Senate President Don Gaetz is calling for special hearings on the $52 million special deal between Citizens Property Insurance and a politically connected upstart insurance company, the latest sign of legislative angst with the state-run insurer.
Last month, Citizens agreed to transfer $52 million to Heritage Property and Casualty, a nine-month old insurance company that has spent hundreds of thousands of dollars on lobbying and political donations to top Republicans, including Gov. Rick Scott.
“The Florida Senate believes the facts and circumstances surrounding the Heritage transaction need thorough investigation so the people of Florida are assured that it and transactions like it are in the best interest of Floridians,” Gaetz, R-Niceville, said in a statement. “As such, as soon as Committee meetings begin this fall, the Senate Banking and Insurance Committee will conduct hearings to investigate and propose ]solutions to the concerns raised by this transaction and any others that might result from Citizens’ attempts to reduce its liabilities.”
Gaetz joins a long list of top Republican lawmakers questioning the $52 million cash transfer from Citizens to a private insurer. House Speaker Will Weatherford, R-Wesley Chapel, said he was “highly concerned” about the deal and would call on a House committee to provide more oversight for Citizens. Gov. Rick Scott’s chief of staff called the board at Citizens “tone-deaf” when it comes to earning public confidence (Heritage donated $100,000 to Scott’s reelection in March, as the $52 million deal was being crafted, but Scott’s office denies pay-to-play). Chief Financial Officer Jeff Atwater also criticized the hastily approved 3-2 vote by the Citizens board to support the unique deal. Scott refused to answer questions this week about whether he supported the deal for his political contributor or not.
Sen. Mike Fasano, R-New Port Richey, has called the deal “corporate welfare” and Rep. Frank Artiles, R-Miami, called it a “get rich” funding scheme. Critics say the deal allows Heritage to retroactively cherry pick policies that have made no claims, thus privatizing profits and socializing losses. They also pointed to a long list of insurance violations at companies run by Heritage's president, Richard Widdicombe.