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QUESTIONS & ANSWERS FOR POLICYHOLDERS REGARDING THE LIQUIDATION OF SOUTHERN FAMILY, ATLANTIC PREFERRED AND FLORIDA PREFERRED

FAQ’s - POE INSURER LIQUIDATION/CITIZENS TRANSITION COVERAGE

Questions & Answers Regarding the Liquidation of Southern Family Insurance Company, Atlantic Preferred Insurance Company, and Florida Preferred Property Insurance Company (the “Poe Insurers”)

Transition of Coverage to Citizens Property Insurance Corporation (“Citizens”)

SUMMARY

- “Poe Coverage,” your insurance coverage with the Poe Insurers, ends at 12:01 a.m. on July 1, 2006.

- Under your Poe Coverage, FIGA will handle losses occurring on or before 12:01 a.m. on July 1, 2006

-“Citizens Transition Coverage” automatically picks up coverage for an Eligible Policyholder beginning July 1, 2006, and ending on the date that coverage would have ended under the Poe policy.

- Citizens Transition Coverage uses the existing forms and premiums of the Poe Insurers.

-A policyholder eligible for Citizens Transition Coverage is not required to file an application and does not need to pay any premium already paid to the Poe Insurers.

- All Poe policyholders are eligible for Citizens Transition Coverage, except:

o A policyholder who has received an offer of coverage from an admitted carrier.
o A commercial lines policyholder, including condo associations, with an aggregate building limit of $25 million or greater.
o A policyholder who has obtained replacement coverage with another insurance company.
o A policyholder whose coverage was cancelled by a Poe Insurer for non-payment of premium or underwriting reasons, or at the policyholder’s request.
o Coverage written on a form that Citizens does not write, e.g., flood and personal umbrella.
-Policyholders ineligible for Citizens Transition Coverage may contact their agents to see if they qualify for “Citizens Regular Coverage” under Citizens regular forms and premiums.

-Over a twelve-month period, upon the expiration of Citizens Transition Coverage, policyholders must apply for Citizens Regular Coverage under Citizens regular forms and premiums.

-Policyholders should not pay renewal premiums to the Poe Insurers for renewal coverage that begins after June 30, 2006.

o For policyholders who have already paid their renewal premium to the Poe Insurers for renewals occurring July 1, 2006 or later, the Receiver has mailed refunds of such premiums to the policyholders, so that these moneys can be used to obtain regular coverage with another insurance company or with Citizens.

While Citizens coverage has been accepted by both FANNIE MAE and FREDDIE MAC, policyholders and agents are urged to seek coverage from insurers other than Citizens.


 

TABLE OF CONTENTS

CONTACT INFORMATION

MY INSURANCE AGENT

POLICY AND COVERAGE INFORMATION
Poe Coverage 
Citizens Coverage
Eligible Policyholders – Citizens Coverage
Other Insurance Companies
Policy Forms
Premium Payments
Premium Refunds
Commercial Coverage
Coverage Not Provided by Citizens 
Mortgage Lender Notices
Unrepaired Property
Legal Notice 

CLAIMS INFORMATION

AGENT INFORMATION
 
CONTACT INFORMATION:
1. Policy and Underwriting Related Inquiries

All inquiries relating to policy coverage, endorsements and cancellation of your Poe Coverage and Citizens Transition Coverage should be referred to your agent or the Citizens’ Tampa Service Center at 1-866-875-8877.

Citizens’ Tampa Service Center Hours of Operation are Monday - Friday from 8:00 A.M. - 5:00

P.M.

2. How do I contact the Receiver to get additional information regarding receivership processes, including additional information on liquidation?

Please go to the Receiver’s website at www.floridainsurancereceiver.org. You may contact the Receiver directly by using the “Contact Us” form on the website or by calling the consumer hotline at 1-800-882-3054 (toll-free).

3. New and Pending Loss Claim Inquiries – FOR LOSSES INCURRED PRIOR TO JULY 1, 2006

All inquiries relating to claims for losses incurred prior to July 1, 2006, should be submitted to the Florida Insurance Guaranty Association ("FIGA") per below:

Florida Insurance Guaranty Association P O Box 10366 Jacksonville, Florida 32247-0366

1-866-928-4310 (toll-free)

Hours of Operation are Monday - Friday from 8:00 A.M. - 8:00 P.M.

