Florida Treasurer and Insurance Commissioner Tom Gallagher announced that Citizens Property Insurance Corporation (Citizens) has taken over as the state’s insurer of last resort for consumers unable to obtain property insurance coverage from the private market.
Citizens, which was created through legislation approved during the 2002 session, is the new entity resulting from the merger of the Florida Windstorm Underwriting Association (FWUA), which provided wind-only coverage to nearly 410,000 coastal residents, with the Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA), which covered approximately 110,000 consumers in need of residential or commercial property coverage. The FRPCJUA was created after Hurricane Andrew for homeowners who could not secure coverage from private insurance companies.
“I commend staff from both the FWUA and the FRPCJUA for making the implementation of Citizens a reality,” Gallagher said. “Consumers will not only see savings achieved under Citizens, they will have access to better coverage and service.”
At Citizens’ first Board of Governors meeting, held in Ft. Lauderdale, Gallagher announced his selection of members to serve on the Technical Advisory Group. Required by the new law to be appointed by Gallagher, the Technical Advisory Group will provide input and assistance to Citizens’ seven-member Board of Governors. Members of the Citizens Board of Governors were appointed by Gallagher in June. Gallagher also announced at the board meeting that Jay Newman, former executive director of the FRPCJUA, will serve as the new executive director for Citizens. Newman, who joined the FRPCJUA in 1995, has more than 26 years of insurance experience.
Gallagher pushed for the creation of Citizens to achieve tax savings and to enhance consumers’ access to comprehensive coverage. “Citizens is structured to be a tax-exempt entity, resulting in tax savings of up to $100 million annually,” Gallagher said. “These savings will help shore up reserves to pay claims.” Citizens also has the ability to issue tax-free bonds in the event a catastrophic storm makes landfall in Florida, Gallagher added.
The legislation creating Citizens (Senate Bill 1418), sponsored by Senator Rudy Garcia (Miami-Dade) and Representative Jeff Atwater (Palm Beach), also provided rate relief last month to FWUA customers by placing a 10 percent rate cap on the 40 percent rate increase that was scheduled to take effect July 1.
Topics Florida Carriers Legislation A.J. Gallagher
Was this article valuable?
Here are more articles you may enjoy.
Update: Beryl Rakes Mexico’s Yucatan With Hurricane Winds and Heavy Rain 
State Farm Seeking Large Rate Increases in Wildfire-Prone California 
Three Charged With Helping Agents Cheat on Florida Insurance License Exams 
US Roof Maintenance Lags: Hanover 
