Mar 8, 2007 6:10 pm US/Eastern
Citizens Customers Receive Refunds
But Allstate And Nationwide Plan Another Round Of Cancellations.
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Florida (CBS4) ―
Florida homeowners insured by state run Citizens Property Insurance are finally getting some good news.
The first refund checks from the so called 'insurer of last resort' have been sent out, some for as much as $650-dollars. Refunds are being paid to Citizen's customers who paid a higher premium to the company earlier this year before the rates were rolled back. Customers who only paid a part of their premium will receive a credit.
Those not entitled to a refund check, or credit, can take comfort in the fact that they will not have to pay a 20-percent increase planned by the company, and then banned by the state.
Policyholders who have questions about Citizen's refunds can call a hotline set up to answer their queries. That number is 866-411-2742.
But while Citizens is sending out refund checks to their customers, some other insurance companies are readying to send out a very different type of notice – a cancellation notice.
According to the Florida Department of Insurance, more than 140-thousand homeowners who have Nationwide or Allstate are targeted for cancellation next week.
In accordance with state law, insurance companies must file for new rates by March 15th, after that they are free to cancel policies.
Next week after they complete their filings, Allstate, the state's second largest insurer, is planning to cancel 106-thousand policies, while Nationwide plans to drop another 38-thousand.
The only good news for Nationwide customers is that those who aren't cut can expect to see their premiums drop by 5-percent.
(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)
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