Additional information on FIGA is available on its website, www.figafacts.com.

4. New and Pending Loss Claim Inquiries – FOR LOSSES INCURRED ON AND AFTER JULY 1, 2006 for Citizens Transition Coverage only.

Inquiries relating to claims for losses incurred on and after July 1, 2006, should be submitted to Citizens Property Insurance Corporation (“Citizens”) per below:

1-866-875-8869 (toll-free)

Hours of Operation are Monday - Friday from 8:00 A.M. – 10:00 P.M., Saturday – Sunday 9:00

A.M. – 5:00 P.M.

MY INSURANCE AGENT
5. Will I have the same agent once Citizens becomes my new insurer?

As long as the agent is appointed with Citizens, the agent will not change. Most Poe independent agents are already appointed with Citizens.

Citizens has informed the Receiver that it will not be using Poe & Associates, Inc., for Citizens Transition Coverage and Citizens Regular Coverage. Poe and Associates, Inc., is an insurance agency affiliated with the Poe Insurers. Beginning July 1, Citizens will service these policyholders on its own behalf.

POLICY AND COVERAGE INFORMATION:
Poe Coverage

6. What is the current status of my insurance policy with my Poe Insurer? Do I still have insurance?

Your “Poe Coverage” which is your current policy with a Poe Insurer, will remain in force through 12:01 a.m. on July 1, 2006.

Your Poe Coverage may be cancelled earlier for non-payment of premium or underwriting reasons, or by the request of the policyholder.

7. Are any of the Poe Insurers writing new business?

No. The Poe Insurers are no longer writing new policies.

Citizens Coverage

8. Do I have Coverage with Citizens as of July 1, 2006?

Yes, if you are an Eligible Policyholder.

Citizens will provide two types of coverage – “Citizens Transition Coverage” and “Citizens Regular Coverage,” which are described below.

Almost all Poe policyholders are eligible for Transition Coverage with Citizens. See “Are all Poe Policyholders Eligible for Coverage with Citizens?”

9. What is Citizens Transition Coverage?

“Citizens Transition Coverage” is insurance with Citizens provided using the policy forms and premiums of your Poe Insurer. Citizens Transition Coverage starts on July 1, 2006 and ends when the original policy period of the Poe Insurer policy ends. For example, if your policy with a Poe Insurer would have expired on March 1, 2007, your Citizens Transition Coverage is in effect from July 1, 2006 through March 1, 2007.

10. What does a policyholder have to do to get Citizens Transition Coverage?

Nothing. If you are eligible, you do not need to submit an application for Citizens Transition Coverage. You also do not need to pay premium, unless you owe premium on your current policy with a Poe Insurer.

11. What do I do when my Citizens Transition Coverage is about to end?

Before your Citizens Transition Coverage expires you should contact your agent to seek replacement coverage with another insurance company or to obtain Regular Citizens Coverage (if eligible).

12. What is Citizens Regular Coverage?

Citizens Regular Coverage is a new policy with Citizens using its regular policy forms and premiums.

13. What steps must a policyholder take to get Citizens Regular Coverage?

Citizens Regular Coverage is NOT automatic. A policyholder must contact his or her agent to apply for Citizens Regular Coverage. An application is required, and the policyholder must pay new premium to Citizens. Citizens is working to make this process as easy as possible for policyholders and agents. Your agent has been provided with instructions on a streamlined application process.

14. If my Citizens Transition Coverage ends in July, will there be enough time for me to get Citizens Regular Coverage?

Yes. For policyholders whose Citizens Transition Coverage ends in July, Citizens has developed a quick process to make sure that policyholders do not have gaps in coverage. Details have been provided to your agent.

Eligible Policyholders – Citizens Coverage

15. Are all Poe Policyholders eligible for coverage with Citizens?

Almost, but not all are eligible for Citizens Transition Coverage.

All Poe Policyholders are eligible for Citizens Transition Coverage, except:

o A policyholder who has received an offer of coverage from an admitted carrier.
o A commercial lines policyholder, including condo associations, with an aggregate building limit of $25 million or greater.
o A policyholder who has obtained replacement coverage from another insurance company.
o A policyholder whose policy was cancelled by Poe Insurers for non-payment of premium or underwriting reasons, or at the policyholders’ request.
o Coverage written on a form that Citizens does not write, e.g., flood and personal umbrella.
Any applicant for Citizens Regular Coverage must meet Citizens’ regular eligibility requirements. Contact your agent for details.

