In December, Florida’s state-run insurance company dropped a $350 million policy take-out plan after widespread criticism that it amounted to corporate welfare. Last week, the board of Citizens Property Insurance Corp. approved a $52 million policy take-out deal that amounts to corporate welfare.
Heritage Property and Casualty Insurance, which is less than a year old, can assume as many as 60,000 Citizens policies. The vote by the Citizens board was 3-2, which means that the deal was approved by less than half of the eight-member board. The vote came before state insurance regulators had issued their final evaluation of Heritage. The vote came two months after Heritage donated $110,000 to Gov. Scott’s reelection campaign. One of the governor’s two appointees to the Citizens board made the motion to approve the deal, which did not go through the usual review by the board’s committees. Tom Gallagher, a former state insurance commissioner, lobbies for Heritage.
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