Previously we discussed how insurer Citizens Property Insurance Corp (run by the state of Florida) was gearing up to resume policy cancellations and nonrenewals beginning on the 15th of next month. After the CFO of Florida urged the last-resort insurer to reconsider its decision due to the COVID-19 pandemic and being in the middle of hurricane season, Citizens has decided to change its mind. The insurer will now lengthen its hold on cancellations and nonrenewals for the rest of the year.
Initially, Citizens announced in an agent newsletter earlier this month that it will restart the processing of cancellations and non-renewals next month to resolve a large rise in the number of premiums that were past their due date.
Citizens also indicated that the figure has since dropped to pre-COVID-19 levels now hover around seven percent. According to the source Insurance Journal article, the Florid CFO stressed that policyholders will still be expected to pay the amounts they owe but policy cancellation “should not be an option.”
To read more, please visit https://www.insurancejournal.com/news/southeast/2020/07/28/577046.htm.
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