Other Insurance Companies

16. Am I required to be insured with Citizens?

No. You may decline coverage with Citizens. But unless you decline coverage, you will be insured automatically if you are eligible for Citizens Transition Coverage.

17. Where can I try to find alternate insurance coverage?

You should contact your agent, or if you do not have an agent, contact the Florida Market Assistance Plan (“FMAP”) at www.fmap.org or (800) 524-9023 to see if FMAP can point you to an insurance agent that will write your policy.

18. What should I do if I want to replace my coverage now?

You may contact your insurance agent now for assistance in finding other coverage options. You can also contact the Florida Market Assistance Plan at www.fmap.org or (800) 524-9023 for additional information. For all eligible policyholders, coverage cannot be replaced with Citizens Regular Coverage until the end of the Citizens Transition Coverage.

Policy Forms

19. Will I receive new Citizens policy forms if I am eligible for Citizens Transition Coverage?

No. The Receiver has mailed a “Notice to Policyholders” with Citizens’ “Notice of Offer of Automatic Coverage” to policyholders as evidence of Citizens’ offer to provide coverage. While Citizens will not be issuing any other evidence of coverage, eligible policyholders may rely on the declaration pages and other policy forms from their coverage with the Poe Insurers for details of their Citizens Transition Coverage. Citizens will not be issuing a new policy to Citizens Transition Coverage policyholders.

20. Will I receive a new Citizens policy if I am eligible for Citizens Regular Coverage?

If you apply and your application is approved Citizens will mail out new policy forms for Citizens Regular Coverage.

Premium Payments

21. If I received a Poe Insurers notice of renewal coverage beginning July 1, 2006 or later, should I pay the bill?

No. Renewals for Poe Coverage effective on July 1, 2006 or later will not be honored. Citizens will provide Transition Coverage beginning July 1, 2006 through the expiration date listed on your Poe Coverage for eligible policyholders, but it is your responsibility to seek replacement coverage prior to the expiration of the Citizens Transition Coverage. See question 17 if you need assistance in obtaining replacement insurance coverage.

22. What should I do if I have already paid my bill for Poe Insurer coverage effective July 1, 2006 or later?

For policyholders who have already paid their renewal premium to the Poe Insurers for renewals occurring July 1, 2006 or later, the Receiver has mailed refunds of such premiums, so that these moneys can be used to obtain regular coverage with another insurance company or with Citizens. If the premium payment was received and deposited by the Poe Insurer, then the Receiver has refunded the premium directly to the policyholder. However, if the premium payment was received but not deposited, then the Receiver has returned the payment to the original sender. Any such payments received in the future will be handled by the Receiver in this manner.

23. When Citizens provides Citizens Transition Coverage, will my premiums go up or will I have to pay any other fees?

If you are eligible for Citizens Transition Coverage on July 1, 2006, your premium will remain the same until the expiration of your current policy, unless you request changes to your policy

terms or coverage. If you have paid the full amount of your premiums to the Poe Insurers, no additional fees are due for your Citizens Transition Coverage.

24. If I obtain Citizens Regular Coverage at the end of my Citizens Transition Coverage, will my premiums go up and if so, how much?

The premium for Citizens Regular Coverage will likely be higher than the premium you paid for your Poe Coverage. When you apply for your Citizens Regular Coverage, your agent will inform you about the premium that will be due.

25. I have Poe Coverage and opted to pay my annual premium in two installments. My second payment is due after July 1, 2006. To whom should I send the payment?

If you are eligible for Citizens Transition Coverage, after July 1, 2006 you should send your second Poe Coverage installment payment to Citizens Tampa Service Center at:

Citizens Property Insurance Corporation Citizens Transition Coverage PO Box 172969 Tampa, FL 33672-0969

26. I have Poe Coverage and opted to pay my annual premium in two installments. I have not been billed for the second installment, which is due after July 1, 2006. Will Citizens be sending me a bill for this installment?

If you are eligible for Citizens Transition Coverage, the second installment billing will come from Citizens Tampa Service Center and the invoice will advise you where to submit your premium.

Premium Refunds

27. If I am able to replace my coverage prior to the end of my Poe Coverage, will I receive a refund for the unearned premium?

