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Is Citizens a good corporate citizen? Report prompts inquiry

Mon Dec 3rd, 2012 on     Homeowners Insurance,    

Citizens Property Insurance Corp. is currently under investigation after closing its Office of Corporate Integrity. The investigation was ordered by Florida Gov. Rick Scott after the property insurance company hurriedly shut its internal watchdog’s doors following the compilation of a 73-page report indicating extensive misconduct within the corporation.

According to one Florida newspaper reporting on the incident, allegations against the state-owned insurance provider include that their chief administration officer, employed by the company several years, was not licensed to practice law in the state. However, instead of simply terminating her employment, company leadership allowed her to resign and continued to pay salary and benefits for four months, according to the report in question.

Additional allegations of employee misconduct include that a female employee on a corporate outing danced braless on a tabletop. She received a warning for her behavior, while another female employee discovered to be promoting a line of female sex toys on company time was fired.

The discrepancies in consequences in these cases and others suggest favoritism at the company, and the firing of every member of the Office of Corporate Integrity — after the report was published — has raised concerns of retaliation. So much so, in fact, that the governor has asked the state’s chief inspector general to investigate and to make an independent determination as to whether the firings were retaliatory.

Citizens’ president has requested a special hearing in the matter, saying in a prepared statement that the company welcomes the investigation. He noted that it is Citizens’ full intention to operate as a company with complete integrity.

Source: Insurance News Net, “Fla. Gov. Calls For Probe Of Insurer,” United Press International, Nov. 21, 2012

Our firm works with consumers in Florida who believe their claims have been delayed or denied wrongfully by companies like Citizens. You can learn more about our Miami-based practice at the insurance coverage disputes page of our website.

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