Florida Office of Insurance Regulation Announces Changes to the Citizens Depopulation Process
Jun 25, 2008
On June 23, 2008, the Florida Office of Insurance Regulation announced a series of new requirements for companies participating in the depopulation of Citizens Property Insurance Company (“Citizens”).Â
As part of the solicitation process, when contacting the agent of record regarding permission to participate in the depopulation process, companies are now required to do the following:
- Utilize email and at least one other method for contact (i.e., call, fax or regular mail)
- Send out a direct solicitation to the agent of record and copy the agency principal
- Provide all agents with a minimum of 14 days to review the solicitation.Â This is to allow agents adequate time to research the company and make an informed decision
- Provide a copy of the appointment contract.Â The takeout company may opt to provide the agent with a link to its Web site that contains the required information
- Provide a chart identifying any differences in coverage from Citizens, which will help both the agent and the policyholder in making an informed decision
- Provide a list of policies specific to the agent that the takeout company would like to assume
- Provide a contact number of qualified staff to answer agents’ questions
- Provide an overview of the takeout companyâ€™s strategy for handling claims (catastrophe and non-catastrophe)
These requirements are effectively immediately and apply to both Citizensâ€™ personal lines and commercial residential depopulation programs.
Should you have any questions or require further information concerning the foregoing, please do not hesitate to contact Colodny Fass.
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