Citizens Ins Florida - New Legislation - Clearinghouse

[PhilL]

Does anyone in Florida have any more on how the new 'clearinghouse' is going to operate on Jan 1, 2014?
The most I have seen on it in terms of explaining anything is that the current system of the consumer or the agent having a choice to reject coverage offers from private insurers...to be with Citizens... will not be an option.

Instead, a policy will have to go into a 'clearinghouse' for 48 hrs, during which time private insurers will be reviewing them for coverage offers. Then, new prospects receiving a coverage offer within 15 percent of Citizens rates will not be eligible for Citizens.
Supposedly, Florida agents will own any policy that expires either with Citizens or any insurer that participates with the clearinghouse.

How is all this going to work with regard to carrier representation within the agencies? Thanks for any update.

 

[fearsback]

I am very interested in hearing anybodies thoughts on this as well. This can really hurt the independent agent with appointments based on what I have read. Per 2 conversations I have heard from upper execs at two large homeowners markets in Florida they are opting out as of right now. But they said if one company opts in everything can change in a moment.

 

[PhilL]

Thanks. We should get some clarification very soon. Lots of early misunderstanding. Spoke to your friend, David W at We Insure this afternoon and he said he had a conf call w the FAIA on it.
Said he'll let me know. You may hear before I do. Will share what I find out. Know you will also. Thanks.

I am very interested in hearing anybodies thoughts on this as well. This can really hurt the independent agent with appointments based on what I have read. Per 2 conversations I have heard from upper execs at two large homeowners markets in Florida they are opting out as of right now. But they said if one company opts in everything can change in a moment.

 

[Underwriter2Agent]

Thanks. We should get some clarification very soon. Lots of early misunderstanding. Spoke to your friend, David W at We Insure this afternoon and he said he had a conf call w the FAIA on it.
Said he'll let me know. You may hear before I do. Will share what I find out. Know you will also. Thanks.

This is what I have been told. Phil you are correct a policy will go into the clearing house for 48-72 hours and all carriers that opt in will have an opportunity to review the risk for an offer of coverage of course that is if they are writing in the zip code, so Miami Dade and Broward may not be impacted as much, if an offer is made and the insured is deemed ineligible for coverage with Citizens due to the 15% rule they cannot go to citizens for coverage.

As for carrier relationships I have been told that it will be much like the take out program or a limited service agreement where you may be able to view and process basic endorsements, not sure though I don't think anyone really is to be honest with you.

Also from what I see they are involving SF big time which would really impact the indy world giving them, SF, the same clearing house that we would have access to and essentially the same carriers.

These are all things I have gathered as mentioned I have gotten many different views from many different people. I guess as they say to be determined.. please share what you find out.

 

[fearsback]

I also heard State Farm was pushing this heavily, and have the money and power to make it happen. Thank you for that info Underwriter2agent, Broward and Dade still have several carriers willing to write which if they agree to the clearing house will even the playing field. So far no companies have agreed but once does they will all follow suit.

 

[Underwriter2Agent]

I also heard State Farm was pushing this heavily, and have the money and power to make it happen. Thank you for that info Underwriter2agent, Broward and Dade still have several carriers willing to write which if they agree to the clearing house will even the playing field. So far no companies have agreed but once does they will all follow suit.

No problem, hope we all get clarity on the situation sooner than later.

 

[inslady54]

Since you seem to be familiar with Citizens..any insight into their underwriting..have home and guest house on same parcel each with their own H03 policy. Wind with Citizens was written for Guest House but they say no..not homes on same parcel. They already have separate H03's for pete sakes. What difference does it make. Wind policy on main house "other structures" is not enough evden at ten percent. Is there any definition out there legally or otherwise what constitutes this decision by Citizens who are not an insurance company. Yes could write a DP but it is not that situation. It is not rented, just for family or houseguests to keep them out of the main house? Anyone familiar with this situation and can cite any precedence. Welcome all comments..Thanks.

 

[Jinc]

Thanks. We should get some clarification very soon. Lots of early misunderstanding. Spoke to your friend, David W at We Insure this afternoon and he said he had a conf call w the FAIA on it.
Said he'll let me know. You may hear before I do. Will share what I find out. Know you will also. Thanks.

Do you work with David?

 

[fearsback]

Yes David is one of the executives for We Insure Florida.

 

[Jinc]

Yes David is one of the executives for We Insure Florida.

Where are you at, what area?