Citizens Promotes Clearinghouse
Citizens Property Insurance Corporation is seeking to discuss its anticipated new clearinghouse with interested insurers. The clearinghouse concept, adopted by the 2013 Florida legislature, will facilitate offers of coverage from admitted market insurers for new and renewal Citizens business. A participating insurer will provide its underwriting criteria to the program to enable the clearinghouse to identify policies that the insurer might be willing to write. When a policy presents a match, the insurer will have an opportunity to submit a quote. If an applicant for a new Citizens policy receives a quote within 115% of the Citizens rate, the applicant will be ineligible for coverage in Citizens. If the only quote(s) provided are more than 115% of Citizens’ rate, the applicant will have the choice whether the accept the admitted market quote or enter Citizens. Of course, applicants receiving no quotes will be written in Citizens.
The process will be similar for renewal policies, except that existing policyholders will be ineligible for continuing coverage in Citizens if they receive one or more quotes at or below the Citizens rate. Existing policyholders receiving quotes above their Citizens rates remain eligible for Citizens if they so choose.
Citizens is welcoming feedback, questions and suggestions from insurers potentially interested in participating.