Limited Apportionment Company Petition Available
Citizens Property Insurance Corporation has released the form by which insurers may seek limited apportionment company status for 2011. In cooperation with the Office of Insurance Regulation, Citizens has informed insurers they must submit their requests to the OIR on or before March 31, 2011. To qualify as a limited apportionment company, an insurer must have $25 million or less in surplus and write at least 25% of its countrywide property insurance premiums in Florida.
Limited apportionment status allows an insurer to remit certain Citizens Property Insurance Corporation assessments in monthly installments rather than in a single initial payment. The Florida Hurricane Catastrophe Fund also offers advances to limited apportionment companies. Limited apportionment companies also are statutorily allowed to purchase a special $10 million layer of coverage from the FHCF with a relatively low attachment point.
Insurers interested in seeking limited apportionment status shoud review the instructions accompanying Citizens’ notice and prepare to timely file the documents with the OIR.