1. Robin Smith Westcott January 16, 2013 Tallahassee, Florida Senate Banking and Insurance Committee

2.  Avoidance (eliminate, withdraw from or not become involved)  Reduction (optimize – mitigate)  Retention (accept and budget)  Insurance (usually most expensive option)

4. Sources: 1) Citizens archived policy reports, 2) 1996 Legislative Working Group on Residual Property Insurance Markets (Coastal RPCJUA plus FWUA policies assumed equivalent to current Coastal Account policies). All data is as of 7/31 of each year and includes all policy types (wind, ex-wind and commercial).

6. Broward County Built 1978 Square Foot 1475 2001 Purchase Price $163,000 2003 Purchase Price $216,000 2008 Purchase Price $185,000 2012 Market Value $163,840 Insurance Coverage A Limit $224,600 - Premium $2,420

7. Based on Citizens' initially filed non-sinkhole uncapped rate indications for OIR filing # 12-13992 as provided by Citizens. Assumes a territory's rates will be actuarially sound in (year) if its current indicated rate change is less than: +10.0% (2013), +21.0% (2014), +33.1% (2015), (etc.) Assumes: 1) rates for each territory will follow 10.0% "glide path" until actuarial soundness is reached, 2) future premium trends will offset loss trends, 3) no change in future expense, profit, contingency and risk loads.

8. Based on OIR's revised non-sinkhole uncapped rate indications for OIR filing # 12-13992 as provided by Citizens. Assumes a territory's rates will be actuarially sound in (year) if its current indicated rate change is less than: +10.0% (2013), +21.0% (2014), +33.1% (2015), (etc.) Assumes: 1) rates for each territory will follow 10.0% "glide path" until actuarial soundness is reached, 2) future premium trends will offset loss trends, 3) no change in future expense, profit, contingency and risk loads.

9.  75% of homes in Coastal Account do not have hurricane impact opening protection.  228,423 unprotected homes

12.  For every $1.00 spent on reinsurance and Cat bonds the expected recovery is.16 cents.  For every $1.00 spent on mitigation the expected loss savings is $2.00.

13. OIRDEM Public Model Office of Insurance Regulation Division of Emergency Management

14. Hurricane Risk Sinkhole Risk Mitigation Features Insurable Values Rating Information

15. January 16, 2013 Tallahassee, Florida Senate Banking and Insurance Committee