R Street urges Florida Citizens to remain vigilant on mitigation credits
TALLAHASSEE, Fla. (Aug. 17, 2012) — The R Street Institute today encouraged Florida’s Citizens Property Insurance Corp. to maintain vigilance in its efforts to ensure that policyholder mitigation discounts are properly applied and not to yield to political pressure to look the other way.
Citizens Chief Executive Officer Barry Gilway announced Aug. 17 that – in response to concerns raised by policyholders, agents and, particularly, state lawmakers – the state-run insurer was making changes to its property reinspection program to improve communication about the process, offer free follow-up inspections and enhance the dispute resolution process.
While R Street applauds efforts to ensure that consumers are properly served and fully understand the mitigation credits for which they might be eligible, it is essential that Citizens be allowed to properly apply discounts as called for in Florida law. Gilway noted during an Aug. 17 press conference that more than 70 percent of the cases where inspectors found discounts were improperly applied involved applications that failed to account for recent statutory changes to the credits.
“For the three-quarters of Floridians who are not Citizens policyholders, it remains distressing that some are getting improper discounts off of rates that are already far below what actuaries indicate they should be,” said R Street Florida Director Christian Cámara. “Indeed, the biggest impediment to both Citizens and its private sector competitors offering true market-based discounts for mitigation is that they still aren’t allowed to charge actuarial rates.”
R Street is a non-profit public policy research organization that supports free markets; limited, effective government; and responsible environmental stewardship. It has headquarters in Washington, D.C. and branch offices in Tallahassee, Fla.; Austin,Texas; and Columbus, Ohio. Its website is www.redesign.rstreet.org.
