Florida Citizens Property Insurance Corp. says it plans to make up to $350 million available to private insurers willing to assume its policies.
Under a plan approved late last week by the supposed last-resort insurer that is now the state's largest property writer, low-interest 20-year loans would be made available from Citizens' surplus to qualifying "take-out companies"—those approved by the state Office of Insurance Regulation to remove policies from Citizens in order to reduce its exposure.
Barry Gilway, president and CEO of Citizens, says as many as 300,000 policies could be removed under the new loan program—possibly by the start of 2013. If so, the assessment risk over the heads of nearly all Florida policyholders would be reduced $1.2 billion (for a 1-in-100 year event), he adds.
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