The Florida Legislature's passage of a measure allowing the state-created property insurer of last resort to assume more risks is a dangerous financial move for businesses and taxpayers, insurance industry representatives warned.
They voiced their alarm after Friday's windup of the Legislature's session with an expansion of the Citizens Property Insurance Corporation allowing it to provide coverage to consumers if a private insurer's rates are more than 15 percent higher than comparable coverage from Citizens.
Previously, Citizens could offer coverage if the rate was 25 percent higher. In addition, the bill–SB 2498–freezes Citizens rates until Jan. 1, 2009.
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