Citizens Approves Emergency Wind Mitigation Credit Accuracy Validation Plan
Oct 23, 2009
At its meeting this morning, October 23, 2009, Citizens Property Insurance Corporation’s (“Citizens”) Board of Governors approved an emergency plan to validate the accuracy of more than $700 million in policyholder wind mitigation credits through physical inspection. The results of the plan will determine whether the plan will be expanded to all 400,000 Citizens policyholders currently receiving the credits.
A Citizens press release on the inspection is reprinted below.
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Citizens Property Insurance Corporation Takes the Lead in Verifying Wind Mitigation Credits
JACKSONVILLE, FLA. – Citizens Property Insurance Corporation’s Board of Governors today approved an emergency plan to take swift action to validate the accuracy of the more than $700 million in wind mitigation credits provided to its policyholders. As a government entity, Citizens has a fiscal responsibility to all Floridians to ensure that the premiums it charges are correct and reflect accurate rating characteristics for each covered property.
Citizens will undertake the physical inspection of a cross-section of in-force personal and commercial residential policies. Results will be continually analyzed to determine whether or not the program should be expanded to include inspection of all 400,000 policyholders currently receiving mitigation credits.
Citizens’ public purpose is to provide property insurance protection to Floridians who cannot find affordable coverage in the private market. “In providing that coverage,” said Scott Wallace, Citizens’ President, “Citizens has an obligation to ensure that policies are underwritten and rated based upon accurate information. This Inspection and Outreach Program is designed to meet that obligation.”
“This is one of the most important initiatives that Citizens has ever undertaken, which will benefit both Citizens and its policyholders.” said Paul Palumbo, Citizens’ Senior Vice President of Underwriting, “Citizens will benefit by ensuring that it has accurate information on the risks it covers. Policyholders will benefit because they will receive validated information on the storm worthiness of their home.”
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