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?”
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.
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.
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).
What is Citizens Regular Coverage?
Citizens Regular Coverage is a new policy with Citizens using its regular policy forms and premiums.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
If I replaced my coverage prior to the normal policy
expiration date of my Poe Coverage, will I receive a refund for the unearned premium?
Policyholders who cancelled their in-force Poe Coverage prior to July 1, 2006 or policyholders who had policies
in-force that did not qualify for Citizens Transition Coverage are entitled to a pro-rata refund of the unused portion of their premiums. The
amount of 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
from FIGA. The unearned premium not paid by FIGA becomes a claim against the estate. The Receiver has received court approval to deem specific return premium claims as timely filed. So if your policy did not transition to Citizens or if your policy was cancelled prior to liquidation and you received a portion of your premium refund from FIGA
or if the amount of return premium due to you is less than $100, the remaining unearned premium that was not paid by FIGA is deemed as a timely filed claim against the estate and you do
not have to file a proof of claim form with the Receiver.
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.
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. If your gross refund is less than $100, you will not currently receive a refund of your unearned premium. The unearned premium not paid by FIGA becomes a claim against the estate. The Receiver has received court approval to deem specific return premium claims as timely filed. So if your
in-force policy did not transition to Citizens or if your policy was cancelled prior to liquidation and you received a portion of your premium refund from FIGA, the remaining unearned premium that was not paid by FIGA is deemed as a timely filed claim against the estate and you do
not have to file a proof of claim form with the Receiver.
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.
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.
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.
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.
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.
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.
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.
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.
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