Florida Legislature’s Joint Administrative Procedures Committee Reviews Citizens Property Insurance HO-8 Policy Implementation

Feb 19, 2013


The Florida Legislature’s Joint Administrative Procedures Committee (“Committee”) met yesterday, February 18, 2013. 

Committee members heard a presentation by the Florida Office of Insurance Regulation (“OIR”) on oversight responsibilities for Citizens Property Insurance Corporation (“Citizens”) and the interpretation of requirements of Section 627.351(6)(c), which relates to Citizens’ Plan of Operation.

Additionally, Citizens’ representatives also made a presentation on the implementation of the requirements of Section 627.351(6)(c).

Rich Koon from the OIR provided the Committee with an overview of Citizens’ HO-8 filing, which is required by 627.351(6)(c).

In response to a question from Committee Chairman Mike Fasano, Mr. Koon related that some concern had been expressed by Citizens relating to policyholders’ understanding, or lack thereof, of the differences in coverage provided by HO-3 and HO-8 policies.  Specifically, HO-8 policies cover far fewer perils than HO-3 policies.

Chairman Fasano pointed out that Citizens’ HO-8 policy is restricted to homes that are over 50 years old and worth less than $200,000, but that the statute does not authorize such restrictions.  He suggested that for the OIR to allow Citizens to make such exclusions from HO-8 policies was contrary to the law.

State Representative Doug Broxson replied that he believes the OIR and Citizens have appropriately implemented the law through the HO-8 policy in question.

Citizens’ Director of Legislative and External Affairs Christine Asburn spoke on behalf of the State-run insurer. Chairman Fasano asked her whether Citizens was ever hesitant to offer the HO-8 policy, to which Mrs. Ashburn replied it was not.

Chairman Fasano then asked if Citizens has complied with the law in enacting the HO-8 policy. Mrs. Ashburn replied that Citizens believes it has accurately implemented the law through the HO-8 policy.

State Representative Dave Kerner asked why Citizens has implemented the HO-8 policy with the underwriting restrictions discussed above.  Mrs Ashburn replied that the form of the HO-8 implemented by Citizens is an industry standard.

To view the meeting materials, click here.



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