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Citizens Insurance Expanding?

Friday, May 29, 2009 10:47:53 AM
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Citizens Expansion

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Florida lawmakers continue their controversial push to expand state run Citizens Insurance.

The agency was once the insurer of last resort in Florida, but now has become a primary competitor to the private companies.
    
Supports say expanding citizens is the only way to keep insurance affordable.

The insurance industry, though, says it just can't compete with the state. If a big hurricane hits, we'll all end up paying for it.

"When the hurricane blows, it's going to cause damage, and somewhere, somewhere that has to be paid for,” Gary Landry from the Florida Insurance Council said. “You can pay for it now or you can pay for it later. What the state is done is said ‘we'll pay for it later.’"

Beginning June 1, citizens will begin offering commercial policies on a much broader scale than before, which could boost the assessment fee even higher.
 

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