should improve its procedures to guarantee that its policies adhere to legal coverage limitations.
According to the research, which examined the carrier’s information technology infrastructure, internal audits, customer service, and claims management, Citizens should improve its procedures to guarantee that its policies adhere to legal coverage limitations.
According to the insurer of last resort, private carriers are required to provide replacement coverage at a price no more than 20% greater than the Citizens rate throughout the policy takeout procedure.
Additionally, policyholders are given a deadline by which to accept or reject the revised offer; those who fail to do so will be involuntarily paired with the private insurer whose anticipated premium is the lowest.
There were 1.252 million policies in effect for Citizens as of September 6, a minor rise from 1.25 million on August 31.
