Citizens Insurance Announces Clearinghouse is Ready to Launch


Citizens Launches Clearinghouse

TALLAHASSEE, FL - In a continuing effort to provide homeowners with more and better
choices and return to its role as Florida's insurer of last resort, Citizens Property Insurance
Corporation will launch its much anticipated Property Insurance Clearinghouse.

On Monday, four private companies will begin offering policies to new applicants for
homeowners coverage as part of Citizens' measured rollout of the clearinghouse system
authorized by state lawmakers in 2013. Over the next five months, additional participating
private-market insurers will be added to the list of approved-Florida companies able to offer
property insurance to Citizens applicants.

The Property Insurance Clearinghouse, which will help match homeowners with private
companies willing to write comparable polices at competitive rates, is the latest effort by the
state-backed insurer to reduce its exposure and the risk of assessments for all Floridians.
Policyholders who find private coverage through the clearinghouse also will benefit by not being
subject to Citizens policyholder assessments that can be as high as 45 percent in a single year.

"The clearinghouse offers dual benefits of helping homeowners find better coverage at
comparable rates and reducing Citizens' exposure," said Chris Gardner, Chairman of Citizens
Board of Governors. "We're excited by the promise this initiative holds for helping to lower
assessment risks for all Floridians."

Starting Monday, when a homeowner seeks new homeowners coverage with Citizens, their
Citizens-appointed agent will enter their property information into the clearinghouse, which will
seek offers of coverage from participating private-market companies. If a participating company
offers a policy at a premium that is within 15 percent of the Citizens premium for comparable
coverage, the applicant will be ineligible for Citizens coverage. The homeowner will be given a
list of all private offers extended through the clearinghouse, and, in most cases, their agent will
be able to bind coverage with the company of their choosing.

In an effort to ensure a smooth rollout, the clearinghouse initially will focus on new homeowners
(HO-3) policies. By mid 2014, current Citizens residential customers also should have their
policies shopped through the clearinghouse prior to renewal. Renewal policyholders will only be
ineligible to renew with Citizens if an offer for comparable coverage is received with a premium
that is equal to or less than their Citizens renewal premium.

Monday's launch is the result of months of preparation and cooperation between Citizens,
private carriers and Bolt Solutions, Inc., which is providing the clearinghouse software platform.

"I want to thank all those involved in this monumental effort," said Barry Gilway, Citizens
President, CEO and Executive Director. "I'm confident their hard work will benefit consumers,
Citizens and the people of Florida."

A media kit and short overview video, which demonstrates how the clearinghouse will work, are
available on Citizens' Media Resources page. Additional information about the Property
Insurance Clearinghouse can be found on the Citizens website. https://www.citizensfla.com/policyholder/clearinghouse/

Contact: Michael Peltier
(850) 513-3774

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