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Commercial Lines Bulletin

New Agreed Value Option

Oktober 02, 2015 - ATB #008-15

Effective December 1, 2015, for commercial new-business and renewal policies, Citizens will offer an additional coverage option called Agreed Value, which will allow applicants and policyholders to waive coinsurance requirements (i.e., 80, 90 or 100 percent) for additional premium. In return for waiving the coinsurance requirement, the Agreed Value coverage will be offered at a surcharged rate factor of 1.05.

If Agreed Value is selected, all risks scheduled on a policy are subject to the Agreed Value option, with the exception of First-Loss risks. First-Loss risks can be scheduled on the same policy with Agreed Value risks; however, the Agreed Value - Statement of Values (CIT 16 15) form will be required only for non-First Loss risks.

The Agreed Value option will be added to the Coinsurance drop-down menu in the Policy Coverages section in PolicyCenter®.

Once the Agreed Value option is scheduled on the policy, annual updates are required. Approximately 150 days prior to each renewal, PolicyCenter will send an activity to the agent, requesting a completed and signed Agreed Value - Statement of Values form and new appraisal to continue the Agreed Value option. If the new Agreed Value – Statement of Values form or new appraisal are not received prior to renewal date, the policy will nonrenew. Underwriters will rescind the nonrenewal when an acceptable form and appraisal have been received. 


  • Agreed Value risks are subject to the 100 percent insurance-to-value requirement.
  • Midterm changes are not allowed.
  • The Agreed Value option does not apply to Commercial Nonresidential Multiperil (CNR-M) or Builders Risk policies. 

Citizens’ systems, forms and manuals have been updated to reflect this change.

Agent Bulletins are provided for historical purposes only and 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, then selecting Search → Search Frequently Asked Questions