Redesigned Manuals, Windstorm Protective Device and Short-Rate Cancellation Changes
June 05, 2013 - ATB #008-13
The following changes apply to new and renewal policies, effective 6/1/2013.
Redesigned Manuals: Personal Residential (PR-M and PR-W)
To improve ease of use and consistency, Citizens has redesigned its personal lines underwriting manuals. The manuals now have the same format for all lines of business and follow the general layout of the current wind-only manuals. Highlights of the redesigned manuals include:
- Rules are categorized and standardized into color-coded sections and include consistent numbering conventions across product lines.
- Where appropriate, rules have been rewritten or reorganized, redundancies reduced, and obsolete material eliminated.
- All rates now are grouped together in Section 5.
While there were few substantive changes made, the following two rules changes are of note:
Windstorm Protective Device Changes: Personal Residential (PR-M and PR-W)
Citizens no longer will require that policyholders who receive opening-protection mitigation credit deploy shutters and other wind protective devices when a tropical storm watch or warning is issued. This is a change from ATB #014-12: Personal Residential Policies: Loss-Payment Reduction for Failure to Close and Secure Shutters. Although use of protective devices no longer is required during a tropical storm watch or warning, deploying such devices during those times is a good practice.
During a hurricane watch or warning issued by the National Weather Service’s National Hurricane Center for the part of the state in which the property is located, however, policyholders who receive opening-protection mitigation credit must deploy shutters and other protective devices. Failure to comply may result in a reduced loss payment if a claim is submitted for damages due to windstorm.*
*Claim payments will not be reduced in the event of a total loss.
Windstorm Protective Devices endorsement forms have been amended.
Short-Rate Cancellation: Personal Residential Wind-Only (PR-W)
Residual Market Special Provisions - Florida coverage forms have been revised to expand exceptions to the short-rate penalty rule. As of June 1, 2013, PR-W policyholders who request cancellation of an existing policy for one of the two following reasons will have their policy cancelled pro rata even if coverage was provided for all, or a part of, the hurricane season (June 1 through November 30):
- Insured maintained continuous coverage for three years or more with Citizens or any other carrier.
- Mortgage on the property is paid in full during the term of the policy.
Note: Cancellation requests must be submitted to Citizens with acceptable documentation.