Florida News in Brief

Citizens policy count continues to climb

TALLAHASSEE — Continuing to add thousands of customers a week, the state-backed Citizens Property Insurance Corp. had nearly 1.183 million policies as of Friday, according to newly posted data on its website. Citizens totaled 1,182,904 policies Friday, up from 1,177,027 policies a week earlier and 1,171,033 policies two weeks earlier.

Citizens, which was created as an insurer of last resort, has seen massive growth during the past two years as private insurers have dropped customers and raised rates because of financial problems. By comparison, Citizens had 554,537 policies on Jan. 31, 2021, and 776,790 policies on Jan. 31, 2022.

Judge asked to appoint receiver for insurer

TALLAHASSEE — The Florida Department of Financial Services on Monday asked a Leon County circuit judge to appoint the department as a receiver for United Property & Casualty Insurance Co., which has been deemed insolvent. The department's Division of Rehabilitation and Liquidation filed a petition in Leon County circuit court after insurance regulators last week sent a letter to state Chief Financial Officer Jimmy Patronis to trigger the process.

The St. Petersburg-backed United Property & Casualty has agreed to the appointment of a receiver.

Amid major financial problems in the property-insurance market, the state placed six insurers into receivership in 2022 because of insolvencies. United Property & Casualty has grappled with financial problems for months and announced in August that it would exit Florida's homeowners' insurance market.

Tampa-based Slide Insurance Co. on Feb. 1 picked up 72,000 of United Property & Casualty's policies. Before that move, United Property & Casualty had about 135,000 policies in Florida, according to a Securities and Exchange Commission filing.

While Slide took over the 72,000 policies, it is not liable for claims filed before Feb. 1 by former United Property & Casualty customers.

The insolvency and receivership likely will lead to the Florida Insurance Guaranty Association needing to step in to help pay United Property & Casualty claims. Circuit Judge John Cooper was assigned Tuesday to handle the case.

'AOB' targeted in windshield repairs

TALLAHASSEE — A Senate Democrat on Tuesday filed a proposal (SB 1002) that would ban the practice known as "assignment of benefits" in insurance claims for vehicle glass repairs and replacement. The bill, filed by Sen Linda Stewart, D-Orlando, came after the Legislature in December prohibited assignment of benefits in property-insurance claims.

Assignment of benefits, or AOB, involves policyholders signing over claims to contractors, who then pursue payment from insurers. The insurance industry has long contended that the practice leads to additional litigation and costs. But contractors argue assigning benefits can help consumers, who might not have experience dealing with insurance companies.

Rep. Griff Griffitts, R-Panama City Beach, filed a House bill (HB 541) last month that would ban assignment of benefits for vehicle-glass claims. Stewart's bill also would bar repair shops from offering such things as rebates, gift cards and coupons to customers in exchange for making vehicle-glass claims.