Fla. Senate Passes Citizens Reform Measure
TALLAHASSEE (CBSMiami/AP) — Despite worries of a financial burden on Florida policyholders, the Florida Senate has passed a bill that would allow pricey and largely unregulated out-of-state companies to remove homeowners' insurance policies from Florida's state-backed insurer.
The final outcome remains in doubt since the bill still needs the House to agree with the changes made Monday by several Senate amendments. The Senate passed the measure (HB 245) on a 26-8 vote Tuesday without debate and also requires that consumers receive a detailed written explanation in the difference between companies.
"That was probably the most pro-consumer amendment that could've been adopted," said Sen. Mike Fasano, a Republican from New Port Richey who has led the charge to defeat the bill in its original form. "We're all for depopulating Citizens, but you don't depopulate by deceiving the rate payers."
Sen. Garrett Richter says changes to the proposal have made it less attractive for surplus line carriers to remove policies from the Citizens Property Insurance Corp. Citizens is Florida's largest property insurer of homes and businesses with more than 1.4 million customers.
Lawmakers have tried for years to shrink Citizens in hopes of reducing the insurer's market exposure and the commensurate risk to millions of Floridians.
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