Limited Apportionment Company Status Filing Deadline is Tomorrow, March 31, 2012
Mar 30, 2012
Insurers seeking limited apportionment company (“LAC”) status for 2012 must petition the Florida Office of Insurance Regulation (“OIR”) within the first 90 days of 2012, meaning by tomorrow, March 31, 2012. Applications received after this deadline will not be considered. Companies that had LAC status in 2011 must renew it this year.
To view the 2012 LAC application, click here. This application form should be used to apply for LAC status, and should be sent by certified mail, return receipt requested, to: Linda McWilliams; Office of Insurance Regulation; 200 East Gaines Street; Tallahassee, Florida 32399-0300. Early filing is recommended.
LACs are those that have surplus as regards policyholders of $25 million or less, and write 25 percent or more of their total countrywide property insurance premium in Florida.
The main benefit of LAC status is the ability to pay any regular assessments that may be levied by Citizens Property Insurance Corporation (“Citizens”) for its coastal (formerly high-risk) account on a monthly basis, as such amounts are recouped from insureds, provided that the full amount of the regular assessment is paid within 12 months after being levied by Citizens. Companies that do not have LAC status must pay the full amount of any Citizens regular assessments within 30 days after they are levied.
LACs also are eligible for a deferment of a regular assessment levied by Citizens, but only if the OIR determines that any such regular assessment will result in an impairment of the LAC’s surplus.
It should be noted that any or all elements or benefits of LAC status are subject to legislative change.
In view of the need to file the LAC application prior to the expiration of the applicable deadline, companies should carefully evaluate their circumstances and apply for LAC status in a timely manner, if appropriate.
Should you have any questions or concerns regarding LAC status, please do not hesitate to contact Colodny Fass.
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