Citizens is implementing a new document exception process that applies to new-business policies effective December 6, 2023, and assumed June 2023 and later.

This new process applies to such customers reapplying to Citizens after an assumption due to the takeout company’s offer being higher than the estimated premium presented at time of assumption, making it more than 20% higher than Citizens’ current rates.

Eligibility Requirements

Eligibility requirements have not changed. The Declarations page issued by the takeout company should be used to support marketing to other carriers and to determine the 20% eligibility rule with Citizens.

• Agents should use a comparative rater or a quote from the portal(s) of their appointed carrier(s) to determine if the customer has an opportunity to be placed with another company in the private market.
• Agents must complete a quick quote in PolicyCenter® to compare with the takeout company and private-market offers.
• If an agent determines the risk is eligible for Citizens' coverage under the 20% rule, the risk may be submitted to Citizens as new business.
• A final determination of the 20% rule will be based on the takeout company Declarations page premium and Citizens’ new-business application premium.
• Pre-Qualification Question should be answered as Option B.
• The risk must meet all of Citizens’ underwriting requirements, including required flood insurance when applicable.
• The effective date of the new Citizens policy cannot be before the current policy’s expiration.

New Required Document Exception

If the customer is eligible to return to Citizens, agents can submit a Personal Lines: Document Exception Form for new inspections to waive the requirement for the following:

• Photographs
• 4-point inspection
• Roof condition documentation (This will not satisfy the requirement to prove roof replacement; if proving that the roof was replaced, the roof permit or roof replacement documentation will be required.)
• Uniform Mitigation Verification Inspection Form (OIR-B1-1802): To apply mitigation inspection credits to a policy, you will need to have an OIR-B1-1802 form. The exception form allows you to use an older inspection if needed so that the policyholder does not need to order a new inspection.

On the exception form, include the assumed Citizens policy number where Citizens’ underwriters would locate the waived inspection(s).

• For external inspections, enter Waive when PolicyCenter prompts you on the Dwelling Construction screen for the inspector/inspection company information. Use the current date for the inspection date.
• Upload and link the completed form in the Required Document field(s) in PolicyCenter when declaring an exemption for the document requirement.

Notes

• This exception will only be allowed for new policies effective on the expiration date of the assumed policy or up to 45 days following the expiration date of the assumed policy.
• Underwriting retains the right to reject documentation that does not reasonably support the representations made in the application.
• If the insured is requesting sinkhole loss coverage for the first time, all underwriting requirements related to the acquisition of sinkhole loss coverage will still be required, including a recent 4-point inspection.
• If a roof has been updated or replaced since the old forms were completed, a new form will be required and no exception can be made.

Resources

For more details, log in to the Agents site and select Training > Personal Job Aids to access:

• Returning to Citizens After an Assumption
• Personal Lines: Document Exception Form
• Creating a Quick Quote
• New Business Submission Guide
• Uploading and Linking Documents
• PR-M and PR-W required document guides. Select the applicable guide from the right-side column in the Learn More section.