To further the consistent enforcement of submission quality and timeliness standards, Citizens will soon be changing the current new-business production thresholds for disciplinary action and their application in our Agent Performance Standards Program.

These changes will allow Citizens to more consistently enforce underwriting quality and submission standards by imposing disciplinary action based on the total volume of violations, regardless of new-business volume.

New Disciplinary Process

Effective January 1, 2026, Citizens will implement a structured and progressive disciplinary framework that is divided into two categories based on the type and frequency of violations.

Eligibility and Insurability Enforcement Program
PV01 and PV02 Violations Combined

Performance violations subject to this disciplinary process will be assigned when:

• Performance Violation 1 (PV01) – Ineligible Risk: failure to upload information demonstrating a new-business risk submitted outside of the Clearinghouse Program meets Citizens’ statutory eligibility requirements; submitting a risk that exceeds loss frequency guidelines; or failing to submit acceptable proof of required flood coverage documentation.
• Performance Violation 2 (PV02) – Uninsurable Risk: submitting a risk that is uninsurable per the applicable underwriting manual and/or as evidenced by inspections submitted with the new-business application

The disciplinary actions will be cumulative and escalate based on the number of violations. Prior to receiving a warning notice, violations will drop off on a rolling 12-month basis. After the warning notice is received, violations remain static and do not drop off for further disciplinary action.

Premium Credit, Signatures, and Timeliness Improvement Program
PV03, PV04, and LSV Violations Combined (Quarterly Review)

Violations for these infractions will be assigned:

• Performance Violation 3 (PV03) – Premium Submitted on an Unbound Risk or Failure to Provide Premium Finance Company Contract: when premium is posted on an unbound risk prior to underwriting review and approval, regardless of the final determination of eligibility or insurability. Or there was a failure to upload a premium finance company contract when a policy is financed through a premium finance company
• Performance Violation 4 (PV04) – Incorrect Application of Credits, Discounts or Surcharges; or Missing Signatures: when a document is submitted without all required signature(s), without the required initials of all appropriate parties, or there was a failure to provide proof documenting feature(s) for which a credit or discount has been applied
• Late Submission Violations (LSV) – If all required documents are not uploaded and the SUBMIT button is not selected by the fifth business day from the effective date

Citizens will formally engage agents who are well above the statewide volume of violations and provide them with 90 days to materially improve their results, or their agent appointment will be terminated. Citizens’ Agency Management team will be reaching out to you directly if you fall into the Premium Credit, Signatures, and Timeliness Improvement Program.

The structure is as follows:

Note: Citizens will define and communicate the level of improvement required to avoid termination. Clear expectations will be set for each agent placed in the program.

Implementation Timeline

Beginning October 2025, Citizens’ Agency Management team will be engaging agents who are significantly out of pattern in these areas to provide support to ensure they are trained on the updated requirements.

Citizens reserves the right to take immediate action against any agents who show a significant deterioration in their results.

Effective January 1, 2026, the formal disciplinary process is scheduled to begin:

• PV01 and PV02 counts will be reset for all agents. All agents who accumulate four PV01’s and/or PV02’s in the Eligibility and Insurability Enforcement Program will receive a warning notice and will be subject to suspension or termination should they accumulate additional violations.
• PV03, PV04, and LSV – Citizens will review fourth quarter 2025 results to determine which agents qualify for the Premium Credit, Signatures, and Timeliness Improvement Program. Citizens will formally engage those agents and establish 90-day performance improvement goals. Agents that fail to achieve those goals will be terminated.

Resources

Log in to the Agents site, and select

• Training > Performance Standards
• The Performance page
• Training > Personal Lines Job Aids > Agent Performance Standards Program Guide

Citizens will offer webinars, and the Agency Management team will also provide direct support to agents identified for performance improvement.