Associated Press Release
TALLAHASSEE, Fla. (AP) -- Nearly 400,000 policyholders in Florida could soon find themselves with a new insurance company.
State regulators last week quietly signed off on a plan to let 10 different insurance companies take over nearly a third of all Citizens Property Insurance Corp. policyholders this November.
Customers are automatically shifted to the new company unless they object.
The state-backed Citizens is the largest residential property insurer with 1.22 million policyholders.
Gov. Rick Scott and other politicians have been pressuring Citizens to scale back its size due to fears a major storm could wipe out its reserves.
One of the companies slated to get 50,000 policies is Heritage Property Insurance and Casualty. The start-up insurer struck a controversial $52 million deal with Citizens earlier in the year to absorb policies.