20230111 Required Document Updates for New-Business and Roof Requirements - Public
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Required Document Updates for New-Business and Roof Eligibility
January 11, 2023
Citizens has updated the new-business required documents for Personal Lines policies that include changes to the new-business eligibility documents and verification of roof replacement.
New-Business Eligibility Enhancement
As announced in the Personal Lines Bulletin: 2023 Application and Rule Changes, Citizens now requires customers with a renewal or in-force policy effective January 1, 2023, or later to compare all known offers of coverage to Citizens’ premium to confirm eligibility under the 20% rule. If the comparable premium is more than 20% greater than Citizens’ premium, the agent should only select option B in PolicyCenter® to answer the question Offer of Coverage (A, B, or C must be selected to be eligible for coverage.).
Figure 1: Pre-Qualification Questions
Acceptable documentation for option B must include both of the following and will be presented on the Required Documents screen:
- A copy of current declarations page or renewal offer showing current and/or offered premium is more than 20% of comparable coverage with Citizens
- A copy of your comparative rate or a screenshot from at least one carrier portal indicating the offered premium is more than 20% of comparable coverage with Citizens or no market available
Figure 2: Offer of Coverage B
- If selecting option B, policies submitted through the Property Insurance Clearinghouse will still need to submit proof that all known offers exceed 20%. Clearinghouse submission will not waive these new requirements.
- As previously communicated in the Agent Update Bulletin: Changes to New Business Processing and Use of Third Parties, the clearinghouse may be bypassed.
Option A (I am unaware of any offer of coverage from an authorized insurer.) is no longer an acceptable answer for these customers. This option should only be selected if: the customer has been nonrenewed or cancelled; the coverage has lapsed; or if it is a new purchase and there are no offers of coverage from an authorized insurer.
Acceptable documentation for option A must include both of the following and will be presented on the Required Documents screen:
- Cancellation or nonrenewal notice or proof of new purchase
- A copy of your comparative rate or a screenshot from at least one carrier portal for comparable coverage that indicates no market available
Figure 3: Offer of Coverage A
For additional guidance and additional scenarios, please see the New Business Eligibility Guide, which can be found in FAQ 4517.
Roof Replacement Documentation
Citizens has updated the required documents for proof of roof replacement for risks with roofs older than 25 years for shingle or other types of roofs and 50 years for tile, slate, concrete or metal roofs, effective January 1, 2023, or later. The Uniform Mitigation Verification Inspection Form OIR -B1-1802, the 4-Point Inspection Form and the Roof Inspection Form are no longer acceptable for proof of roof replacement.
You will be able to bind the submission if you have one of the following acceptable items of documentation:
- Approved building permit indicating completed work
- Electronic record of a permit from the applicable county website
- Acceptable proof of completed work by a licensed contractor and a paid-in-full invoice
If you have proof of roof replacement, enter the year it was updated in the Year of Last – Roofing field on the Dwelling Construction screen.
Figure 4: New Roof Replacement Support Document
Roofs That Do Not Meet Roof Replacement Requirements
Risks that do not meet the roof replacement eligibility requirements will be submitted unbound and may be eligible for coverage by proving that the roof has at least three years remaining useful life.
Acceptable documentation includes:
- A completed Roof Inspection Form
- 4-Point Inspection Form
- A statement from a licensed roofing contractor
Enter the remaining useful life on the Dwelling Construction screen.
For more information regarding these changes:
- Log in to the Agents website.
- Go to the Personal section.
- Click on PR-M or PR-W on the left side of the page.
- View the updated required document guides and product guides by policy type on the right side of the page.
Credentialed agency staff can log in to the Agents website and select Training, locate the Spotlight section on the right side of the page, and in the Resource section on the bottom access the following:
Citizens provides agent communications online for historical purposes only, and the communications have not been updated to include any changes that may have been made after publication. Agents can find the latest information by reviewing the applicable underwriting manuals, and by logging in and accessing our FAQs, which are available from the top of any page on our website.