"Policyholder Decries 'Insane' Hurricane Tax Warning by Citizens Insurance"
Citizens Insurance policyholders in Florida are receiving notices about a potential "hurricane tax" that could be imposed if the state insurer of last resort runs out of funds. The tax, which could be as high as 45% of premiums, has sparked outrage among policyholders who argue that they are already paying high premiums. Citizens Insurance has been taking on policies at a record rate and its exposure to large claims has raised concerns. The company is offering take-out offers to lower its policies by moving them to private insurers, but many customers find the offers expensive. In extreme financial situations, the assessment program could also result in surcharges on all private insurance policies in the state.