Following a letter sent by the incoming Speaker of the House criticizing a decision of the Board of Directors of Citizens Property Insurance Corporation's to use $350 million of its $6.2 billion reserves to entice private insurers to underwrite some of its current 1.4 million policies, the company decided to temporarily delay the application of the loan program until more vetting (this time by a private financial firm) was done.
However, according to miamiherald.com, although the company's President, Barry Gilway said they would slow down the implementation of the loan program while the private financial company reviews it, he stopped short of complying with a request from the incoming Speaker of the House, Will Weatherford, R-Wesley Chapel, to have the plan submitted to legislative approval.
The situation is shaping up to look like a parent/child crossing of swords, with Citizens seemingly adamant to implement the loan program that would help it shed a few thousands of the 1.4 million policies it currently underwrites and the company's creator, the Florida Legislature, bent on exerting more control on how its "child" spends people's money.
Citizens Board member John Rollins stated that "time is a factor, we have a clock in this game", apparently referring to how long it would take for the legislature to review the program. On the other hand, Rep. Weatherford has gained the support of another important legislator, incoming Senate President Don Gaetz.
Not surprisingly, Governor Rick Scott, the man that sparked Citizens plan to shed policies, prompting the company's decision to lend money to the insurance companies that supported his campaign, weighed in saying that he believed the company's board had the authority to make the decision without legislative oversight...
Consequently, board members have indicated that that the company plans to approve the plan in December, months before the Florida Legislature resume sessions for the 2013 session.
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