For Immediate Release: Tuesday, April 2, 2013 Contact: Sarah Bascom, sarah@bascomllc.com, 850.294.6636 Lyndsey Cruley, lyndsey@bascomllc.com, 850.524.

5006

Insurance Agents Support Measure to Allow Mutual Insurance Companies to Aid in Depopulation Efforts of Citizens
LAAIA & PIA Urge Policymakers to Support New Mutual Insurer Incentive Program Tallahassee, Fla. The Latin American Association of Insurance Agencies (LAAIA) and the Professional Insurance Agents (PIA) today urged lawmakers to approve a new mutual insurer incentive program. If approved by the Florida Legislature, the program would allow startup mutual insurance companies to participate in a surplus note program to aid in the depopulation efforts of Citizens Property Insurance Corporation (Citizens). This measure is currently contained in Senate Bill 1770 and will be voted on in the Senate Appropriations Committee tomorrow, Wednesday, April 3, 2013. We applaud the Florida Senate for including a measure in Senate Bill 1770 that creates a pathway for new mutual insurers to enter Floridas property insurance marketplace and aid in depopulating Citizens, and we look forward to the Senate Appropriations Committees discussion on it tomorrow, said Tony Martely, president of the LAAIA. It is vital that our states policymakers continue to move the new mutual insurer incentive measure forward, as it is a consumer-friendly policy that, if adopted, will not only benefit those who will have the opportunity to leave Citizens for a reliable, trusted mutual insurer, but will benefit all Floridians by reducing Citizens aggregate exposure. Citizens should be commended, as their current depopulation programs are successful; yet, the inclusion of a new mutual insurer incentive program could expand their existing portfolio of depopulation programs and benefit all Floridians by reducing Citizens aggregate exposure, said Kim Gray, president of the PIA of Florida. In real numbers, if the new mutual insurer incentive program was approved by the legislature, Citizens would have the ability to loan $25 million to a new mutual insurer and transfer $350 million of risk this is a better return on investment than Citizens currently gets from existing depopulation efforts. As insurance agents who work with consumers on a daily basis, we see the importance of enacting this smart proposal and are hopeful the legislature will adopt it this session. To learn more about the LAAIA and PIA, please visit www.laaia.com and www.pia.org. ###