CORE Recommendation
Updated CNRM to include all rates and rules, rather than
referencing ISO manual
AUXILIARY BUILDINGS
Commercial Residential - Multiperil
n/a
Commercial Non-Residential
Multiperil
Commercial Residential - Wind
Only
added
n/a
Auxiliary Buildings will no longer be written as special class items, no change - current rule in CRM
must be listed as buildings. Stand alone Aux buildings no longer
acceptable, must write primary building, unless condo or
homeowner association; rating will be based on primary or
adjacent building1
not applicable to CNRM.
Auxiliary buildings such as Clubhouses, Enclosed Garages,
Poolhouses, etc will be eligible for commercial residential
mitigation credits.
no change, currently eligible for credits in
CRM
ELIGIBLE RISKS
ADDED: Fraterinities / Sororities / Dormitories / Convents and
added
Monasteries.
ADDED: Boarding and Rooming houses were added to CNRM will not applicable to CRM
use hotel/motel rates
Commercial Non-Residential
Wind Only
Impacts
ease of use
no impact to policyholders
aux buildings currently allowed rule exists, rating rule updated
stand alone or special class.
consistency across products
fewer than 5000 buildings will be
rewritten to the correct classification
not applicable to CNRM. OIR
mitigation credits are for
Residential structures.
allows credits for the Fully
enclosed Auxilary buildings.
not applicable to CNRW. OIR
mitigation credits are for
Residential structures.
consistency across products/correct
rating methodology
approximately 2000 buildings
not applicable in CNRM
added
not applicable in CNRW
should be included
unable to estimate impact
added
not applicable to CRW
no change to the current rule
consistency across programs
40 risks could move from wind to
multi peril
no change - still ineligible under no change - current rule
current rules
consistency across programs
unable to estimate impact
better exposure management and
consistency across programs
unable to estimate - identify at
renewal
no estimate - identify through normal
renewal underwriting
Risks with more than 25% transient occupancy or mercantile
occupancy
no change - still ineligible under current
rules
amends rule for consistent
application that risks that are
not eligible for residential are
eligible for non-residential
INELIGIBLE RISKS
Risks with no roof updates or HVAC updates in the last 30 years
added
added roof updates; HVAC
added roof updates. HVAC
updates criteria exists
updates not applicable
criteria exists/special class not added
eligible
Buildings that are not fully enclosed eligible only if qualify as
Special Class item
added
Excessive debris around building
added
no change to current rule
added
Bldgs or BPP located in a building not on a permanent foundation added
no change to current rule
added
Bldgs or BPP located in a mobile or temporary building
added
no change to current rule
added
Bldgs or BPP in a building completed on or after January 1, 2006
located in a 30–year erosion inspection zone as provided in Florida
Statutes Chapter 161
Risks that have incurred three or more losses, excluding acts of
God, from a peril covered under this program in the thirty-six
month period immediately preceding the effective date or
subsequent renewal
added
no change to current rule
added
added more specific wording; 2013 manual
indicates: "Risks that have incurred 3 or
more losses from a peril covered under this
program in the last 36 consecutive months,
excluding windstorm or hail"
risks that have incurred 3 or
not applicable to WIND
more losses from a peril
covered under this program in
the last 36 consecutive months,
excluding windstorm or hail
Page 1 of 3
n/a
Rationale
added roof updates. HVAC
updates not applicable
added ; however, only pools
and masonry fences qualify for
Special Class
added
consistency across programs/better
underwriting
not adopted for this manual due consistency across programs/better
to the MH exposure
underwriting
not adopted for this manual due consistency across programs/better
to the MH exposure
underwriting
added
consistency across programs/better
underwriting
no estimate - identify through normal
renewal underwriting
no estimate - identify through normal
renewal underwriting
no estimate - identify through normal
renewal underwriting
no estimate - identify through normal
renewal underwriting
not applicable to WIND
no estimate - identify through normal
renewal underwriting
added more specific wording to clearly
state our intent
CORE Recommendation
Commercial Residential - Multiperil
Commercial Non-Residential
Multiperil
Commercial Residential - Wind
Only
Commercial Non-Residential
Wind Only
Rationale
Impacts
Bldgs or BPP located in PC 10
Bldgs/BPP w/o adequate smoke detection devices
added
added
no change to current rule
no change to current rule
not applicable to WIND
not applicable to WIND
not applicable to WIND
not applicable to WIND
consistency across Multiperil programs
consistency across Multiperil programs
1 policy impacted in CRM
no estimate - identify at renewal
Buildings or Business Personal Property located in a building with
extra-hazardous adjoining exposures
Newly constructed or completely renovated building must be at
least 60% occupied within 90 days
A building under construction, or Business Personal Property
located in a building under construction
Buildings or Business Personal Property located in a building that
has been condemned
Risks for which any applicant, owner, or officer has ever been
convicted of arson or fraud
no change to current rule
no change to current rule
added
added
no estimate - identify at renewal
no change to current rule
added
added
no change to current rule
this rule was amended from
31% to 60%.
no change to current rule
added
n/a
no change to current rule
no change to current rule
added
added
currently for applicant only; officer and
owner have been added - removing 5 year
limitation
currently for applicant only;
officer and owner have been
added to the CORE rule
added
added
consistency across programs/better
underwriting
consistency across programs/better
underwriting
consistency across programs/better
underwriting
consistency across programs/better
underwriting
consistency across programs/better
underwriting
this rule was amended from
31% to 60%.
