(rfp) for claims legal services - Citizens Property Insurance

RFP NO.: 10-0067REQUEST FOR PROPOSAL (RFP)FORCLAIMS LEGAL SERVICESRefer ALL Inquiries to Procurement OfficerKathy King, Procurement OfficerPurchasing DepartmentCitizens Property Insurance Corporation2101 Maryland CircleTallahassee, Florida 32303(850) 521-8135 Phone or (850) 575-0936 FacsimileE-Mail:bids@citizensfla.comTABLE OF CONTENTSSECTION 1 – INTRODUCTORY MATERIAL1.1 STATEMENT OF PURPOSE1.2 CITIZENS’ BACKGROUND1.3 CALENDAR OF EVENTS1.4 CONTACT INFORMATION1.5 NO CONTACT OR LOBBYINGSECTION 2 – PROCUREMENT INSTRUCTIONS2.1 DEFINITIONS – SOLICITATION SPECIFIC2.2 INQUIRIES AND QUESTIONS2.3 SOLICITATION DOCUMENTS AND ADDENDUMS2.4 ENVIRONMENTAL POLICY2.5 COOPERATIVE PURCHASING2.6 SUBMISSION OF PROPOSAL2.7 VENDOR’S REPRESENTATION AND AUTHORIZATION2.8 MISREPRESENTATION2.9 APPEAL PROCESS2.10 FORMAT AND CONTENTS

2.11 EXCEPTIONS OR REQUESTED MODIFICATIONS2.12 CORPORATE CHANGE2.13 TIE BREAKING PROCESS2.14 ACCEPTANCE / REJECTION2.15 REVIEW AND EVALUATION PROCESS2.16 ELECTRONIC POSTING OF BOARD DECISIONSECTION 3 – SCOPE OF SERVICES3.1 PROJECT BACKGROUND3.2 CITIZENS’ GUIDELINES FOR LEGAL SERVICES3.3 OUTSIDE COUNSEL LEGAL SERVICES EVALUATION3.4 CONTRACTED SERVICESATTACHMENTSATTACHMENT “A” – FEE SCHEDULESATTACHMENT “B” – LITIGATION, CLAIMS OR REGULATORY ACTION FORMATTACHMENT “C” – CLAIMS LEGAL SERVICE ZONESATTACHMENT “D” – SERVICE AREA REPRESENTATIONATTACHMENT “E” – LITIGATION EXPERIENCEATTACHMENT “F” – REFERENCE REQUESTATTACHMENT “G” – CITIZENS’ GUIDELINES FOR LEGAL SERVICESATTACHMENT “H” – OUTSIDE COUNSEL LEGAL SERVICES EVALUATIONATTACHMENT “I” – CLAIMS LEGAL SERVICES CONTRACT (DRAFT)REQUIRED STANDARD FORMS AND DOCUMENTS: The below list of standarddocuments and forms also pertain to this competitive solicitation and are posted onCitizens’ website in a folder titled “Standard Purchasing Documents” for review anddownload. It is the Vendor’s responsibility to review and submit all applicable forms withyour Proposal. Citizens’ website address ishttp://www.citizensfla.com/about/purchasing-solicitations.cfm.Standard Document No.: 01, Vendor Conflict of Interest Disclosure Form (Form No.:501b)Standard Document No.: 03, Corporate Background FormStandard Document No.: 05, Citizens’ Travel PolicyStandard Document No.: 08, FSBE Declaration of Qualification FormStandard Document No.: 09, Code of EthicsStandard Document No.: 10, Citizens’ Confidentiality and Non-Disclosure AgreementFormSECTION 1INTRODUCTORY MATERIAL1.1 STATEMENT OF PURPOSE: Citizens Property Insurance Corporation(Citizens) is seeking Proposals from Vendors capable of providing Claims LegalServices in four (4) Service Areas. These Service Areas include (1) First PartyRFP No.: 10-0067 September 15, 2010Section 1 –Introductory Material Page 2 of 68

