Florida Residual Markets

Question 1

CPIC

Answer 1

Citizens Property Insurance Corporation

applicant & producer must certify they were unable to obtain or not receive an offer from an authorized carrier that is less than 15% higher than Citizens

*must go to the admitted market first

Question 2

CPIC “take-out offer”

Answer 2

a depopulation program where CPIC may place a policy with an authorized carrier w/60 day notice

Question 3

CPIC “On-site Keep-Out Program”

Answer 3

another depopulation program where the authorized insurer underwrites the policy prior to CPIC underwriting with the following conditions:

1. Must maintain original effective date/ binding date
2. Carrier cannot cancel within one year unless insured was not eligible under plan at inception

Question 4

Governed by “Consumer Choice” Statute

Answer 4

Insured can maintain their agent of choice in both take-out and keep-out offer

Question 5

CPIC covers which policies? And what are NOT covered?

Answer 5

COVERED - HO 3,4,6, 8 & DP 1 and 3

NOT COVERED - HO2 7 DP3

Question 6

CPIC definition of insurable

Answer 6

1) Building under construction *owner to occupy

2) Replacement cost contents on HO forms

Question 7

CPIC definition of iunnsurable

Answer 7

vacant or unoccupied properties - property in disrepair -over 50 years unless updated (wiring,heating, roof) - Condemned - built over water - excessive or unusual liability exposure - doityourself constructions

Question 8

CPIC basic underwriting

Answer 8

• 4 point inspection (electrical, plumbing, roof, air/heat)
• no coverage for animal liability, off premisses theft
• no endorsements for scheduled personal property, special computer coverage, home day care, personal injury, backup of water
• deductible: 2% Hurricane - $1,000 all other perils

Question 9

Commercial Guidelines

Answer 9

Coverage provided for condo assoc. apt bldg and common elements of HO Assc

Not eligilbe: hotels, motels, holidae-innnn, room/board house, vacant properties

Question 10

CPIC Wind Guidelines

Answer 10

For AREAS deemed by state to be especially susceptible to windstorm damage

only 2 perils: wind & hail - all buildings are eligible and contents

Question 11

Property Insurance Clearinghouse

Answer 11

Effective 2014, help insureds find coverage in the private market. new applications for HO3 policies will be entered into Clearinghouse before a Citizens policy can be purchased, hopefully reducing the overall loss exposure and risk of a hurricane assessment for all Floridians