added
added
consistency across programs/better
underwriting
no estimate - identify at renewal
added
added
consistency across programs/better
underwriting
no estimate - identify at renewal
no change to current rule
added
added
consistency across programs/better
underwriting
no estimate - identify at renewal
added
not applicable to WIND
not applicable to WIND
consistency across the Multiperil
programs / better underwriting
no estimate - identify at renewal
optional endorsement with an additional
charge
introducing new rule to CRM
this has always been optional in not applicable to WIND
the CNRM program
introducing new rule to CNRM not applicable to WIND
not applicable to WIND
allow rejection/inspection
TBD
not applicable to WIND
TBD
Sinkhole Premiums
sinkhole premiums will be calculated
separately from other Group II perils
not applicable to WIND
not applicable to WIND
Terrorism Coverage
optional endorsement with an additional
charge
sinkhole premiums will be
calculated separately from
other Group II perils
currently separate
consistency across all commercial
products
sinkhole premiums not subject to the
annual rate cap
not applicable to WIND
not applicable to WIND
more appropriate
no estimate - identify at renewal
already exists
currently no minimum limit
currently no minimum limit
consistency across all commercial
products
fewer than 1000 policies may be
impacted and most can be resolved
by updating information
may be prohibited by glide path approximately 7000 policies
maximum impacted
Vacant buildings or Business Personal Property located in a vacant no change to current rule
building (Any building with an occupancy rate of less than 60% is
considered a vacant building)
Buildings or Business Personal Property located in a building with
evidence of existing damage or disrepair
this criteria is already included in the CRM no change to current rule
program; however, it stipulates that if there
is no intent to repair w/in 90 days then the
risk is not eligible
Risks for which an applicant, owner or officer has had a policy
added
cancelled, non-renewed or voided for material misrepresentation
or
insuranceSinkhole
fraud. questions: as described in current sinkhole
Additional
added
proposal and to be finalized
OPTIONAL COVERAGES
Sinkhole Coverage
Sinkhole Inspections
MINIMUMS
Minimum Building Limit will be $50,000. This does not include
Auxiliary or Special Class items.
Minimum Policywriting Premiums are $500
already exists
current Minimum Policywriting Premium is current Minimum Policywriting current Minimum Policywriting current Minimum Policywriting consistency across all commercial
$100
Premium is $250
Premium is $200
Premium is $200
products
Page 2 of 3
no estimate - identify at renewal
no estimate - identify at renewal
no estimate - identify at renewal
no estimate - identify at renewal
TBD
CORE Recommendation
Commercial Residential - Multiperil
Commercial Non-Residential
Multiperil
Commercial Residential - Wind
Only
Commercial Non-Residential
Wind Only
Rationale
Impacts
Hurricane Season
Amend the Wind Manuals to coincide with official Hurricane
Season - change from 11/1 to 11/30 for wind short rate
not applicable to CRM
not applicable to CNRM
amended
amended
MOBILE HOMES
Mobile homes used as offices/schools will be written up to
$1,000,000 in coverage
not applicable to CRM
not applicable to CNRM
not applicable to CRW
only available in CNRW program
Deductibles and Coinsurance will apply on a policy level basis.
no change to current rule
no change to current rule
change for CRW, deductibles
and coinsurance are currently
chosen at an item level
change for CNRW, deductibles
and coinsurance are currently
chosen at an item level
consistency across all commercial
products
1100 policies impacted; clean up
effort currently underway
COVERAGE CHANGES
Business Personal Property coverage is optional coverage. BPP
stand-alone policy is not available to Building Owners.
no change - current rule
no change - current rule
no change - current rule
consistency in all Citizens products
30 policies
Rating will be split between Condo and Non-Condo for CRW
Tentative Rate form (CP99 93)
no change - current rule in CRM.
introduce
not applicable to CNRM
no change to the current rule
change - currently in CRW,
Business Personal Property
coverage is offered without
insuring the primary building
adopting
not applicable to CRW
not applicable to CNRW
not applicable to CNRW
no estimate - identify at renewal
no impact to policyholders
CP 10 55 - Vandalism Exclusion - withdraw form as it is no longer
used by Citizens
CP 14 50 - Radio or Television Antennas - Withdraw form as it is
not widely used. One policy is impacted.
currently, there is an option to attach this
form to the policy
currently, there is an option to attach this
form to the policy.
not applicable to CNRM
not applicable to CRW
not applicable to CNRW
OIR requirement - no rate impact
consistency among the Multiperil
programs
citizens no longer offers this exclusion
not applicable to CNRM
not applicable to CRW
not applicable to CNRW
citizens no longer offers this coverage
1 policy impacted
Eliminate First Loss Rating in Residential Wind
not applicable for CRM
not applicable for CNRM
selecting coverage less than the not applicable for CNRW
Replacement cost is no longer
permitted
consistency between the Residential
programs / better underwriting
9 CRW policies impacted
applicable
applicable
applicable
one application requiring
applicant/agent signature; consolidated
not applicable to CNRW
ability to record the premiums collected no rate impact
against the premiums paid for certain
perils (Sinkhole)
extend penalty time frame to match
official hurricane season
minimal impact
One (1) policy with 8 residential MH
items is impacted. One (1) policy
impacted in CNRW.
DEDUCTIBLES / COINSURANCE
*Discontinue the Citizens specific applications, supplemental
applicable
applications, Part B applications, etc., since Guidewire will capture
the pertinent information and print out on one Citizens application
for the insured and agent to sign.
RATING STRUCTURE CHANGES
Group II perils will be split out in the rating worksheet for the Multi group II perils will now have their rating
group II perils will now have
not applicable to CRW
Peril program
displayed as: Group II AOP, Group II Other their rating displayed as: Group
Wind/Hail, Group II Hurricane, and Group II II AOP, Group II Sinkhole.
Sinkhole
Page 3 of 3
6 policies impacted