Property, (2) Third Party Liability, (3) Appeals and (4) Subrogation. A Vendormay submit a Proposal for any one (1), any combination, or all of the four (4)Service Areas listed above. Additional points will not be awarded for multipleService Areas.• First Party Property insurance matters typically involve pre-suit coverageanalysis and Examinations Under Oath, as well as litigation of breach ofcontract issues related to windstorm, contractual appraisal, sinkhole, fire /arson, water, tile and related coverage issues. Selected Vendors mayalso be asked to provide additional Claims Legal Services as needed;• Third Party Liability Matters typically involve pre-suit liability / coverageanalysis and litigation defense of Citizens’ insureds. Selected Vendors forthis category may also be asked to provide additional Citizens ClaimsLegal Services as needed;• Appeals typically involve the representation of Citizens and / or its’ insuredin Florida’s District Court of Appeal and the Florida Supreme Court ; and• Subrogation services typically involve pre-suit evaluation, litigation,appeals arising out of subrogation litigation, and the collection of moniesor material in matters dealing with individual and / or organizationaldebtors of Citizens.NOTE:• This solicitation applies only to claims-related representation arising out ofa Contract for insurance issued by Citizens;• Vendors currently providing Claims Legal Services to Citizens will have tosubmit a Proposal to be considered to provide future Claims LegalServices;• Vendors providing other types of legal services to Citizens (non-Claimsrelated assignments) are not contemplated by this solicitation; howeverany such Vendor will need to respond to this solicitation if it wants to beconsidered to provide Citizens Claims Legal Services; and• Vendors currently handling Citizens Claims Legal Services assignmentswill continue to provide services for these specific assignments, but willnot be eligible to receive additional assignments unless awarded aContract based upon this solicitation process.The contract term is anticipated to be for five (5) years, and at the discretion ofCitizens, have two (2) 1-year renewal terms.Citizens’ intent is to partner with a Vendor who can provide services, as indicatedwithin this document and any addenda that may be issued via Citizens’ Websitelocated at (https://www.citizensfla.com/about/purchasing-solicitations.cfm). EachVendor must familiarize itself with the general requirements before submitting aresponse.It is the Vendor’s obligation to check Citizens’ Website to ensure that anyRFP No.: 10-0067 September 15, 2010Section 1 –Introductory Material Page 3 of 68

and all addenda are incorporated into its solicitation Proposal.1.2 CITIZENS’ BACKGROUND: In 2002, the Florida Legislature created CitizensProperty Insurance Corporation (Citizens), a not-for-profit alternative insurer,whose public purpose is to provide insurance to, and serve the needs of,property owners who cannot find coverage in the private insurance market.Citizens is governed by Section 627.351(6) Florida Statutes and operatespursuant to a Plan of Operation approved by the Financial Services Commissionof the State of Florida. Citizens operates under the supervision of a Board ofGovernors comprised of eight (8) appointed members. Additional information isavailable at Citizens’ website located at:http://www.citizensfla.com/about/purchasing-solicitations.cfm.1.3 CALENDAR OF EVENTS: Listed below are the important dates / times by whichthe actions are anticipated to be taken or completed:September 15, 2010October 1, 2010October 15, 2010CALENDAR OF EVENTSDATE: TIME: ACTIONS:5:00:00 PM ETRelease SolicitationLast Day for Submission ofWritten Questions andExceptions to SolicitationAnswers to QuestionsPosted on Citizens’ WebsiteNovember 1, 2010 2:00:00 PM ET Proposals Due1.4 CONTACT INFORMATION: Questions related to the procurement should beaddressed to:Kathy King, Procurement OfficerPurchasing DepartmentCitizens Property Insurance Corporation2101 Maryland CircleTallahassee, Florida 32303(850) 521-8135 Phone or (850) 575-0936 FacsimileE-Mail: bids@citizensfla.com1.5 NO CONTACT OR LOBBYING: From the date this solicitation is issued until anotice of recommended award, rejection of all Proposals or other decision ismade, no contact related to the solicitation will be allowed between a Vendor andany other party for the purpose of influencing the award, including any member ofthe Board of Governors or Citizens’ staff, with the exception of the ProcurementOfficer or his / her designee. Any unauthorized contact may disqualify theVendor from further consideration.RFP No.: 10-0067 September 15, 2010Section 1 –Introductory Material Page 4 of 68

