TALLAHASSEE, FL – The Florida director of The Heartland Institute’s Center on Finance, Insurance, and Real Estate today hailed the committee passage of a Senate proposal that changes the name of the Citizens Property Insurance Corporation to the Taxpayer Funded Property Insurance Corporation.
Citizens, a state agency, is the largest writer of homeowners insurance in the state of Florida and charges rates that, according to its own actuaries, are more than a third “inadequate.” Citizens might need a taxpayer-funded bailout following a major storm. A private company that charged rates similar to those charged by Citizens would almost certainly be shut down be shut down by the Office of Insurance Regulation.
“Changing Florida’s state-run insurer’s name to ‘Taxpayer Funded Property Insurance Corporation’ sends a clear message to residents that they are on the hook for the losses this entity would incur following a hurricane or series of hurricanes,” said Christian Cámara, director of Heartland’s Florida office. “We hope this move will serve to raise the awareness necessary to reduce the risk this ill-conceived state policy has foisted on taxpayers.”
Cámara can be reached for further comment at 305-608-4300 or [email protected].
The Heartland Institute is a 27-year-old national nonprofit organization based in Chicago. Its mission is to discover, develop, and promote free-market solutions to social and economic problems. For more information, visit our Web site at http://www.heartland.org or call 312/377-4000.