Property Insurance Change Creates Uncertainty

In a 3-2 vote, the board of state-run Citizens Property Insurance agreed to let newly-formed Heritage Property and Casualty Corporation take over 60,000 policies and pay the company 52 million dollars to do it.

“The deal has been in the works for several months,” said Michael Peltier.

The award comes after the president of Heritage donated more than 100,000 dollars to Governor Rick Scott’s campaign. Scott is on a trade mission, but, chief of staff Adam Holingsworth responded to critics with a statement, saying:

“Any assertion that our office influenced the Heritage risk transfer decision by the Citizens Board is [today] is outrageous.”

Citizens echoed the same message.

“There’s been no pressure from anyone outside of Citizens. Whether that be the legislators or the governors office.”

The Office of Insurance regulation signed off on the deal but refused comment.

When trying to reach out to President Richard Widdicombe’s office, after being transferred around person to person, no one was made available to answer any questions.

More than one of Widdicombe’s previous companies has been cited for dozens of violations. More than a quarter million in fines were assessed, but, state-run Citizens Insurance stands behind the boards decision on transferring the policies.

“They may be new to the business, but they’re not new to the industry.”

The deal cuts Citizens overall risk by more than 400 million dollars.

The goal was to have the changes made before the beginning of hurricane season June 1.