Policyholders who cancel their Poe Coverage prior to July 1, 2006 are entitled to a pro-rata refund of the unused portion of their premiums from FIGA. Contact your agent or the Citizens Tampa Service Center (1-866-875-8877) to request cancellation. The unearned premium due will be calculated and then forwarded to FIGA for payment processing. FIGA will apply a $100 statutory deductible from the gross amount owed and will mail out the check. If your gross refund is less than $100, you will not currently receive a refund of your unearned premium. You may file a claim in the estate of the insurance company for the $100 deductible. The Receiver will send proof of claim forms and instructions for filing a claim.

28. If I am able to find replacement coverage for my Citizens Transition Coverage on or after July 1, 2006, will I receive a refund for the unearned premium?

Policyholders who cancel their Citizens Transition Coverage are entitled to a pro-rata refund of the unused portion of their premiums from FIGA. Contact your agent or the Citizens Tampa Service Center (1-866-875-8877) to request cancellation.

29. Am I entitled to any unearned premium from FIGA when my Poe Coverage cancels on July 1, 2006?

Policyholders who receive Citizens Transition Coverage will not receive unearned premium. Those amounts will be paid by FIGA directly to Citizens. For those policyholders who do not transition to Citizens, FIGA will pay unearned premium claims after the Receiver completes its processing of the policy records and sends the unearned premium record to FIGA. A $100 statutory deductible will be taken from the amount owed. FIGA will return your unearned premium as quickly as possible. You may file a claim in the estate of the insurance company for the $100 deductible. The Receiver will send proof of claim forms and instructions for filing a claim.

Commercial Coverage

30. I have a commercial lines policy with a Poe Insurer. Will my policy be automatically transitioned to Citizens?

It depends. A commercial policyholder, including condo associations, is eligible for Citizens Transition Coverage unless the aggregate building limit on your policy is $25 million or greater. For these large policies, your agent must apply for Citizens Regular Coverage as of July 1, 2006. You should immediately contact your agent to ensure that your commercial coverage is in place as of July 1.

Coverage Not Provided by Citizens

31. I have an umbrella liability policy in addition to my homeowners policy. Will my umbrella liability policy be automatically transitioned to Citizens along with my homeowners policy?

No. Citizens does not issue umbrella liability policies. You should immediately contact your agent to find replacement insurance coverage with another insurance company to avoid any lapse in coverage after June 30, 2006.

32. I have a flood policy with a Poe Insurer. Will my flood policy be automatically transitioned to Citizens?

No. Citizens does not issue flood policies. The Receiver has sold the flood book to Fidelity National Property and Casualty Insurance Company, another authorized insurance company. Independent agents and policyholders can contact Fidelity National Property and Casualty Insurance Company toll free at (800) 820-3242 or via facsimile at (800) 850-3299. Independent agents can also reach Fidelity National Property and Casualty Insurance Company by visiting their website at www.fidelitynationalflood.com or via e-mail at floodcustomerservice@fnf.com.

33. What if I have additional homeowner coverage on my Poe Homeowners policy that Citizens does not provide, e.g., a personal articles floater?

Citizens will provide the additional coverage for the Citizens Transition Coverage, but will not provide it for Citizens Regular Coverage. If you need additional coverage, your agent will have to find it through another insurance company.

Mortgage Lender Notices

34. I have received a notice from my mortgage lender stating that I need to get insurance coverage with another insurance company due to the Poe Insurers’ current financial rating, or the mortgage company will force place my coverage. What should I do?

Citizens coverage has been accepted by both FANNIE MAE and FREDDIE MAC and should be accepted by your mortgage lender. The Receiver has mailed a “Notice to Policyholders” with Citizens’ “Notice of Offer of Automatic Coverage”. Assuming you are an Eligible Policyholder, you should then send that notice to your mortgage company to verify that you have appropriate insurance coverage in force. If you are able to place your insurance with a company other than Citizens, you should provide evidence of that coverage to your mortgage company. If your mortgage lender does force place your coverage when in fact you had no lapse in insurance coverage, then your mortgage company should be required to reverse the forced placed coverage and refund your premium paid, if any. You should contact your mortgage company for further details. Visit www.citizensfla.com if you need a copy of the letter from FANNIE MAE and FREDDIE MAC certifying acceptance of Citizens coverage for hazard insurance.

