Gaetz Wants Hearings Into Heritage Property Insurance Deal

Florida Senate President Don Gaetz is calling for a special session to look into why the state run Citizens Property Insurance decided to hand over policies to Heritage Property Insurance. Heritage has nearly no track record to take the biggest risk property insurance policies. Heritage has been in existence less than a year. $110,000 to Scott's re-election campaign and now stands to make $52 million from the policies it claimed from Citizens.

Statement from Gaetz.

“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.”

Unsurprisingly, Gov. Rick Scott could not give a straight answer on whether or not he supported the Heritage deal. I noted before straight talk is not Scott's forte.

Reporter: A couple weeks ago, Citizens did a $52 million deal with a nine-month-old insurance company. We know how you feel about Citizens but you haven’t really said specifically how you feel about this unique and new type of deal. Do you support that type of economic activity at Citizens, are you against that specific deal?

Scott: First off, I want to try to do anything I can to try to reduce taxes in our state. As you know, my first year in office we reduced property taxes by over $200 million, so I think that’s a real positive. What Citizens is doing is, Citizens needs to make sure they downsize. They should be the insurance company of last resort. I’ll do anything I can to make sure they keep doing that. As you know I (appoint) two of eight board members and I don’t appoint the chairman. I want them to make sure they constantly look at how do we get them out of the business of being the insurance company of first resort. I want them to be the insurance company of last resort. That’s what they’re set up to do and that’s what they need to do.

Reporter: But, specifically. A couple weeks ago you went line-by-line and looked at budget issues and vetoed things were $100,000. This is a $52 million deal, and you’re the CEO of the state. Should you not look at this deal, specifically, and say, ‘I’m for this deal,’ or ‘I’m against this deal,’ or ‘I have issues with this deal,’ as others have?

Scott: Citizens has a board. I appoint two board members. I don’t appoint the chairman. My expectation is that they go through, and any program like that, they review it. And do the right thing.

The reporter made it easy for Scott by asking if Scott could state if "‘I’m for this deal,’ or ‘I’m against this deal,’ or ‘I have issues with this deal.’" This isn't rocket science. It is difficult for a man that takes pains to avoid the Florida's Sunshine Law and once gave a deposition where Scott the businessman couldn't give an answer to what a market is.

Cusack: Is Orlando a significant market for your company?

Scott (after attorney objects): I'm not sure what a 'market' is.

Scott is incapable of being truthful.

Why Rick Scott Is a Bad Politician

Patricia Mazzei of the Miami Herald pressed Gov. Rick Scott on if he would return the $110,000 campaign contribution from Heritage Property and Casualty Insurance Company. Heritage is set to make $52 million to take 60,000 policies from Citizens Property Insurance. People have asked why the state would let a 9 month old company take over so many policies. Considering Scott's past conflicts of interest it makes skeptics wonder if the campaign donation factored into the decision.

Scott was asked during Miami-Dade County's hurricane preparedness news conference Scott was asked if he would give the $110,000 contribution back to Heritage. Scott again proved himself to be an inept politician by not giving a yea or nay answer. I don't know how many times I have seen Scott stumble when he is being grilled. What is funny is that Scott's spokeswoman Melissa Sellers had no problem giving a direct answer.

"No," Sellers wrote. "And as we said last week, any assertion that our office influenced the Heritage risk transfer decision by the Citizens Board is outrageous."

It would be a lot easier to believe if Scott could answer the question himself. Scott's atrocious skills on the stump is why he is so unpopular and beatable.

Kudos to Patricia Mazzei for trying to get a straight answer out of Scott.

Heritage Deal Hurting Rick Scott

The Republican Party of Florida is playing defense on the deal Citizens Property Insurance Corp. made with Heritage Property and Casualty Insurance Co. Heritage is set to make $52 million from taking 60,000 policies from Citizens. Many people feel that Heritage attaining the policies is quid pro quo from Gov. Rick Scott. Heritage has donated $110,000 to Scott's re-election campaign.Tampa Bay Times columnist John Romano noted Heritage is an insurance company with a dubious track record.

It had to be Heritage's long and distinguished record of service (Nine months and counting!) and the president's intimate familiarity with insurance regulators (Numerous complaints and fines at two previous companies!) that made Heritage more desirable than any other outfit.

The Republican Party of Florida have been playing defense on the Heritage deal. However, even Florida House Speaker Will Weatherford isn't going to defend this Turkey.

"I have serious concerns about the latest takeout agreement between Citizens and the Heritage Property and Casualty Insurance Company, particularly the lengthy backdated payments for coverage that Heritage did not provide," Weatherford said in a statment. "Once again, Citizens did not provide a sufficient advanced briefing to the Legislature, and the proposal was hastily pushed through a sharply divided board."

Scott can't help himself. His crony capitalist side rules his dark heart.

Heritage Property and Casualty Insurance Co. Scores Citizens Policies

Via Daily Kos: the Tampa Bay Times reports Heritage Property and Casualty Insurance Co. donated $110,000 to Gov. Rick Scott's re-election campaign 2 months ago. Heritage is now set to $52 million to take 60,000 policies from the state-run Citizens Property Insurance Corp. Scott's office claims that the campaign contributions have nothing to do with Citizens decisions to sell policies to Heritage.

Scott's office said the governor played no role in the $52 million deal at Citizens, and campaign contributions were not a factor. "We expect (the board) to approve or disapprove of this risk transfer based solely on its merits," said Melissa Sellers, a spokeswoman for Scott. "Anything short of that would harm Citizens policyholders and Florida residents who back Citizens policies."

Apparently, even Republican state Rep. Frank Artiles isn't buying the spin.

"Citizens' board continues to fall prey to Tallahassee lobbyists who cook up these get rich funding schemes," said Rep. Frank Artiles, R-Miami.

Scott previously tried to kill Citizens. The Gainesville Sun reported that Scott proposal was too radical for private insurers.

The industry lobbyists protested that Florida carriers could not absorb all of Citizens' business, records show. The gap would force many Florida property owners to turn to the unregulated surplus lines market, where rates are unchecked and policies are not backed by a state guarantee fund.

A lobbyist who attended the meeting advised others by email that Gov. Scott knew about the gap, but was not bothered.

"He doesn't seem to care whether they are insured in the voluntary market or surplus lines," the lobbyist wrote.

Citizens is far from perfects. Citizen executives have used public money to pay for lavish expenses. Former Citizens executive R. Paul Hulsebusch accepted a motorcycle from Quantum Claim Service. To say Citizens is dysfunctional would be an understatement. Scott selling policies for campaign contributions doesn't help matters.