NU Online News Service, Jan. 10, 10:36 a.m. EST
Scott R. Wallace, president and chief executive officer of Florida Citizens Property Insurance Corp., has abruptly resigned for personal reasons.
Wallace held the position for six years. His resignation comes as Citizens becomes a major focal point of the state's legislative session, which begins Jan. 10.
The voluntary resignation carries no undertones of controversy, or a hidden politically-related reason, says Citizens spokeswoman Christine Ashburn.
"There's no story like that here," she says. "This was a decision he made with his family." Wallace had a particularly difficult year personally, Ashburn adds.
Chairman Carlos A. Lacasa, in a statement, says Scott "has led the company through a complex ramp up the infrastructure needed for Citizens to provide the services and possess the claims-paying ability that is so essential to our state's housing industry."
A national search will soon be underway to find Wallace's replacement, Ashburn says. Wallace will remain at Citizens until April 6.
Citizens was formed as the state-run, last-resort insurer for those who could not find affordable insurance in the private market. But due to a number of factors, including that rates were frozen for several years, many more residents qualified for a Citizens' policy and it has grown beyond its means to become the largest property insurer in the state.
The insurer will be one of the focuses as lawmakers meet in Tallahassee this week. Many seek to find ways to reduce Citizens' exposure and find a way to allow the corporation to increase rates in order to find actuarial soundness.
Citizens is currently assessing its risk-transfer plan, which could lead it to buy more private reinsurance and issue its first catastrophe bond. It has also taken other steps in an attempt to decrease it probable maximum loss.
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