Citizens CEO says a push to undo Florida insurance reforms is behind arbitration criticism

"The CEO of state-owned Citizens Property Insurance Corp. on Wednesday lashed out at criticism over over the company's use of an alternative arbitration panel to decide claims disputes. He called accusations of unfairness an effort by some plaintiffs attorneys to overturn reforms that have returned profitability to Florida's property insurance industry. But Tim Cerio, Citizens president and CEO, spent little time discussing a key accusation that the process violates policyholders' constitutional right to have a jury determine resolution of their disputes."

"That claim, in a lawsuit by a policyholder whose dispute was sent to the panel, caused a Hillsborough County circuit court judge to issue an injunction in July preventing the company from using the process while the case proceeds. In a 30-minute discussion during Wednesday's meeting of the Citizens' Board of Governors, Cerio defended the company's use of arbitrators who work for the state's Division of Administrative Hearings to decide disputes over the company's coverage of damage claims."

"Critics have alleged that the system is unfair because new and renewing Citizens policyholders are given no choice but to participate when seeking coverage from the so-called insurer of last resort. They also accuse DOAH judges of ruling in Citizens' favor in more than 90% of cases that advance to a final hearing because Citizens pays their salaries. Last December, the company's Board of Governors approved a contract that calls for the company to spend up to $19.3 million to fund the program through 2027."

Tim Cerio, Citizens president and CEO, defended the company's use of arbitrators from the Division of Administrative Hearings (DOAH) during a 30-minute Board of Governors meeting. Critics claim the mandatory process for new and renewing policyholders is unfair and allege DOAH judges favor Citizens in over 90% of final hearings because Citizens funds their salaries. A policyholder lawsuit contends the process violates the constitutional right to a jury, prompting a Hillsborough County judge to issue an injunction in July. Last December the Board approved spending up to $19.3 million to fund the program through 2027.

Read at Sun Sentinel