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Citizens expects to hit depopulation goals in next two years

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Florida House Insurance and Banking Subcommittee (IBS) members heard good news about the state insurer of last resort on Tuesday, and recent legislative reforms have shored it up.

Citizens CEO Tim Cerio said that depopulation of the insurer may be down to desired levels by 2027, saying Florida Office of Insurance Regulation Commissioner Michael Yaworsky thinks 700,000 may be the correct number, while he hopes “it’s in the fives or maybe low sixes.”

“I think we will see whatever that number is in the next two years. Knock on wood,” Cerio said, unwittingly using an infamous Gov. Ron DeSantis phrase of hope that no storms would hit while he ran for President.

Citizens closed 2024 with slightly more than 936,000 policies in force, down from more than 1.4 million policies at the peak in 2023.

Gov. Ron DeSantis has warned about Citizens’ bloat in the past. He previously noted that Citizens was “unfortunately undercapitalized” and that the company could go “belly up” if it had to weather a significant storm. But Cerio’s comments suggest that the company only has so far to shrink.

Cerio noted that in 2018, Citizens had just 427,000 policies, but that was “artificially low” given the shakiness of some private companies.

He also noted Citizens has to shoulder more dangerous properties than a private insurer might and charges “actuarially unsound” rates in much of the state (with Miami-Dade an exception), given its role in the marketplace, as private companies are not “coming in to take the riskiest of the risky.” That said, actuarial soundness gets closer all the time.

Mangrove Property Insurance Co. is the latest company to enter the market, approved by OIR last week. In recent months, ASI Select Insurance Corp., Trident Reciprocal Exchange, Ovation Home Insurance Exchange, Manatee Insurance Exchange, Condo Owners Reciprocal Exchange, Orange Insurance Exchange, Orion180 Select Insurance Company, Orion180 Insurance Company, Mainsail Insurance Company, and Tailrow Insurance Exchange have also entered the market.

Despite the realities of the marketplace, prudent policy has also had benefits for those in the private market.

“We would have had an assessment this year but for the reforms,” Cerio said, referring to laws (HB 1A and SB 2A) passed in 2022 that bolstered the reinsurance market and decreased the window of time for homeowners to file claims against policies. Citizens customers must also move to a private carrier if they receive an offer within 20% above the Citizens rate.

Cerio noted that the reforms have also cut legal costs, saving Florida from an “insurance spiral.”


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Ron DeSantis wants to throw $3M at illegal gambling investigations

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Florida Gaming Control Commission officials say they’re encouraged by Gov. Ron DeSantis’ plans to beef up commitments to crack down on illegal gambling in Florida.

DeSantis released his “Focus on Fiscal Responsibility Budget” proposal for fiscal year 2025-26 Monday and in it, he calls for increased enforcement efforts for the state’s gambling laws. The spending plan totals $115.6 billion. Within that is some funding for the Gaming and Control Commission.

The proposed funding to be considered at the beginning of the Florida Legislative Session when it opens March 4 includes money to regulate and license legal gaming in the state. The funding helps augment more investigations into illegal gambling operations and enforcement of the state’s gaming laws.

The planned spending earmarked for the Gaming Commission includes $748,000 for technology. That tech allocation would fund investigations into illegal gambling outfits in Florida, similar to a crack down announced Monday that sought to stem overseas illegal gambling organizations infiltrating Florida.

Another $225,000 is proposed for increasing staff. The investigative employees are the ones Gaming Commission officials rely on to infiltrate and respond to leads on illegal gambling in Florida.

And some $2.1 million included in the DeSantis proposed budget would help pay for warehouse storage. Illegal gambling investigators often seize equipment, such as slot machines and other gear that needs to be stored, as evidence as investigations and prosecutions progress.

“The Commission is grateful for Governor DeSantis’ steadfast support to successfully execute the mission and vision for gaming in Florida, including an ongoing strategic focus on combatting illegal gaming activity,” said Acting Executive Director of the Commission Ross Marshman. “The ability to improve and leverage resources solidifies our ability to ensure the integrity of legal gaming experiences for Floridians and visitors, as well as to safeguard state revenues for key educational and environmental programs.”

The budget funding for gambling investigation included in the spending plan comes less than two weeks after law enforcement and state attorney officials from across the state appealed to lawmakers for more support on investigations into illegal wagering in Florida. Those officials encouraged state lawmakers to make illegal gambling penalties in Florida stiffer.

“There is zero disincentive for these establishments to close down due to the misdemeanors that they face,” said Chief Ed Cayenne from the Homeland Security Division of the Jacksonville Sheriff’s Office. “They are willing to pay the fines and continue the operations because they are so profitable.”

Cayenne, other law enforcement leaders and several representatives from prosecutor offices from across the state were testifying before the Florida House Industries and Professional Activities Subcommittee Jan. 21.


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Rick Scott says Luigi Mangione should be executed

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The Naples Republican suggested a ‘legitimate conversation’ about health care reform was possible.

