Proposed Language Would Statutorily Limit Agent Commissions on Citizens Policies

February 21, 2012

Last night, a proposed committee substitute to House Bill 1101 by Representative Mike Horner (R-Kissimmee) was filed that included significant changes to Citizens; including a limitation on agent commissions, the requirement of a HO-8 policy, and the creation of additional paperwork burden on agents.

For details on the most concerning provisions of the proposed changes, click here.

This misguided amendment relies on baseless assumptions that there is some sort of financial incentive or ease for agents in placing business with Citizens. In fact, quite the opposite is true. Agents receive lower net commissions on a Citizens policy that on any other policy they write, despite having to handle virtually every policy at renewal to stay on top of the onerous load of paperwork that affirms what we already know - there is simply no other market for these risks that will provide like coverage and price.

This morning, your PIA of Florida advocacy team, lead by David Daniel, participated in a meeting with Representative Horner to ask him to withdraw this damaging language. That effort continues and we will work to remove or stop it at all costs to ensure that it doesn't become law.

We are also communicating with members of House and Senate leadership on this issue and will continue to vigorously fight for your rights on this matter.  Simply put, there is no more basic reason why the we exists; to fight - with all that we have - mistaken attempts to blame independent insurance agents for the growth of Citizens.

Please stand ready to assist as we aggressively work to eliminate these changes and encourage your colleagues to get off the bench and get in the game!  Your support of our associations is what makes it possible for us to have a voice in Tallahassee and not have our workloads simultaneously increased while our means for paying for our services are simultaneously slashed.

Forward this e-mail to fellow agencies that are not currently members and ask them to join the fight and rally with you to protect our industry.  By joining us today, they provide additional resources and voices in support of this critical effort, sending a clear message to Tallahassee that agents are not going to be their scapegoats.


Contact your State Representative and Senator to let them know you will not stand for this!   To find out who your Florida elected officials are CLICK HERE.


Reposted from the LAAIA (Latin American Association of Insurance Agencies)