Misconduct at Citizens

Citizens Property Insurance Corporation, the "insurer of last resort" for Florida property insurance recently fired corporate watchdogs. According to a recent Tampa Bay Times article, the watchdogs found evidence of favoritism, improper compensation and poorly handled investigations.

The article cites large severance packages to employees accused of misconduct, drunken dancing on tables at a company retreat, and hiding, not completing or covering up other investigations. Citizens fired the supervisors responsible for uncovering the malfeasance.

Citizens has faced scrutiny lately for selling off policies to private insurers as low interest loans, lavish spending by executives, and continued improper handling of claims. Citizens is afforded partial sovereign immunity, as a quasi-state entity, and is therefore not bound by the rules that other insurance companies are to deal with their insureds with good faith.

Additionally, Citizens Insurance continually blames the high amount of sinkhole claims for their need to depopulate. However, Citizens has a record $6 billion in cash on hand.