Florida Office of Insurance Regulation Approves New Citizens Rules, Endorsements for Residences Held in Trust

Citizens Property Insurance Corporation (“Citizens”) advised today, October 16, 2017, that the Florida Office of Insurance Regulation has approved new rules and endorsements filed by Citizens for residences held in trust.

These materials will apply to personal residential new business submissions with effective dates on or after December 1, 2017.

• The rules and endorsements apply to all personal residential policy forms except tenant content policy types.
• There is no rate impact.

Residence Held in Trust
Under the new rules:

• A homeowner, dwelling or a condominium unit policy can be issued when legal title to the residence is held in trust.
• Eligible policy types can be endorsed to insure a trustee and, if applicable, a trust.
• The trust, by itself, cannot be the named insured. The name(s) of the trustee(s) must precede the name of the trust as the named insured.
• Trustees that are corporations, partnerships or limited liability companies (LLCs) may be eligible for dwelling policies without liability coverage.

Trust Endorsements
New endorsements provide coverage for trusts and trustees.  The endorsement form numbers vary by line of business:

• Homeowners: CIT 06 15 12 17 
• Homeowners Wind-Only: CIT W06 15 12 17 
• Dwelling: CIT 06 16 12 17 
• Dwelling Wind-Only: CIT W06 16 12 17 

The new endorsements:

• Amend the definition of insured to include a trustee and, if applicable, the trust
• Specify coverages that only are applicable to the trustee and trust
• Limit the trustee’s coverage to when they are acting only in the capacity of managing the trust with respect to the insured property
• Amend other policy provisions to clarify the insuring conditions of property held under a trust

Should you have any questions or comments, please contact Colodny Fass.

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