Published: Oct 22, 2010 9:02 PM EDT
Updated: Oct 22, 2010 6:02 PM EDT

TALLAHASSEE, Fla. (AP) - A class-action lawsuit contends that Citizens Property Insurance Corp. improperly awarded dozens of no-bid contracts worth more than $49 million.

The lawsuit filed Thursday in Tallahassee seeks unspecified damages for the 1.2 million Citizens policyholders. The attorney who filed the complaint says the alleged mismanagement costs policyholders in higher rates.

Citizens is supposed to take competitive bids for all contracts above $25,000, except in emergencies or when there is one vendor. The lawsuit says 33 contracts since 2004 have violated those rules.

A Citizens statement said all 33 contracts in question were properly awarded.

Florida's auditor general in 2006 also raised questions about Citizens' contracting process.