Florida’s senior Senator believes the man accused of killing of a health insurance CEO should be put to death, assuming he’s convicted of the crime.

“Well, if you look at what’s happened on television, I mean, he’s not been convicted yet, but it sure looks like (the murder) was just absolutely in cold blood, and he just had a vendetta against him,” Rick Scott said about Luigi Mangione, the 26 year old Marylander accused of killing United Health CEO Brian Thompson in December 2024.

“So at least that’s what you read, so if that’s what happened, I mean, you know, that’s clearly justified,” Scott said. “But violence is never justified.”

Among the federal charges against Mangione: first-degree murder; murder in furtherance of terrorism; criminal possession of a weapon; and stalking. Per Newsweek, Mangione has raised more than $228,000 for his legal defense, as the accused has become a cause celebre for at least some people who feel wronged by denial of health insurance claims and the industry writ large.

Scott added that “violence should never be tolerated,” saying Americans have “got to figure out how to bring people together and have a legitimate conversation.”

“If somebody doesn’t like the way the healthcare system is being delivered, then we get in the middle of it and change it. That’s the right way of doing it,” Scott said on Gabe Groisman’s podcast.

Before he entered politics, Scott was involved in health care himself, including with Columbia/HCA, America’s Health Network, and Solantic Corporation.

Mangione will be in federal court on Feb. 17 and in state court in New York on Feb. 21.


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New report puts Ben Sasse’s spending scandal at UF under the microscope

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In the wake of the University of Florida President Ben Sasse’s financial scandal, UF needs stronger protocols in place for awarding consultant contracts, hiring employees and spending money on food and drinks for school events, according to some of the findings in a new Florida Auditor General’s preliminary audit report.

The Florida Auditor General’s office detailed how Sasse’s office spent millions of dollars on consultants, employees who worked remotely from out of state and lavish parties.

The final audit report is expected to be completed in the next several weeks, auditor manager Jaime Hoelscher said.

UF spokesman Steve Orlando said the school had no comment Tuesday.

Sasse resigned last year from his post because of his wife’s health.

Weeks later, he was under fire and facing accusations of wasting school funds based on reporting from the Independent Florida Alligator college newspaper, which broke the story.

Sasse’s office spent $14.8 million in the 2023-24 school year — a 72% spike from the previous year, the preliminary audit report said.

Sasse’s office spent $6.4 million on a consultant firm, but the audit report said, “University records did not demonstrate the benefit the University received for the consultant services.”

The president’s office spent $563,825 on catering for eight events. The preliminary audit said the prices were not competitive.

“As such, the reasonableness of the costs was not always apparent,” the report said describing a two-hour holiday buffet for 594 people that cost $169,755; a one-hour-holiday lighting party with hot chocolate, cider, peppermint chocolates, and cookies that cost $62,650 for 2,000 guests; and Sasse’s tailgating party for 478 people with a $46,449 tag.

Meanwhile, Sasse’ office hired 24 people from Feb. 6, 2023 to June 30, 2024.

“The contracted annual salaries ranged from $75,000 to $687,000 and averaged $249,931. Our examination of University records and discussions with University personnel disclosed that University employment practices could be improved,” the preliminary audit report said, noting 14 of those positions didn’t have job descriptions.

Many of the positions were paid above market value and the university did not conduct a competitive recruitment hiring process either.

“According to University personnel, the President and 1 other member of University management exercised discretion in establishing the salaries for the 19 individuals,” the preliminary audit report said. “However, although we requested, University records were not provided to identify the basis for those salaries.”

The audit raised other concerns about compensation.

One employee was given a $115,000 relocation bonus and then quit eight months later, while a second employee was paid a $129,000 bonus and then resigned within18 months.

“Given the brief employment periods of the two employees, we asked University personnel whether repayment of those amounts was requested and were informed that University contracts for these employees were not structured to require repayment,” the preliminary audit report said.

The president’s office also paid $100,000 for an employee’s house purchase.

“To qualify for loan forgiveness, the employee must remain employed full-time at the University during the 5-year period. Considering this employee also received an $80,000 recruitment bonus and $25,000 for relocation assistance paid from another University Department, the reasonableness of the $100,000 payment was unclear,” the preliminary audit report said.

And not everyone working for Sasse actually lived in Gainesville, or even Florida.

Thirteen UF employees worked remotely while living in California, Illinois, Maryland, Massachusetts, Nebraska, Tennessee, Texas, Virginia, and Washington, D.C., the report said.

And the preliminary audit report took aim at Sasse’s own pay.

After he resigned, he kept his $1 million annual base salary as president emeritus through February 2028.

“In response to our inquiry in December 2024, University personnel indicated that he did not teach a class in the Fall 2024 but was preparing materials for a course that he and another employee would co-teach in Spring 2025. University personnel further informed us that he was also working closely with the Chair in his role as an external advisor, which included responsibilities such as fundraising, speeches, and recruitment,” the report said. “Absent records to support the basis for the Advisor salary at the same rate of his prior compensation as a University President, the public purpose of such a salary is not readily apparent.”


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