Two Florida companies have been approved to remove anadditional 60,000 policies from the state's residual insurer,according to the Office of Insurance Regulation (OIR).

These newest bundles are in addition to 150,000 policies to be potentially takenoff of the books of Citizens Property Insurance Corp. by fourOIR-approved domestic insurers.

The OIR says this year 84,339 policies have already been removedfrom Citizens—the state's insurer of last resort which has grown tobecome Florida's largest writer of property insurance.

If all the policies are removed, 2012 could be the best year for depopulating Citizens since2008.

However, Citizens policyholders have the option of staying withthe state-run insurer. The option remains one of the barriers to asuccessful depopulation program in Florida, since Citizens'rates in many areas are competitive with the private market.

Nevertheless, the willingness of private domestic carriers totake policies from Citizens is significant, says Kevin McCarty,state insurance commissioner.

“It is encouraging to see the commitment of these domesticcompanies to bring more jobs as well as additional insurancecapacity to Florida,” says McCarty in a statement.

Tampa's American Integrity Insurance Co. has been added to thelist of approved “take-out companies”—now at five this year. Itwants to remove as many as 50,000 policies from Citizens.

Making up the balance of policies in this newest announcement isFlorida Peninsula Insurance Co. of Boca Raton. The insurer hasadded 10,000 to its original take-out bundle of 35,000 announcedearlier in September.

Homeowners Choice P&C Insurance Co. is looking to take up to75,000 policies; Southern Fidelity is in line for 30,000 policies;and Southern Oak Insurance Co. wants 10,000.

With policyholder approval (or if they do not respond either wayto a take-out notice) the policies will be removed on Nov. 6.Notices will be sent Oct. 1, says the OIR.

Insurers may have stepped up to take more policies because doingso could give them the first shot at Citizens' book of business.McCarty has sent a letter to Citizens urging the insurer to givepriority to insurers that have already been approved to take outpolicies without financial incentives.

Citizens has approved a plan to loan its surplus toinsurers willing to assume its policies. The low-interest, 20-yearloans are meant as an enticement since insurers must provide thesame coverage, at the same rate, as Citizens once the policy isassumed.

Studies have shown rates at Citizens are not actuarially soundoverall, but there are pockets where rates at least match thosefound in the private market. Getting a first crack at the bestrisks at the best rate could be beneficial.

The OIR must review and approve the plan. It remains unclear whowill ensure that no one insurer assumes too much risk relative tothe loan it receives from Citizens.

Citizens President and CEO Barry Gilway predicts as many as300,000 policies could be removed under the loan program.