Just last year Citizens was successfully depopulating, but now Assignment of Benefits (AOB) claims threaten to run private insurers from South Florida, leaving Citizens the insurer of last resort for windstorm insurance once again.

According to an article in the Miami Herald, “State lawmakers have taken up the issue but have failed to make progress. This May marked the third year in a row that a bill on AOB reforms died in the Senate without a hearing.”

Initially Citizens denied that the AOB crisis was the reason for the increase in Monroe County, and across the state, for 2017.  The Miami Herald quotes a spokesman from the Office of Insurance Regulation:  “The abuse of AOBs is creating a significant issue for Florida insurance consumers. Unless this abuse is addressed, consumers will likely see increased premiums, reduced choices of coverage and reduced policy options. AOBs were the top priority of the Office this year as we feel this is the single “biggest threat to the health of the property insurance market.”

Read the full Miami Herald article:  Wondering if your homeowner’s insurance will protect you_ You’re not alone _ Miami Herald

 

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