Effective July 1, 2021, one of Citizens’ new-business eligibility rules will be updated to comply with legislative changes made by Senate Bill 76. For any Personal Lines new-business risk to be eligible for Citizens coverage, the premium for coverage from an authorized insurer must be more than 20% greater than the premium for comparable coverage from Citizens. The prior rule’s threshold was 15%.

Rule 200

Rule 200 in our manuals will be updated as highlighted:

Figure 1: Rule 200 of updated manuals

Any customers applying for new coverage with Citizens must meet no-offer-of-coverage or the 20% rule.

If an offer is available from an authorized insurer, upload documentation with the application verifying their premium is more than 20% higher than the premium for comparable coverage with Citizens.

Notes

• Effective July 1, the Property Insurance Clearinghouse will determine a risk’s eligibility under the 20% rule.
• Update: Effective July 1, PolicyCenter® will be updated to reflect the 20% rule on applications.
• The Required Documents section of PolicyCenter soon will be updated to reference the 20% rule.
• The website and brochures will be updated as soon as possible.

Resources

Log in to the Agents site to:

• Select FAQs on the menu at the top of each page. Enter 20% in the Search field.
• Review Personal Lines Underwriting Guidelines, which will be updated soon. Select Personal > PR-M or PR-W, and select the applicable policy type.