Approved “take-out companies” in Florida have been given the go-ahead to remove another 65,990 policies from the state’s bloated insurer of last resort.
The policies are set for depopulation from Citizens Property Insurance Corp. in January.
This newest round of take-outs approved by the state Office of Insurance Regulation is in addition to 310,000 policies the office has approved for depopulation in November and December.
The OIR says 87,337 policies have been taken off of Citizens’ books as of October 2012. Policyholders of Citizens—which has far-outgrown its intended means to become the state’s largest provider of property insurance—have the option to remain with the state-run insurer.
According to OIR, the recently-licensed Heritage Property & Casualty Insurance Co. has added 20,000 policies to its initial request to take 60,000 from Citizens.
Southern Oak Insurance Co. has been approved to remove another bundle of 10,000 policies in January to go along with a 10,000 bundle it was approved to take in November.
Added to the list of take-out companies is United Property & Casualty Insurance Co. The insurer has been green-lighted to remove 20,990 policies in January. But United P&C is no starnger to the take-out process. It was approved to remove two bundles in 2011.
The other take-out companies included in the November-January take-out approvals are: Florida Peninsula Insurance Co.; Homeowners Choice Property & Casualty Insurance Co.; Southern Fidelity Property & Casualty; and American Integrity Insurance Co. of Florida.
Each company is based in Florida.
Companies looking to potentially remove a total of 375,990 policies from Citizens from November to January are doing so without the financial incentives proposed by Citizens as part of a controversial plan to loan its surplus.
Outside advisors are reviewing the plan.