Citizens To Apply 105-Day Rule to Non-Renewals

Colodny Fass has been advised by Citizens Property Insurance Corporation (“Citizens”) that Citizens will no longer apply to depopulations the new law set forth in Senate Bill 2860 stipulating that at least 180 days prior notice is required to non-renew a policyholder who has been insured with the same insurer for five years or more.  SB 2860 was enacted during the 2008 Regular Legislative Session.

In essence, this 180-day non-renewal rule meant that takeout companies could not assume any policies (regardless of how long they were in Citizens) that were due to expire within that 180-day period, thereby severely restricting the number of policies subject to assumption.

In the future, starting with the August 2008 takeouts, Citizens will not apply this 180-day notice of non-renewal provision in setting the blackout period for policies that may not be assumed.

Rather, it will apply the 105-day notice of non-renewal rule that generally applies under Florida law, with certain exceptions, in setting the blackout period for assumptions.

 

Should you have any questions or comments, please do not hesitate to contact this office.

 

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