Un-repaired Property

35. If my home is in need of repair resulting from a previously reported Poe claim, will Citizens provide Citizens Transition Coverage?

Citizens will provide Citizens Transition Coverage to the Eligible Policyholder, regardless of existing un-repaired damage, through the date that coverage would have ended under the policy with the Poe Insurers.

36. If my home is in need of repair resulting from a previously reported Poe claim, will Citizens provide Citizens Regular Coverage?

If you are otherwise eligible, Citizens will provide Citizens Regular Coverage for a home with prior damage. However, Citizens will not provide coverage for the damaged portion of the property. The policyholder will have a period of 90 days to show that a contract to repair the damages has been signed and then 90 more days to complete the repairs in order for coverage to continue.

Legal Notice

Citizens Transition Coverage is subject to the terms and conditions of the Receiver’s Plan of Liquidation and Transition (“Liquidation Plan”) ordered by the Court on June 2, 2006 in the liquidation of the Southern Family Insurance Company, Atlantic Preferred Insurance Company, and Florida Preferred Property Insurance Company.

CLAIMS INFORMATION:
37. Now that the Poe Insurers are in Liquidation, who will adjust claims?

In liquidation, the Florida Insurance Guaranty Association ("FIGA") is activated to help pay outstanding claims. The claims process will continue with the adjusting being performed by representatives from FIGA. However, claims for losses incurred after the transition to Citizens on July 1, 2006 will be processed and paid by Citizens.

38. What is the Florida Insurance Guaranty Association?

The Florida Insurance Guaranty Association (“FIGA”) is a nonprofit corporation statutorily created to provide a mechanism for the payment of claims when an insurance company is ordered liquidated.

39. How do I file a new claim for a loss incurred prior to July 1, 2006?

FIGA is processing new covered claims. In order to file a new claim, you should contact FIGA at:

Florida Insurance Guaranty Association P O Box 10366 Jacksonville, Florida 32247-0366

1-866-928-4310 (toll-free)

Hours of Operation are Monday - Friday from 8:00 A.M. - 8:00 P.M.

www.figafacts.com

40. How do I file a new claim for a loss incurred on or after July 1, 2006?

All claims that occur on or after July 1, 2006, for Citizens Transition Coverage should be reported to 1-866-875-8869.

41. What is the status of my current pending claim?

The processing and payment of pending covered claims will be made by FIGA (subject to the lesser of policy limits or FIGA’s maximum cap). The maximum amount FIGA will cover is $300,000 with special limits applying to (1) damages to structure and contents on homeowners claims and (2) on condominium and homeowners association claims. For damages to structure and contents on homeowners claims the FIGA cap is an additional $200,000. For condominium and homeowners association claims the cap will be $100,000 multiplied by the number of units in the association. No claim will be paid in excess of this cap. All claims are subject to a $100 deductible over and above any deductible identified in your policy. You may file a claim in the estate of the insurance company for the $100 deductible and for amounts over the cap. The Receiver will send proof of claim forms and instructions for filing a claim.

42. Will I receive all of the money I am now due from my claim?

In liquidation, your covered claims will be processed by representatives from FIGA. All covered claims will be paid by FIGA (subject to the lesser of policy limits or FIGA’s maximum cap). The maximum amount FIGA will pay is $300,000 with special limits applying to (1) damages to structure and contents on homeowner’s claims and (2) on condominium and homeowners association claims. For damages to structure and contents on homeowner’s claims the FIGA cap is an additional $200,000. For condominium and homeowners associations, the cap will be $100,000 multiplied by the number of residential units in the association. All claims paid by FIGA are subject to a $100 statutory deductible. You may file a claim in the estate of the insurance company for the $100 deductible and for amounts over the cap. The Receiver will send proof of claim forms and instructions for filing a claim.

43. Our pending condo association claim is now being handled by the Florida Insurance Guaranty Association. We understand there is a cap of $100,000 per unit. Does the $100 deductible apply to each unit or to the policy?

The $100 statutory deductible applies to the policy.

44. What is a covered claim?

A covered claim is defined by Section 631.54, Florida Statutes, and means "an unpaid claim, including one of unearned premium, which arises out of, and is within the coverage, and is not in excess of the applicable limits of an insurance policy..."

