Insurance Law

According to the Miami Herald a law maker is thinking of taking reserves away from Citizens (the state owned insurer of last resort) to capitalize new insurers. 

Two things to note here.  First, Citizens is still under capitalized in a big way. So taking away some of its reserves to put into the private market seems crazy. Essentially, the state would be taking money from an under-capitalized company to subsidize a private market company. This isn't any different than subsidizing Citizen's customers by keeping prices artificially low. Second, Florida is terrible about picking companies to give money to.  A major Florida player, POE, was essentially  started by the state through the institution of Citizen's previous take out program.  POE is, ironically, never more......