Florida's so-called "last-resort insurer," Citizens Property Insurance Corp., is the Sunshine State's largest property carrier but it recently approved a plan to loan its surplus to private "take-out" insurance companies willing to assume bundles of policies.
The loans are a different idea but various forms of a depopulation program—each with the intention of ridding Citizens of some risk—have been around since shortly after Citizens was created.
Insurers told the the state auditor that Citizens' premium rates, the consumer choice opt-out law, and the availability/affordability of reinsurance have been barriers to successfull, long-term take-outs.
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