45. If my home is uninhabitable, will FIGA pay for another place for me to live?

If your dwelling is damaged due to a disaster and you must move due to the uninhabitable condition of the dwelling, or if a civil authority prevents access to the dwelling, the Additional Living Expense (ALE) provision of your homeowners policy may pay reasonable additional expenses. Your policy controls this.

46. Are disaster evacuation expenses covered by FIGA?

Your policy controls what is covered. Generally, voluntary evacuation expenses will not be covered by your insurance policy, and only under certain conditions will mandatory evacuation expenses be covered.

47. Is the Condominium Association’s loss assessment for the disaster claim covered under my Poe Insurer’s policy?

Since policies vary you should review your coverage with your agent. Generally, condominium associations may assess individual units for damage to common areas which aren’t covered by the association’s policy. Your unit owners policy may provide limited coverage.

THE DATE OF LOSS FOR THE ASSESSMENT CLAIM WILL BE THE DATE ON THE ASSESSMENT LETTER.

If the assessment letter from your condominium association is dated prior to July 1, 2006 (or the date the policy was cancelled if prior to July 1, 2006), then FIGA will administer the claim.

If the date of the assessment letter from your condominium association is after July 1, 2006, you may have a claim against the new insurance company (Citizens if Citizens Transition Coverage was obtained).

48. I have a flood policy with a Poe Insurer and I need to file a claim for a loss incurred prior to July 1, 2006. Who do I contact to file my claim?

If you have a flood claim, you must contact National Flood Services, Inc. which is currently servicing the flood business written by the Poe Insurers. Claims may be filed by contacting National Flood Services, Inc. at 1-800-759-8656. The Florida Insurance Guaranty Association is not handling flood claims on behalf of the Poe Insurers.

49. I have a flood policy with a Poe Insurer and I need to file a claim for a loss incurred on or after July 1, 2006. Who do I contact to file my claim?

The Receiver has sold the flood book to Fidelity National Property and Casualty Insurance Company, another authorized insurance company. Independent agents and policyholders can contact Fidelity National Property and Casualty Insurance Company toll free at (800) 820-3242 or via facsimile at (800) 850-3299. Independent agents can also reach Fidelity National Property and Casualty Insurance Company by visiting their website at www.fidelitynationalflood.com or via e-mail at floodcustomerservice@fnf.com.

50. There is a lawsuit being brought against me. What should I do?

You should contact FIGA immediately at 1-866-928-4310 (toll-free). FIGA will determine if you are entitled to receive legal defense just as your insurance company would have done if it were still solvent.

51. I am scheduled for mediation with my current Poe Insurer. Will I still be able to go to mediation?

In liquidation, your claims will be handled by representatives from FIGA. The mediation process will be available. However, if there is pending litigation, FIGA’s statutory stay of litigation may affect the mediation process by temporarily postponing scheduled mediation. You will need to contact FIGA for more information.

52. I went to mediation but the Poe Insurer has not complied with the agreement we reached in mediation. Who will make sure the agreements are complied with?

In liquidation, FIGA will handle claims and will review these situations on a case by case basis.

AGENT INFORMATION:
53. What will be the process for submitting an application to Citizens for Citizens Regular Coverage (for former Poe policyholders only)?

Personal Residential – MultiPeril (ePAS):

o Submit a completed application, premium check and a copy of the Poe Insurer declarations page only.
o For expedited processing, enter in ePAS the prior company name and policy number. These fields are located on the “Other” tab.
o Write the previous Poe Insurer name and policy number on the top right corner of the Citizens application.
o No additional documentation required.
Personal Residential – Wind-only (eWind):

o Submit a completed application, premium check and a copy of the Poe Insurer declarations page only.
o For expedited processing, write the previous Poe Insurer name and policy number on the top right corner of the Citizens application.
o No additional documentation required.
Commercial policies – MultiPeril (CLA) and Wind-only (HRA):

o Submit a completed application with all required documents, photos, etc. and a copy of the expiring Poe Insurer declarations page.
o For expedited processing, write the previous Poe Insurer name and policy number on the top right corner of the Citizens application.
54. What is going to happen to the commissions I have been paid by the Poe Insurers?

If you are appointed as an agent by Citizens for the Citizens Transition Coverage, you may retain the commission you have already been paid by the Poe Insurers for Poe Coverage that renews prior to July 1, 2006. However, if the Citizens Transition Coverage cancels early, you are required to return the remaining unearned commission to the Receiver.

