Updated info on Citizens commissions

The Citizens Property Insurance Corp. Board of Governors agreed to change the amount of commissions it paid to agents in May 2005, but Florida insurance agents complain that the new commissions are not being paid.

Citizens filed its revised commission schedules with the Florida Office of Insurance Regulation in May. OIR requested that the filing be withdrawn and resubmitted with the next Citizens base rate filing.

The Citizens Board, at its Nov. 17 meeting, approved the implementation of a Top 20 base rate filing for personal residential business (wind-only and multi-peril), including the revised commission rates for both personal and commercial lines. That filing will be implemented and notice provided to OIR immediately after its approval by the Board.

Prior to the Board’s adoption of the rate increase, Citizens released the following revised commission rates:

New and renewal personal residential and wind-only accounts will be implemented March 1, 2006, so beginning Jan. 1, renewals effective March 1 and later will be generated at the new premium and commission rates.

New and renewal commercial multi-peril, commercial and commercial residential wind only accounts will be implemented March 1, 2006. On Jan. 1, renewals effective March 1 will be generated at the new commission rate.

New and renewal personal residential multi-peril will be implemented April 1, 2006, so on Feb. 1, renewals effective April 1 and later will be generated at the new premium and commission rates.

The rates, approved May 3, 2005, were: Personal lines multi-peril new commission, 7 percent, old commission was 5.8 percent; personal lines, wind-only new commission 10 percent, old commission was 8.9 percent; commercial residential new commission 12 percent, old commission was 10 percent; and commercial, wind-only new commission is 12 percent, old commission was 10 percent.