Florida Citizens Property Insurance Board to Consider $45 Million Clearinghouse Software Solutions Contract at Meeting Tomorrow
Aug 21, 2013
The Florida Citizens Property Insurance Corporation (“Citizens”) Board of Governors (“Board”) will meet tomorrow, August 22, 2013, to consider awarding a potential $45 million contract to BOLT Solutions for the provision of technology services to support the new Consumer Choice Clearinghouse (“Clearinghouse”) pursuant to CS/SB 1770, enacted this year.
To participate in the 3:00 p.m. (ET) meeting, dial (888) 942-8686 and enter participant code 5743735657#.
Notably, tomorrow’s meeting will mark Board member Chris Gardner’s first as Chair after being appointed last week by Florida Chief Financial Officer Jeff Atwater to replace previous Chair Carlos Lacasa, whose Board term expired in July.
In adherence to Citizens’ competitive solicitation process, BOLT Solutions was recommended to the Board as the best of six vendor responses. The company’s stated ability to implement Clearinghouse services by January 1, 2014 was among the factors considered in its selection. The anticipated contract term is a five-year base, with one optional five-year renewal.
The Clearinghouse is a technological platform intended to provide enforcement of Citizens’ eligibility criteria under the new law by ensuring there are no private market alternatives before a new or renewal policy is placed with the state-run insurer.
Effective January 1, 2014, all new Citizens applications and renewal Citizens personal residential property policies must be submitted to the Clearinghouse to determine whether they can be written or renewed by a private insurer within premium eligibility restrictions. Under Florida law, applicants are ineligible for Citizens coverage if an offer of comparable private market coverage within 15 percent of Citizens’ rate is presented.
While CS/SB 1770 excludes commercial residential policies from the Clearinghouse, it requires Citizens to develop procedures to divert ineligible commercial residential policies. A report from Citizens on its proposed approach to commercial residential policies is due January 1.
Since the Clearinghouse legislation became effective, Citizens officials conducted 31 meetings with various insurers about the new program. According to Citizens’ report, many misconceptions about the Clearinghouse were clarified, while feedback indicated a high interest in participation. In addition to meeting with insurers, Citizens officials also met with agent associations, as well as high-volume Citizens agents.
To view tomorrow’s Board meeting materials, click on the hyperlinks below:
A Colodny Fass& Webb representative will attend the meeting and provide a report.
Should you have any questions or comments, please contact Colodny Fass& Webb.
To unsubscribe from this newsletter, please send an email to Brooke Ellis at firstname.lastname@example.org.