55. How do I process policy and underwriting changes for Citizens Transition Coverage?

Agents appointed by Citizens for Citizens Transition Coverage that have access to Poe systems will continue to be able to service all inquiries relating to policy coverage, endorsements, and cancellation of Citizens Transition Coverage as you have in the past. Agents unable to process a change directly may call the Citizens’ Tampa Service Center at 1-866-875-8877.

56. Is there a new mailing address for correspondence and premium related to Citizens Transition Coverage?

Effective immediately, Citizens’ has established a post office box in Tampa for Citizens Transition Coverage policies. All correspondence or premium payments for Citizens Transition Coverage should be sent to:

Citizens Property Insurance Corporation Citizens Transition Coverage PO Box 172969 Tampa, FL 33672-0969

This post office box is for Citizens Transition Coverage policies only! DO NOT SEND applications, correspondence, or payments for Citizens Regular Coverage to this box. They will be returned and processing will be delayed.

57. Where should overnight packages be sent?

Any documents that must be sent overnight to the Citizens Tampa Service Center must be sent

U.S. Postal Service (USPS) overnight. FEDEX and other overnight services are not accepted at the post office.

58. Should agents submit an application for Citizens Regular Coverage immediately for policyholders whose Citizens Transition Coverage expires in July, 2006 (even if they have paid their Poe premium)?

Agents who cannot secure replacement coverage through another insurer may submit an application for Citizens Regular Coverage for policyholders whose Citizens Transition Coverage expires in July, 2006. Be sure to enter correctly the prior company name and policy number, and attach a copy of the expiring Poe declaration page to expedite processing.

59. Will policyholders whose policies expire in July be sent a notice about how to find replacement coverage?

Citizens is aware that policyholders whose policies have normal expiration dates in July 2006, will have limited time to receive offers of replacement coverage. The Receiver has mailed a “Notice to Policyholders” along with Citizens’ “Notice of Offer of Automatic Coverage” outlining the policyholder’s options.

60. Will Citizens issue a non-renewal notice or reminder for Citizens Transitions policies prior to the expiration date?

No. Citizens’ “Notice of Offer of Automatic Coverage” referenced above will be the only notice mailed regarding this issue. Policyholders should be aware of their policy expiration date and begin seeking replacement coverage prior to that date.

61. Can policyholders apply for Citizens Regular Coverage immediately to avoid the statutory deductibles and cap limits that would be applicable on any June 2006 loss claims handled by FIGA?

No. According to Florida Statutes, a risk is not eligible for coverage with Citizens if existing or replacement coverage is available with an authorized insurer. Claims which occur prior to 12:01 a.m. on July 1, 2006, will be covered by FIGA and are subject to any applicable statutory deductibles and cap limits.

62. Since commercial lines policyholders, including condo associations, with aggregate building limits of $25 million or greater are not eligible for Citizens Transition Coverage, will Citizens waive the 30 business day rule for coverage to be bound through Citizens Regular Coverage?

Citizens is handling these on an exception basis and will be working with the affected agencies individually. Citizens underwriting staff have been in contact with the producing agents of these policies.

63. If the Citizens Transition Coverage includes wind and all other perils and the risk is located in a wind eligible territory, how should the policy be written at expiration?

If the agent is unable to secure replacement coverage in the voluntary market, two separate applications (wind-only and multi-peril) must be submitted for Citizens Regular Coverage.

64. If a mortgage company notifies an insured that Citizens coverage is not acceptable and must be replaced within 60 days, what should the agency do?

The Receiver has mailed a “Notice to Policyholders” with Citizens’ “Notice of Offer of Automatic Coverage” to policyholders. A copy provided to the lender should be sufficient proof of coverage.

65. I am owed commissions from a Poe Insurer. Will I be paid?

Yes. Commission checks have been mailed through the May 2006 commissions owed by the Poe Insurers. The Receiver paid commissions owed by Southern Family Insurance Company and Atlantic Preferred Insurance Company. Poe and Associates has informed the Receiver that it has mailed commissions due from Florida Preferred Property Insurance Company, which was not in receivership until June 1, 2006.

66. Is this an assumption of Poe coverage by Citizens, since Citizens is using the policyholder's Poe Insurer forms and rates for the remaining term of the Poe Coverage?

