Following up on actions in the Senate last week, the House Insurance and Banking Subcommittee on Tuesday approved a measure that changes the way Citizens Property Insurance Corp. pays for catastrophic hurricanes when it exhausts its surplus, reports the News Service of Florida. By a unanimous vote, the committee approved HB 1127, which like its Senate counterpart, SB 1346, reduces from 6 percent to 2 the regular assessments on coastal accounts and eliminates it for other residential and commercial accounts. The bill would make up the loss of revenue by shifting the repayment of losses by levying emergency assessments on a wider pool of policyholders and lengthening the repayment period. Citizens now has about $12.8 billion available to pay claims until it would be require to seek assessments to pay claims. Meanwhile, the cost of a one in 100 year storm would be $23.2 billion
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