SECTION 2PROCUREMENT INSTRUCTIONSCONTENTS2.1 DEFINITIONS – SOLICITATION SPECIFIC2.2 INQUIRIES AND QUESTIONS2.3 SOLICITATION DOCUMENTS AND ADDENDUMS2.4 ENVIRONMENTAL POLICY2.5 COOPERATIVE PURCHASING2.6 SUBMISSION OF PROPOSAL2.7 VENDOR’S REPRESENTATION AND AUTHORIZATION2.8 MISREPRESENTATION2.9 APPEAL PROCESS2.10 FORMAT AND CONTENTS2.11 EXCEPTIONS OR REQUESTED MODIFICATIONS2.12 CORPORATE CHANGE2.13 TIE BREAKING PROCESS2.14 ACCEPTANCE / REJECTION2.15 REVIEW AND EVALUATION PROCESS2.16 ELECTRONIC POSTING OF BOARD DECISION2.1 DEFINITIONS – SOLICITATION SPECIFIC:• “Appeals” – means matters within the jurisdiction of Florida’s five (5)District Courts of Appeal and Florida’s Supreme Court; for the purposes ofthis solicitation, appeals arising out of Subrogation Matters are notincluded in the “Appeals” Service Area;• “Associates” – means an attorney that does not have a shareholder-typeinterest in the firm;• “Board Certification” – means certification by the Florida Bar in one (1) of24 designated areas of practice;• “Conflict Check” – means a process by which an attorney ensures his / herrepresentation of one client is not adverse to another client;• “Coverage Analysis” – means a legal opinion regarding the benefitsavailable under the insurance policy, and the application of facts and lawto the policy language;• “EUOs” – means Examination Under Oath;• “File Handler” – means Citizens representative handling matters;• “First Party Litigation” – means litigation between an insured and theinsurance carrier;• “First Party Property Matters” – means matters arising from a contract ofinsurance between an insured and the insurance carrier;RFP No.: 10-0067 September 15, 2010Section 2 – Procurement Instructions Page 5 of 68

• “LEDES Codes” – means Legal Electronic Data Exchange StandardCodes;• “Matters” – means assignments requiring legal representation;• “Paralegal” – means a person with legal skills, who is not an attorney, andwho works under the supervision of an attorney in performing varioustasks relating to the practice of law;• “Partner” – means an attorney that has a shareholder-type interest in thefirm; typically associated with a greater level of experience than anAssociate attorney;• “Service Areas” – means First Party Property, Third Party Liability,Appeals and Subrogation;• “Service Categories” – means General Matters, Complex Matters, andAppeals;• “SIU” – means Citizens Special Investigative Unit;• “SIU Investigation” – means Citizens Special Investigative Unit’sinvestigation regarding a claim;• “Subrogation” – means the process by which the insurance carrier stands“in the shoes” of an insured to seek reimbursement from another party thatmay be liable for damages paid by the insurance carrier; for the purposesof this solicitation, appeals arising out of Subrogation litigation areincluded in the “Subrogation Matters” Service Area;• “Third Party Litigation” – means litigation between an insured and a partyunrelated to the contract of insurance;• “Third Party Liability Matters” – means matters in which a party unrelatedto the contract of insurance makes a claim for damages against theinsured; and• “UTBMS Codes” – means Uniform Task Based Management System.2.2 INQUIRIES AND QUESTIONS: Vendor(s) shall submit all questions regardingthis solicitation to the Procurement Officer identified in Section 1.4, ContactInformation. Questions shall be RECEIVED NO LATER THAN the time and datereflected in Section 1.3, Calendar of Events. E-mails or other written inquiriesonly are permitted. It is the responsibility of the Vendor to confirm receipt of thequestions. However, Citizens in its sole discretion reserves the right to answerany questions received after the deadline.Questions and answers will be posted on Citizens’ website in accordance withSection 1.3, Calendar of Events.2.3 SOLICITATION DOCUMENTS AND ADDENDUMS: Solicitation documents andall addendums to the solicitation will be posted on Citizens’ website. It is theVendor’s obligation to monitor Citizens’ Website to review addendums.RFP No.: 10-0067 September 15, 2010Section 2 – Procurement Instructions Page 6 of 68

