Florida’s Citizens to Resume Policy Cancellations, Nonrenewals Next Month

July 14, 2020

Citizens Property Insurance Corp., Florida’s insurer of last resort, will resume processing cancellations and nonrenewal notices next month after halting them back in March in response to the state’s coronavirus outbreak.

The insurer said in an agent bulletin July 9 that it will resume the processing of cancellations and nonrenewals beginning Aug. 15, 2020.

Citizens originally stopped these processes on March 27 “to ease the burden for policyholders” due to the impact of the COVID-19 health risk.

The insurer said direct-billed customers with past-due premium accounts must make a payment to avoid cancellation by August 15. For policyholders who are unable to pay their past-due amount, Citizens will allow them to make a payment arrangement. This option is available only to COVID-affected policyholders with past-due balances, and they must contact Citizens by August 15 to initiate the arrangement.

Payment arrangement options are not available for new business or current policyholders who have less than three months remaining in their policy term.

Citizens said it would immediately email impacted agents and provide policy lists and details regarding payment options, as well as mail/e-mail eligible past-due policyholders with payment options and related information. It will also contact via mail or e-mail ineligible policyholders with information that their policy will cancel if payment is not received by August 15.

If a customer’s coverage is no longer is needed, agents should cancel it in PolicyCenter as soon as possible, Citizens said.

Additionally, Citizens has developed special payment arrangements for eligible policyholders affected by COVID-19. Specific details are available on its website. The special payment arrangement will divide the past-due amount evenly by the number of months left in the term. The option is available for its commercial and personal lines products, except for new business or for current policyholders who have less than three months remaining on their policy term.

Citizens will also resume processing cancellations and nonrenewals on August 15 for policies that do not meet Citizens’ underwriting guidelines.

Citizens’ program for allowing agents to submit alternative documents and deferrals for new business applications will also end on August 15.

Source: Citizens Property Insurance Corp.

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