Monday, Oct 15,2012
By:
Amid a wave of criticism from consumer groups and elected officials, Citizens Property Insurance Corp. of Florida has elected to review its surplus note loan program.
According to the Sun-Sentinel, the governing board of the homeowners insurance goliath was set to vote on the program at some point this week, but has now elected to postpone the vote in favor of further review.
The program involved offering to loan several private insurance firms a total of $350 million as incentive to take approximately 300,000 policies out of Citizens' hands. It is part of a large initiative on the part of Citizens to shrug off many of the policies on its shoulders. As it stands, the giant public firm currently holds about 1.4 million homeowners insurance policies in the state of Florida. Due to outcries from government officials, it has taken steps to remove some of those policies in order to reduce public risk.
However, the proposed surplus loan program has been too rushed, according to its critics, and deserves further attention in order to prevent financial mishaps.
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