2.4 ENVIRONMENTAL POLICY: Citizens has implemented a Go Green Policy topromote sustainability. In its effort to do this, Citizens is identifying companiesthat have implemented policies that encourage environmental stewardship.Vendors are encouraged to identify green standards such as EnergyStar, GreenSeal, and LEED, among others, within their Proposal.2.5 COOPERATIVE PURCHASING: With the consent of the awarded Vendor(s),this Contract, if awarded, may be used by other governmental entities (includingfederal agencies) within and outside the State of Florida. The AwardedVendor(s) agree to make the same terms, and price, exclusive of freight andtransportation fees, if applicable, available to other such governmental entities.Citizens will in no way whatsoever incur any liability in relations to specifications,scope of work, delivery, payment, or any other aspect of purchases by suchagencies.2.6 SUBMISSION OF PROPOSAL: The purpose of the Proposal is to demonstratea Vendor’s qualifications, competence and capacity to undertake services inconformity with the requirements of this solicitation. The Proposal shoulddemonstrate the qualifications of the Vendor and of the particular staff to beassigned to this engagement.The prospective Vendor hereby certifies, by submission of a Proposal to thissolicitation, acceptance of the requirements, terms and conditions of thissolicitation and all appendices and any addendum released hereto. Anyexception(s) to this solicitation (terms, conditions, etc) shall be submittedin accordance with Section 2.11, Exceptions or Requested Modifications.The submission of a Proposal to this solicitation constitutes an acknowledgementby the Vendor that Citizens is not a state agency for purposes of Chapter 287,Florida Statutes, and that the procurement policies and procedures adopted byCitizens pursuant to Section 7(A)(12) of its Plan of Operation prescribe the soleand exclusive remedy of an unsuccessful Vendor.The Vendor shall submit:• A total of two (2) hard copies of their Proposal - one (1) originally signedProposal and one (1) additional copy;• One (1) electronic version of the Proposal in the form of a compact disk(CD). (The CD should be exactly identical to what is on the originalhardcopy Proposal); and• One (1) redacted version of the Proposal in the form of a compact disk(CD). This CD should be labeled as a redacted copy. This will be usedfor any Public Record Requests received after award. If no redactedcopy is submitted, the original will be considered approved forrelease in accordance with Citizens’ Public Records Process.All Proposals should be in a sealed package clearly marked “RFP No.: 10-0067,Claims Legal Services”.RFP No.: 10-0067 September 15, 2010Section 2 – Procurement Instructions Page 7 of 68

PROPOSALS SHALL BE RECEIVED AT CITIZENS PROPERTY INSURANCECORPORATION, 2101 MARYLAND CIRCLE, TALLAHASSEE, FLORIDA32303, ON OR BEFORE THE DUE DATE AND TIME AS SPECIFIED INSECTION 1.3, CALENDAR OF EVENTS OR THE BID WILL BE REJECTED ASNONRESPONSIVE.2.7 VENDOR’S REPRESENTATION AND AUTHORIZATION: The prospectiveVendor hereby certifies, by submission of a Proposal to this solicitation,acceptance of the requirements, terms and conditions of this solicitation and allappendices and any addendum released hereto. Any exception(s) to thissolicitation (terms, conditions, etc) shall be submitted in accordance with Section2.11, Exceptions or Requested Modifications.2.8 MISREPRESENTATION: All information provided and representations made bythe Vendor are material and important and will be relied upon by Citizens inawarding the contract. Any intentional or negligent misstatement will be treatedas a fraudulent inducement to award Vendor the contract, and a fraudulentconcealment from Citizens of the true facts relating to submission of theProposal. A misrepresentation will be punishable under law, including, but notlimited to, Chapter 817 Florida Statutes. Furthermore, any misrepresentation willbe immediate grounds for termination of any contract related to this solicitationand said Vendor will not be able to participate in future solicitations or otherbusiness opportunities with Citizens for the duration of this contract term,including renewal period.2.9 APPEAL PROCESS: Appeals concerning Board action approving theprocurement of services under this solicitation must be made in accordance withSection 25 of Citizens’ Plan of Operation. The Board action shall be final unlesswithin 21 days from the Board’s approval of the procurement of services underthis solicitation, Vendor delivers by certified mail, a request for relief or redress tothe Executive Director of Citizens. The appeal must be directed to the followingaddress:Citizens Property Insurance CorporationAttention: Scott Wallace, President / CEO101 North Monroe Street, Suite 1000Tallahassee, Florida 32301Questions to the Procurement Officer do not constitute an appeal under Section25 of the Plan of Operation.2.10 FORMAT AND CONTENTS: This section prescribes the format in which theProposals are to be submitted. There is no intent to limit the content of theProposals. Additional information deemed appropriate by the Vendor may beincluded, but are required to be placed within the relevant section. Additionaltabs beyond those designated in this section will not be evaluated.Citizens is under no obligation to look for responsive information contained inincorrect tabbed sections. If responsive information is also contained in otherRFP No.: 10-0067 September 15, 2010Section 2 – Procurement Instructions Page 8 of 68

