In a notable event, Governor Ron DeSantis of Florida affixed his signature to a multitude of bills, one of which pertains to potentially amplifying endeavors aimed at transferring policies from the state’s Citizens Property Insurance Corp. into the realm of private enterprise.
This particular legislative enactment, denoted as HB 1503, holds ramifications for a strategic initiative termed as “depopulation,” orchestrated by Citizens as a means to divest itself of policies subsequent to its ascent as Florida’s foremost property insurer in recent times. As per the provisions of the bill, certain non-homesteaded properties stand eligible for migration from Citizens to entities known as surplus lines carriers, which operate within a regulatory framework distinct from that of conventional insurers, particularly in regard to matters such as premium pricing.
Scheduled for implementation on July 1, the aforementioned legislation mandates that surplus lines carriers obtain state approval for their premium rates to facilitate their participation in Citizens’ depopulation initiative. Furthermore, these carriers are obliged to attain a minimum financial strength rating of A- from the AM Best ratings agency in order to qualify for participation in said program.
Statistics indicate that as of May 3, Citizens administered approximately 1.19 million policies. The series of bill signings conducted by Governor DeSantis’ office was announced on Friday evening.
