Recently, the Florida Association of Insurance Agents released a white paper to inform consumers of the risk of assessments they face as a result of legislative changes to Citizens Property Insurance Corporation. The paper is not designed to address a Citizens' deficit that may or may not occur; rather, it emphasizes how such deficits could affect consumers and the private market.

Citizens has been given a high profile of late and is now an option to the standard market, but there are differences in coverage and a potential for policyholder assessments, which needs to be taken seriously by all consumers. While other government entities, such as the Florida Hurricane Catastrophe Fund and the Florida Insurance Guaranty Association, are also subsidized with consumer assessments, Citizens' assessments are given more emphasis because recent legislative and regulatory changes make potential policyholder assessments more likely and more substantial. Conversely, these same changes that impact Citizens' policyholders negatively reduce both the likelihood and amount of any assessment for consumers who purchase their insurance in the standard market. The purpose of this paper is to bring that difference to light so that consumers can make a fully informed choice before purchasing a policy from Citizens.

Citizens' Background