HRA Emergency Assessment

2005 HRA Emergency Assessments

1. How long will Emergency Assessment continue to apply on transactions?

The Citizens 2005 HRA Emergency Assessment (EA) will continue to apply to all policies, including endorsements and cancellations or other transactions, with policy effective dates prior to July 1, 2015. Provided below is a summary of the applicable assessment percentages based on the policy effective date:

  • Policies issued or renewed on or after July 1st, 2015. The EA is 0 percent.
  • Policies issued or renewed July 1, 2011 through June 30th, 2015. The EA is 1 percent.
  • Policies issued or renewed July 1, 2007 through June 30, 2011. The EA is 1.4 percent.

On January 1, 2017, the 2005 HRA Emergency Assessment no longer will be applicable to any policy transaction. See GEAR reporting requirements.

2. What are the GEAR reporting requirements?

All carriers shall continue to report assessable direct written premium related to the 2005 HRA Emergency Assessment through the Office’s General Emergency Assessment Reporting (GEAR) quarterly data collection.

The GEAR reporting requirement will continue to remain in effect until direct written premium information for the fourth quarter of 2016 (due March 1, 2017) has been reported.

The GEAR reporting requirement will cease after the fourth quarter 2016 GEAR Report has been submitted.

3. How will the final reconciliation of balances owed to/(from) Citizens be handled?

In connection with the termination of the 2005 HRA Emergency Assessment, Citizens has commenced its final accounting and reconciliation of balances owed to/(from) Citizens.

During October 2015, each carrier will receive a communication indicating the carrier balance as of September 31, 2015, and a cash receipts detail report. These reports will be provided to facilitate a comparison between the carrier’s records and the records of Citizens. Carriers that do not anticipate policy transactions on policies with effective dates prior to July 1, 2015, reducing the balance below $0 owed to Citizens are requested to pay the amount due. Any amounts that remain due to Citizens and unpaid as of March 1, 2016, will accrue interest at a rate of 1 percent per month as provided for in Consent Order 87822-06.

If your company has not received this communication by November 15 2015, contact Assessment@citizensfla.com to update your contact information.

4. How are refunds for overpayment of the Emergency Assessment handled?

Beginning January 2016, Citizens will begin processing refunds and will continue to process refunds quarterly in each May, July, October, and January. The last quarter that refunds will be processed will be May 2017 to coincide with the final GEAR Report submission date of March 1, 2017. All requests for refunds must be accompanied by a Refund Request form.

Any amounts that remain due to Citizens and unpaid as of March 1, 2016, will accrue interest at a rate of 1 percent per month as provided for in Consent Order 87822-06.

 

GEAR Template Chart
  Quarter   Due to FLOIR   Dates Refunds Processed*
  3rd Q 2015   11.15.15   January 2016
  4th Q 2015   03.01.16   May 2016
  1st Q 2016   05.15.16   July 2016
  2nd Q 2016   08.15.16   October 2016
  3rd Q 2016   11.15.16   January 2017
  4th Q 2016   03.01.17   May 2017

 

*Tentative

5. There have been transactions to policies that have an effective date prior to July 1, 2015. Will the 2005 HRA Emergency Assessment be applicable to these transactions?

Yes – All transactions (endorsements, cancellations) are subject to the 2005 HRA Emergency Assessment if the policy to which they apply has an effective date prior to July 1st, 2015. See assessment rates.

6. Our policies with an effective date prior to July 1, 2015 have had no activity. Are we required to submit a GEAR Report?

Yes, The GEAR reporting requirement will continue to remain in effect until assessable direct written premium for the fourth quarter of 2016 (due March 1, 2017) has been reported.

7. After researching our past GEAR filings, we determined that we overpaid and are due an amount from Citizens. How do we request a refund?

A Refund Request form is available on our corporate website. Once this form has been completed and submitted, Citizens will contact the submitter and start the refund process.