Citizens Insurance Approved For Another Round Of ‘Takeouts’

July 14, 2015

Another 81,050 policies have been approved to move to the private insurance industry from the state-backed Citizens Property Insurance Corp.

The state Office of Insurance Regulation has announced another round of private-insurer “takeouts,” this time going to three companies — Heritage Property & Casualty, Southern Oak and United Property & Casualty.

Heritage, which has quickly grown to the state’s fourth-largest insurance company, is in line to receive up to 40,000 personal residential policies and 50 commercial residential policies. Southern Oak can pick up 15,000 personal residential policies. United Property has been approved for 25,000 personal residential policies and 1,000 commercial residential policies.

The “takeouts” are scheduled to occur September 15 for the 1,050 commercial residential policies and September 22 for the personal residential lines. Based upon prior takeouts, not all the targeted policies will change hands.

Private insurers typically select the least-risky policies. Also, policyholders are allowed to reject takeout offers. The takeout process is designed, at least in part, to help Citizens shed policies and risk.

Citizens reported that it had 590,984 policies as of May 31, a vast decline from a high of 1.5 million policies in 2012.

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Written by William Reynolds · Filed Under News