OIR Approves Citizens’ 1.4% Emergency Assessment Fee

The Florida Office of Insurance Regulation (“OIR”) has approved an emergency assessment fee of 1.4 percent for all new and renewal Citizens Property Insurance Corporation (“Citizens”) surplus lines policies with an effective date of December 15, 2008. The assessment period will continue until further notice.

A copy of the Florida Surplus Lines Service Office bulletin is reprinted below.

Should you have any comments or questions, please do not hesitate to contact Colodny Fass.

FSLSO Bulletin 2008-01: Citizens Property Insurance Emergency Assessment

The purpose of this bulletin is to inform you that as approved by the Office of Insurance Regulation (OIR) by Order (No.: 87822-06) an emergency assessment fee of 1.4% levied by Citizens Property Insurance Corporation (Citizens) will be applicable on all new and renewal surplus lines policies and any subsequent endorsements to those policies with an effective date on or after December 15, 2008. The assessment period will continue until further notice.

While agents will not need to make any changes in regards to the FSLSO SLIP, FSLSO Agent and FTP submission software, internal changes to agency policy issuance and accounting software may be necessary.

The emergency assessment will be calculated as a percentage of the transaction’s premium, as defined by Section 626.932(6) Florida Statutes, (excluding the premium receipts tax, the FSLSO service fee, the Florida Hurricane Catastrophe Fund Assessment, and the $2.00/$4.00 Emergency Management Preparedness and Assistance surcharge) and will be handled in a manner similar to the collection and payment of the premium receipts tax. The major differences being the percentage is the assessment amount, the applicable coverage codes (see coverage codes below) and the mailing address for payment. The emergency assessment is refundable on a proportional basis for return premium endorsements and cancellations.

The Florida Surplus Lines Service Office will collect the assessment fee by generating an invoice specific to the Citizens emergency assessment that will be sent along with the premium receipts tax invoice on a quarterly basis.

Checks for the emergency assessment amount should be made payable to the Citizens Property Insurance Corporation and mailed to Citizens Property Insurance Corporation, P.O. Box 850001, Orlando, FL 32885-0286.

The following surplus lines coverages and their specific codes have been identified as subject to the 1.4% Citizens assessment:

Applicable Coverage Codes:

1000 – Commercial Property
1001 – Builders Risk
1002 – Business Income
1003 – Apartments (Commercial)
1005 – Commercial Package
1006 – Condominium (Commercial)
1009 – Earthquake
1010 – Flood
1012 – Mortgagee Impairment
1013 – Windstorm and/or Hail
1014 – Mold Coverage (Commercial)
1016 – Excess Flood Commercial)
2000 – Homeowners – HO-1
2001 – Homeowners – HO-2
2002 – Homeowners – HO-3
2003 – Tenant Homeowners- HO-4
2004 – Homeowners – HO-5
2005 – Condo Unit-Owners
2006 – Homeowners – HO-8
2007 – Dwelling Builders Risk
2008 – Dwelling Flood
2009 – Dwelling Property
2010 – Farm Owners Multi-Peril
2011 – Mobile Homeowners
2012 – Windstorm
2013 – Mold Coverage (Residential)
2015 – Excess Flood (Residential)

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