No. This is not an assumption of coverage. Per the Liquidation Plan, Citizens will have approval from the OIR to use Poe Insurer's forms and rates as Citizens' forms and rates for the remaining term of the Poe Coverage.

LIQUIDATION AND LIQUIDATED INSURERS:
Company Information. Effective June 1, 2006, the Second Judicial Circuit Court in Leon County, Florida, entered orders placing Atlantic Preferred Insurance Company, Florida Preferred Property Insurance Company, and Southern Family Insurance Company in receivership for purposes of liquidation. These companies are members of the Poe Financial Group and are referred to together as the “Poe Insurers.” The Florida Department of Financial Services is the court-appointed Receiver of the Poe Insurers. In liquidation, the Florida Insurance Guaranty Association is activated to help pay outstanding claims of the Poe Insurers.

Atlantic Preferred Insurance Company: Atlantic Preferred is a Florida corporation that was formed in 1996 and is headquartered in Tampa, Florida. The company is authorized to transact business in the state of Florida as a domestic property and casualty insurer. Atlantic Preferred wrote homeowners multi-peril, allied lines, and fire insurance coverage. In March 2006, Atlantic Preferred reported an impaired financial condition on its annual financial statement as of December 31, 2005. As a result of its financial condition, the company ceased writing new insurance policies and ceased offering renewal policies on or about March 5, 2006. Atlantic Preferred was initially placed in receivership for purposes of rehabilitation on May 1, 2006. As of June 1, 2006, Atlantic Preferred had approximately 137,000 policies in force.

Florida Preferred Property Insurance Company: Florida Preferred Property is a Florida corporation that was formed in 2002 and is headquartered in Tampa, Florida. The company is authorized to transact business in the state of Florida as a domestic property and casualty insurer. Florida Preferred Property wrote homeowners multi-peril, allied lines, and fire insurance coverage. In May 2006, Florida Preferred Property reported an impaired financial condition on its quarterly financial statement as of March 31, 2006. As of June 1, 2006, Florida Preferred Property had approximately 144,000 policies in force.

Southern Family Insurance Company: Southern Family is a Florida corporation that was formed in 1996 and is headquartered in Tampa, Florida. The company is authorized to transact business in the state of Florida as a domestic property and casualty insurer. Southern Family wrote homeowners multi-peril, allied lines, and fire insurance coverage. In March 2006, Southern Family reported an impaired financial condition on its annual financial statement as of December 31, 2005. As a result of its financial condition, the company ceased writing new insurance policies and ceased offering renewal policies on or about March 5, 2006. Southern Family was initially placed in receivership for purposes of rehabilitation on April 25, 2006. As of June 1, 2006, Southern Family had approximately 44,500 policies in force (not including flood policies).

Liquidation Plan: In conjunction with the Office of Insurance Regulation, the Florida Insurance Guaranty Association, and Citizens Property Insurance Corporation, the Receiver developed a plan to provide for an orderly transition of eligible policyholders from the Poe Insurers to other insurers or to Citizens while continuing to serve the interests of the Poe Insurers’ creditors and the public. This plan was submitted to and approved by the Court on June 2, 2006. Under the Liquidation Plan, eligible policyholders will be automatically transitioned to Citizens Property Insurance Corporation effective July 1, 2006 without the need for a new application or additional underwriting review. A copy of the Liquidation Plan and additional information regarding the Transition Coverage provided by Citizens is available on the Receiver’s website, www.floridainsurancereceiver.org.

What is Rehabilitation?
Under Florida law and Court order, the Department of Financial Services, Division of Rehabilitation and Liquidation serves as Receiver of financially impaired insurance carriers. The purpose of rehabilitation is to ensure company assets are preserved and policyholders are protected. Companies may be rehabilitated if the company can be reformed and revitalized. If the company is not a candidate for rehabilitation, the company may be placed into liquidation.

What is Liquidation?
Liquidation is similar to bankruptcy. When a company is liquidated, the Receiver collects the assets of the company and verifies the liabilities such as claim payment and bills. The Receiver then develops a plan to distribute the company’s assets according to law and submits the plan to the Court for approval.

 
For more information, contact the Florida Department of Financial Services at 1-800-882-3054.

Rehabilitation and Liquidation Website
http://www.floridainsurancereceiver.org