Task Force On Citizens Property Insurance Conference Call Recap

A conference call of the Task Force on Citizens Property Insurance Claims Handling and Resolution (“Task Force”) took place on August 1, 2007.

To view the conference call agenda and accompanying documents, click here.

Established in January 2007, the Task Force makes recommendations to Florida’s legislative and executive branches relating to the handling, service and resolution of claims by Citizens Property Insurance Corporation (“Citizens”).  Task Force members include Senator Mike Fasano (R) and Representative Julio Robaina (R), among others.

The Task Force reported on the status of Citizens’ 2004/2005 claims.  As of June 18, 2007, a total of 3,330 claims were open.  As of July 30, 2007, 978 of those claims had been closed, with 2,352 still pending.

Next, the Task Force provided an update on certain recommendations made in its First Report to the Legislature, and the status of implementation by Citizens with regard to independent adjusters and insurance agents.

Independent Adjusters

• Utilize Computer Based Training (“CBT”) to certify all adjusters prior to hurricane season and/or before they arrive in Florida.

o Web-based training has begun and the first of five classes is available online at the Citizens Adjuster webpage.

o A comprehensive training program is set to go live within the next six (6) weeks.

• Establish a First Response Team of out-of-state independent adjusters who are highly trained in all of the identified areas prior to hurricane season.

o Citizens is reviewing how to best develop, implement and integrate this into the claims business model.

• Enable First Responders to mentor other contracted independent adjusters in the field.
o Citizens’ Team Leads, each with a minimum of five (5) years of experience, are acting as mentors to field adjusters.

• Establish a Second Response Team to begin training and be certified prior to arriving in Florida.

o Independent adjustment firms are required to certify that their adjusters have completed the Citizens training program.

o A system is being developed whereby records will be accessible at the individual adjuster level.

• Develop consistent claims forms and reporting processes.

o A group of standardized letters and forms for use by all claims employees and independent adjustors has been developed.

o A single adjusting platform has been implemented.

o A consistent claims reporting and tracking system has been established.

• Require all adjusters to download claims information and pictures directly to Citizens on a daily basis to eliminate lost records and repeat inspections.

o Policyholders, agents, adjusters and other related parties have access to directly submit information in an electronic format.

• Develop criteria for assigning authority to field adjustors to settle claims to relieve in-house bottle neck.

o Allowing independent adjusters access to Citizens’ checkbook creates significant exposure and financial risk; therefore, Citizens will continue to improve its internal claims settlement processes to enhance its payment cycle times for its policyholders.

Insurance Agents

• Utilize CBT to certify that Citizens’ appointed agents understand the unique aspects of Citizens personal lines products and wind-only policies.

o Citizens began developing an agent CBT program in 2006 that will be ready for deployment in the third or fourth quarter of 2007.

• Notify Agents when their clients submit claims so they may assist the policyholders with the claims process.

o This item was left open to be discussed at the next meeting.

• Require agents to contact policyholders before the renewal date of their policies and explain options such as mitigation discounts, hurricane deductibles and other issues related to their policies.

o This item was left open to be discussed at the next meeting because Senator Fasano feels strongly that at a minimum, agents should be contacting policyholders once a year.

The next Task Force meeting is scheduled for Friday, October 5, 2007.  It will be held at the Senate Office Building, Room 401 or the Cabinet Room (Lower Level), from 9am to 4pm.

Should you have any comments or questions regarding this newsletter, please feel free to contact this office.