Citizens Actuarial and Underwriting Committee Meeting Report: April 10

Citizens Property Insurance Corporation (“Citizens”) held an Actuarial and Underwriting Committee (“Committee”) meeting on Thursday, April 10, 2008. The discussion included a proposed 30-day waiting period for personal residential policy applications, rating algorithms, and updates on Citizens’ Consumer Services Department. To view the complete meeting agenda, click here.

The meeting was called to order by Chairman Richard DeChene, with Committee members Jeffrey Rafferty, Fred Strauss, John Kucera and Amy Padgett in attendance. Also in attendance were Kimberly Abate, Steve Bitar and Brian Donovan from Citizens.

Ms. Abate gave a report on the proposed 30-day waiting period Rule for personal residential risks. To view a summary of the Rule, click here.

In September, 2008, Citizens will release its new wind-only products on the Electronic Policy Administration System “ePAS” that is currently used for other multi-peril policies.

The goal of the proposed 30-day waiting period Rule planned for the newly-revised wind-only product is to deter those applicants who have been previously uninsured for 45 days prior to application, or those who cannot provide proof of prior coverage, from obtaining coverage in anticipation of a specific wind event. The Rule is not expected to affect applicants seeking to insure a new purchase, or applicants who recently have been recently non-renewed by another carrier.

The Rule also will be placed into effect concurrently for multi-peril policies in an effort to maintain consistency in Citizens’ products.

The Committee approved the Rule for final adoption by the Board.

Mr. Bitar gave an update on Citizens’ Consumer Services Department (“Department”). The Department currently is working on upcoming communication efforts regarding Citizens’ policy and procedure changes, as well as web site upgrades. To view the Department’s 2008 Policyholder Communications Plan, click here.

Mr. Donovan updated the Committee on Citizens’ rating algorithm structure. The Actuarial Services Department has the software needed for the algorithm restructuring and currently is analyzing data from personal multi-peril lines policies for introduction into use by the new software within a few weeks. However, no rating changes can go into effect until the current Citizens rate freeze is lifted.

The meeting was then adjourned.

 

Should you have any questions or comments, please do not hesitate to contact this office.