Citizens Reminder: Policy Assumption Dates and OIR Deadlines

Citizens Property Insurance Corporation(“Citizens”) is reminding insurers and agents of the Florida Office of Insurance Regulation (“OIR”) deadlines and requirements for pending assumption dates.  In order to participate in the assumption process, all required material must be submitted to the OIR per the following schedule:

Assumption Date———OIR Deadline  

January 15th, 2008———November 5, 2007 (deadline considers Veteran’s Day and Thanksgiving Holidays)
February 12th, 2008———December 3, 2007 (deadline considers Christmas Holiday)
March 11th, 2008———January 7, 2007 (deadline considers Christmas Holiday)

There have been significant changes in the process due to the recent legislation (HB1A /SB2498). Thus, before a policy can be selected for assumption the following items must happen in sequence:

1. Agent of record must give permission.
2. Consumer is mailed an opt-out letter 30 days before assumption and given the option to not participate (sample of OIR-approved letter attached).
3. Once assumed, the insured is sent notice and allowed to stay with Citizens if he or she chooses (see attached sample notice).

The insured is given the option to not be assumed before the policy is ever selected.  In case the opt-out isn’t processed in time, or the insured changes his or her mind, the insured may choose to remain with Citizens (if their agent makes the request in a timely manner). 

Once an assumption occurs, the agent of record will be emailed a list of successfully-assumed policies, and an assumption notice and non-renewal will be sent to the agent, insured, and lien holder.

Once the Citizens policy has expired and the assuming carrier issues a replacement policy, there are eligibility requirements to return to Citizens (15% premium difference, etc.).

Citizens urges a review of its 2008 Calendar in order to become familiar with these deadlines and requirements.  Click here to review the calendar.

For your review, a sample notice of assumption and non-renewal is attached, as well as a “Frequently Asked Questions” document detailing answers to takeout questions for agents.

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