FNIP Gets OIR Approval on Citizens' Policies

Federated National Insurance Company, a wholly-owned subsidiary of 21st Century Holding Company, an insurance holding company, has received approval from the Florida Office of Insurance Regulation (OIR) to take out (assume) up to 30,000 homeowner insurance policies in the state of Florida from Citizens Property Insurance Corporation (Citizens) over the next 18 months, with the removal of no more than 15,000 of these policies in the initial assumption in January 2009.

Any policies selected will meet Federated National's underwriting guidelines and are subject to competition with other carriers and agent approval. Selected policyholders will have 30 days following the date of assumption within which they may elect to remain with Citizens. Any future assumptions of homeowner policies from Citizens provided for by this current consent will be subject to review and approval by the OIR.

Additionally, the OIR has approved Federated National's application to expand its certificate of authority to include Fire as an authorized line of business. Federated National intends to use this authority to write commercial residential property risks in Florida on a voluntary basis only and no longer intends to assume these risks from Citizens.

It is anticipated, pending regulatory rate approval, that Federated National will begin issuing commercial residential property policies in the second quarter of 2009.