New Law Makes Citizens Adjustments
House Bill 931 has been signed into law, becoming Chapter Law 2016-229. The new law makes several changes affecting Citizens Property Insurance Corporation. Among the key changes, the following take effect July 1, 2016:
- Citizens may appoint as agents only those agents who have and continuously maintain at least one appointment with an insurer actually writing or renewing the types of policies offered by Citizens.
- Citizens may use the public hurricane loss projection model in conjunction with private models approved by the Florida Commission on Hurricane Loss Projection Methodology.
- Agents obtaining Citizens data for depopulation purpose cannot use the information for direct solicitation of policyholders.
The depopulation program also is subject to additional standards beginning January 1, 2017:
- Citizens will be required to publish a depopulation schedule. The depopulation program must be designed to maximize policyholder options and encourage increased participation.
- Assuming insurers will be required to give Citizens a description of coverage and estimated premium for each policy to be assumed.
- Citizens will be required to notify policyholders and agents of all takeout offers.