It's well-known that the homeowners insurance market in Florida is exceptionally difficult. Insurers have pulled out of the state limiting available policies, storms have caused extensive damage, and there have been issues with abuses of assignment of benefits. Nevertheless, there is a program to move policies from Citizens, the insurer of last resort, back into the private market. Insurers must file documentation with the Office of Insurance Regulation showing that standards are met and the insurer has the financial resources and a business plan in place to handle claims. The department recently issued a bulletin reminding insurers of upcoming deadlines for filing for policy assumption. Insurers interested in requesting policies for a November assumption must apply by July 28, 2023.

The request must include the following:

• a depopulation plan,
• two approved catastrophe models,
• a reinsurance chart reflecting reinsurance to the 130 PML,
• cover notes on reinsurance agreements with signed Interest & Liabilities Agreements,
• name of the company's reinsurance broker,
• list of top reinsurers the insurer plans to use showing rates and whether authorized,
• unauthorized or certified, updated quarterly financial projections,
• breakdown by county of policies to be assumed,
• updated coverage worksheet and coverage comparison,
• summary of management's experience for commercial residential requests,
• summary of who will perform policy servicing and claims handling,
• and any additional information requested by OIR.

The depopulation plan must include the number of policies requested, the lines of business from which the policies are requested and number of policies per line, how many are multi-peril and how many are wind only, types of policies such as HO 3, DP3, etc., detailed underwriting criteria for the assumed policies beyond the underwriting manual, and the iFile log numbers that correspond to the policy types the company is targeting.

If the request is approved, the OIR will issue a consent order indicating how many policies may be moved out of Citizens, what the assumption date will be and any additional provisions. Further details may be found here.