TAMPA, Fla. (WFLA) — A United States Senate panel has launched an investigation into Citizens, Florida’s state-owned and operated insurer of last resort.
The committee wants to know if taxpayers across the country would be on the hook to bail out the Florida insurer if a big hurricane hits.
8 On Your Side Investigator Mahsa Saeidi has both sides.
On Thursday, the Committee Chairman Sen. Sheldon Whitehouse sent a letter to Gov. Ron DeSantis, Insurance Commissioner Michael Yaworksky and Citizens CEO Tim Cerio.
Sen. Whitehouse writes the situation “appears to have grown particularly dire…” in Florida.
Citizens has taken on too many policies. That’s risky because if they can’t pay out claims, Citizens is allowed to levy an assessment—or a special tax—on all Floridians.
The senator took things one step further, writing “it is entirely possible that state leaders might ask the federal government for a bailout.”
Now, Florida has three weeks to hand over documents about the company’s assets, plans, and policies.
A company spokesman told 8 On Your Side that Citizens can pay out claims and in fact, for the first time in years, Citizens is actually seeing its policy count decline.
“More policies have been removed through depopulation this year… than in 2016 to 2022 combined…” the representative said.
Meanwhile, Gov. Ron DeSantis’ team is calling the inquiry a “political hit.”
Citizens said they first learned about the letter from the news, not from the Senate committee.
It was a months-old draft, but it was released on debate day, when Gov. Ron DeSantis faced off against California Gov. Gavin Newsom.
8 On Your Side will continue to follow this story.