Discontinuation of Citizens Assessment Fee (CPIC)
Effective July 1, 2015 the Citizens Assessment (CPIC) Fee will be discontinued for all new business. Endorsements where the policy inception date is prior to July 1st will still be assessed. You can find details as released by the FSLSO here.
The assessment fee originated to satisfy bonds that were issued to help cover the losses incurred by state-run Citizens Property Insurance. The 8 named storms of the 2004-2005 hurricane season caused a deficit of more than 1.7 Billion dollars. The assessment originally began in 2007 and was scheduled to be imposed for 10 years ending in 2017.
According to a press release from Citizens, the have received sufficient funds to eliminate the assessment 2 years early.
Citing growth in its assessment base, which is comprised of all Florida property insurance policyholders, Citizens Chief Financial Officer Jennifer Montero told board members Citizens is expected to have sufficient resources in place by June 2015 to satisfy the bond’s balance. The assessments originally were scheduled to be collected through June 2017.