Citizens Insurance or as our new Givernor Rick Scott says” The Florida taxpayer’s Insurance” is now spending 400 million on re-insurance on the 3% chance it actually needs it. To go along w/ this the Citzens board based on a recomendation from the Florida CFO and the Insurance commissioner Kevin McCarty have all agreed this is a necessary expense for the Florida cat-fund as well.This will total about 850 million overall and how will this get paid. It looks like the new premium increase yet to be determined will be affected by this. Citizens has never purchased Re-insurance, but w/ the pending Hurricane season just around the corner and the funds not in good shape this was a necessary evil. All other carriers do carry re-insurance and the cost is also passed on, but this is why Citizens Insurance has been so competitive, but times are changing. Please read the full article below and remember to call L & S Insurance for all your Insurance needs.

http://www.theledger.com/article/20110511/NEWS/110519871

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