Filed Under:Agent Broker, E&S/Specialty Business

A Measure of ‘Last Resort’

Proposed law would allow surplus carriers to pick up policies in the Florida homeowner’s market

Desperate to shrink its dangerously overexposed state-run insurer, Florida is floating legislation to allow eligible surplus-lines insurers to take policies from Citizens Property Insurance Corp., the state’s ostensible last-resort underwriter.

Homeowners must first look to the private market and can only go to Citizens if rates found in the private, or admitted, market are 15 percent higher.

Meeting that rate-differential threshold became much easier when, after an outcry from consumers, state mandates froze the last-resort insurer’s rates—allowing more residents to tap coverage and to get cheaper premiums than those found in the private market. Citizens’ policy count has ballooned since then.

Shaw isn’t comfortable with the fact that surplus carriers are not covered by FIGA, and he doesn’t trust the freedom of rate and form they enjoy.

“Upon renewal, rates are going up—and no one has any say about it,” he says.

Featured Video

Most Recent Videos

Video Library ››

Top Story

Baby, it’s cold outside! Here are 6 tips for staying safe in sub-zero temperatures

Extreme temperatures bring risks to people and property. Make sure you are taking care of yourself and your surroundings.

Top Story

5 ways insurance agencies can improve their websites

The way people use the Internet has changed over the past few years. Has your website changed with it?

More Resources

Comments

eNewsletter Sign Up

Specialty Markets Insight eNewsletter

Receive updates and analyses on hard to place and challenging coverages. Sign Up Now!

Mobile Phone

Advertisement. Closing in 15 seconds.