NU Online News Service, March 7, 8:10 a.m.EST

Tom Grady, commissioner of the Florida Office of FinancialRegulation, has been tapped to be president of the state'slast-resort insurer.

The Board of Governors at Florida Citizens Property InsuranceCorp. says it unanimously voted to appoint Grady, formervice chairman of the Florida House Insurance, Business andFinancial Affairs Committee, its interim president to replace ScottWallace.

Wallace announced his resignation for personal reasons at the start ofthe year after six years at the helm of what has become the state'slargest writer of property insurance.

A spokeswoman at the time said Wallace's resignation was not dueto controversy, or a hidden politically-related reason.

Wallace will remain at Citizens until April 6. Grady startsMarch 12.

“It is important that we maintain continuity of the board'sbusiness plan as we embark on a national search for a permanentreplacement for Mr. Wallace,” says a statement from Carlos A.Lacasa, Citizens' chairman. “Mr. Grady has graciously agreed tostep-in on short notice and lead the administration on an interimbasis while we implement initiatives aimed at reducing the size andexposure of Citizens.”

Citizens has been one of the insurance-related focuses of thestate legislative session. Gov. Rick Scott has expressed a desireto see the state-run insurer shrink in size—especially since nearlyevery policyholder in the state at risk to be taxed should a largestorm strike the Sunshine State. Citizens has the ability to levyassessments in order to pay claims.

Bills meant to reduce the exposure of Citizens are being mulledby lawmakers now as legislation from the recent past, also intendedto reduce Citizens' exposure, are implemented.

“I am honored to be asked by Chairman Lacasa and the entireboard to sustain and build on their momentum, while operating afirst-class insurance company for our policyholders,” Grady says ina statement.

“Since every Floridian is exposed to higher taxes when the nextbig hurricane or series of storms hits, this is a critical time inCitizens' history,” Grady adds. “I look forward to this challengeto serve all Floridians and earn their trust.”