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2023 Application and Rule Changes
11.03.22

The Florida Office of Insurance Regulation (OIR) has approved Personal Lines application and rule changes effective January 1, 2023.

PolicyCenter and Application Changes

For all Personal Lines new business, the verbiage for the following has been amended in PolicyCenter® and on applications under the Pre-Qualification Questions and Eligibility Questions screen under the General tab.

The Personal Residential Multiperil application for Animal Liability Exclusion will be changed to Acknowledgement of Policy Exclusions and Limitations to better inform policyholders of what may not be covered under both property and liability sections of their policy.

Rule Updates

The following rules in the underwriting guidelines manuals have been updated for Personal Residential Multiperil (PR-M) and Personal Residential Wind-Only (PR-W) policies effective January 1, 2023:

Line of Business Eligibility Rule Description of Changes
PR-M and PR-W Rule 200 – B: Eligibility -Statutory

Eliminates ability for customers with current coverage (renewal or in force policy) to qualify under “no market available” rule. Customer’s current premium must be 20% higher than comparable coverage with Citizens in order to qualify.

Due to SB 76, update to include schedule of the annual glide path allowable rate changes.
PR-M and PR-W Rule 208 – A-4 Business Exposure: Uninsurable Properties

Clarifies the definition of business to include whether for profit or not and frequent visitation of the property. Most businesses remain ineligible for coverage.

Note: Any type of adult or childcare other than Family Day Care Homes are ineligible.
PR-M Rule 208 – A-6 Day Care: Uninsurable Properties Simplifies rule language. Licensing requirements remain the same.
PR-M and PR-W Rule 208 – A-7 Farm or Ranch: Uninsurable Properties Clarifies definition of farming. Commercial farming and ranching remain ineligible for coverage. Incidental farming remains eligible for a dwelling fire policy without liability. Personal use activities – including gardens, chickens or other livestock as pets or personal use – are not considered farming and may be eligible for a homeowners or dwelling fire policy with liability.
PR-M Rule 208 – D Liability: Uninsurable Properties

Updated description of exotic animals to include those prohibited by or requiring a special permit by Florida Administrative Code. Such risks are ineligible for policies with Liability but may be eligible for a dwelling fire policy without liability.

Excessive, Unusual or Extra-Hazardous Exposure – clarifies that policies with other unusual or dangerous conditions may be submitted unbound for eligibility on a dwelling fire policy excluding liability.
PR-M and PR-W Rule 208 – E Applicant - Material Misrepresentation, Insurance Fraud or Arson: Uninsurable Properties Updated rule: Any applicant, who in the past 15 years, has been canceled or nonrenewed for misrepresentation, convicted or pleaded no contest to insurance fraud, or convicted or pleaded no contest to arson is ineligible.

Resources

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, and then view the updated underwriting manuals under the Spotlight section on the right side of the page.

Print 20221103 - 2023 Application and Rule Changes

Legal Disclaimer

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.