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Citizens releases vendor contract information

Citizens Property Insurance Corporation on Monday released invoice information and other correspondence in response to inaccurate statements made last week by opponents to assignment of benefits reform regarding Citizens’ fee payment arrangement with a company that reviews estimates submitted following a water loss.

Citizens also released a letter from its vendor, Lynx Services LLC, verifying the accuracy of comments made last week by Citizens President, CEO and Executive Director Barry Gilway to members of the Senate Banking and Insurance Committee. Copies of the documents, redacted to comply with state and federal laws protecting confidential and exempt claim and policyholder information, are available here.

“It was important to respond quickly because these incorrect statements directly challenge the integrity of Citizens and our vendor,” said Barry Gilway, Citizens President, CEO and Executive Director. “We will continue to provide stakeholders with accurate and timely data while protecting the confidentiality rights of our customers.”

Citizens pays Lynx on a flat fee basis to review incoming water remediation bills and compare them to nationally recognized industry standards. Under the contract, Citizens has also reimbursed Lynx for travel costs and paid fees billed on a quarter-hour basis for additional expert or litigation analysis. On February 4, 2019, a presentation made to the Senate committee by another party incorrectly stated Lynx was compensated on a percentage basis based on the amount each invoice was reduced.

The original contract and executed amendment do contain a percentage-based compensation formula for negotiation services, but those services were never accessed. Citizens and Lynx have agreed to amend the contract to remove the provision to ensure it would never be used.

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About Citizens

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En el 2002, la Legislatura de la Florida creo a Citizens Property Insurance Corporation (Citizens), un asegurador alternativo sin fines de lucro, cuyo propósito público es proveer seguro, y atender a las necesidades de propietarios de viviendas que no pueden encontrar cobertura en el mercado privado de seguro.

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