Former Florida CFO, (and democratic candidate for governor), Alex Sink wrote an editorial for the Tampa Bay Times last week, calling for a stop to the most recent Citizens Insurance deal with Heritage Property and Casualty.
In the article, Sink cites five concerns with the deal:
1) The proper way to reduce Citizens is to establish a Request for Proposal process that private insurers can use to present their best proposals for depopulation.
2) Require a majority of the board to approve a business transaction. This deal with Heritage was only approved by 3 of Citizens’ 8 board members
3) The Office of Insurance Regulation should review this deal and issue an opinion on the amount of bonus and subsidy being provided to Heritage
4) It should be confirmed that Heritage has purchased a valid reinsurance contract.
5) Heritage made significant contributions to Governor Scott’s reelection campaign, and the fact that the deal was offered to only Heritage, and not other insurers.
This deal with Heritage stinks, for all the reasons listed by Ms. Sink. Florida policy owners deserve better from their state run insurance company.