DeSantis Signs Citizens Insurance Bill

Gov. Ron DeSantis signed 20 bills on Friday, including a bill that could expand efforts to move policies from the state’s Citizens Property Insurance Corp. into the private market.

The measure (HB 1503), in part, affects a “depopulation” program that Citizens is using to try to shed policies after becoming the largest property insurer in Florida in recent years. According to the bill, surplus lines carriers–insurance companies that do not have to abide by the same rules as more traditional insurers when it comes to things like rates–might withdraw some non-homesteaded properties from Citizens.

The bill, which will take effect on July 1, will require surplus lines insurers to have rates approved by the state for Citizens take-out purposes. To qualify for the Citizens depopulation program, surplus lines carriers will also need to have financial-strength ratings of at least A- from the AM Best ratings agency.

Citizens had about 1.19 million policies as of May 3, according to data on its website. DeSantis’ office announced the legislative signings Friday night.

This article originally appeared on Florida Realtors

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