Citizens bills approved by two committees in week 4

Companion bills intended to restore Citizens Property Insurance Corporation back to an “insurer of last resort” were approved by Senate and House committees last week.  Both bills raise the so-called annual “glide path” for increasing Citizens’ rates toward actuarial soundness. 

The current annual glide path is a maximum of 10 percent per policyholder and applies to all lines.  Pending bills would limit the glide path to residential lines only, and would limit annual increases to 20 percent per territory and 25 percent for policyholder, except that the limitations would not apply to sinkhole coverage and private reinsurance costs.

Last week, the Senate version (SB 1714) was approved by the Senate Banking & Insurance Committee, and the House bill (HB 1243) was approved by the House Insurance and Banking Subcommittee.

This summary was prepared by Perry Cone and posted at www.tallyinslaw.com/

Legal Notice and Disclaimer