A homeowner could not find coverage on the open market and looked to the residual market for coverage. What Joint Underwriting Association would handle this risk?

• A. Citizens
• B. The Florida Residential Property and Casualty Joint Underwriting Association
• C. The Florida Workers Compensation Joint Underwriting Association
• D. The Florida Automobile Joint Underwriting Association

Answer: (A)

When a property risk can’t be placed in the private market, Florida relies on a residual market mechanism. For homeowners, the entity that serves as the insurer of last resort is Citizens Property Insurance Corporation. It was created specifically to provide property insurance to Florida homeowners when coverage isn’t available from private carriers. Joint Underwriting Associations exist for other lines (such as automobile or workers’ compensation), but they aren’t the standard route for insuring typical homeowners’ property risks. So, in this situation, Citizens would handle the homeowner’s residual-market coverage.