sections, Vendors should specifically reference the tabbed section andcorresponding page number(s) that responsive information and documentationcan be found.All Proposals should contain the sections outlined below. For all Proposalssubmitted electronically, Vendor shall provide numbered tab sheets clearlyseparating and identifying each tabbed section as indicated below. Citizenscannot be held responsible for locating any information that is not named andorganized according to the Procurement Instructions.The following paragraphs contain instructions that describe the required formatfor Proposals:2.10.1 TAB 1 – REQUIRED FORMS AND DOCUMENTS: The Vendor shallprovide behind Tab 1 the following forms and documents, completed:• Electronic version of the Proposal in the form of a compact disk(CD). (The CD should be exactly identical to what is on theoriginal hardcopy Proposal);• Electronic redacted version of the Proposal in the form of acompact disk (CD). This CD should be labeled as a redacted copy.This will be used for any Public Record Requests received afteraward. If no redacted copy is submitted, the original will beconsidered approved for release in accordance with Citizens’Public Records Process;• Standard Document No.: 01, Vendor Conflict of Interest DisclosureForm (Form No.: 501b);• Evidence of malpractice insurance (declaration page of policy);• Evidence that attorneys are licensed by the Florida Bar (copy of theweb page from the Florida Bar Website);• Attachment “A”, Fee Schedules;• Attachment “B”, Litigation, Claims or Regulatory Action Form; and• Attachment “I”, Claims Legal Services Contract.If applicable, Vendor should provide the following:• Exceptions or Requested Modifications: Only exceptions approvedby Citizens during the Vendor Question and Answer phase will beconsidered. See Section 2.11, Exceptions or RequestedModifications for further details; and• Corporate Change: See Section 2.12, Corporate Change for furtherdetails.2.10.2 TAB 2 – FEE SCHEDULES: The following provides information regardingthe fee schedule to be utilized for these services. Behind Tab 2 respondwith acceptance of Citizens determined rates or provide your own reducedrates (as specified in Attachment “A”, Fee Schedules, Section 1, FeeSchedules and Section 2, Vendor’s Contact Information):RFP No.: 10-0067 September 15, 2010Section 2 – Procurement Instructions Page 9 of 68

A) Assignment Process: The assignment of individual matters will bemade by the Citizens’ file handler responsible for the matter onbehalf of Citizens, or other procedure as may be adopted byCitizens, at its discretion. Assignments will be made by telephone,email, fax or U.S. mail. Acceptance of the assignment by theVendor is confirmed and communicated to Citizens as described inAttachment “G”, Citizens’ Guidelines for Legal Services. All Firstand Third Party hourly rate assignments will be paid by Citizens atthe General Matter rate unless Citizens Claims Management orClaims Legal staff authorizes in writing, the Complex Matter hourlyrate. Appeals and Special Project hourly rate assignments must beconfirmed in writing by Citizens Claims Management or ClaimsLegal Staff. Assignments for Flat Fee Examinations Under Oath(EUO) will be made by the Citizens’ file handler responsible for thematter. Assignments for Contingency Fee Subrogation Matters willbe made by subrogation staff or management.B) Maximum Hourly Rate Fee Schedule: The Hourly Rate Scheduleapplies to the following Service Areas:• First Party Property;• Third Party Liability; and• Appeals.Citizens is committed to contracting with law firms that demonstratethe ability to provide high quality legal representation at a price thataccurately reflects market conditions and Citizens’ fiscalresponsibilities as a government created entity.The maximum hourly rate Citizens will pay is listed in Attachment“A”, Fee Schedule, Table 1. Citizens will disqualify without furtherreview or evaluation any Proposal that includes a higher rate.However, a responding Vendor may offer reduced hourly rates forService Categories: General Matters and Appeals for Partners,Associates, and Paralegals. Blended rates across ServiceCategories are unacceptable and will disqualify a response withoutfurther review or evaluation. Vendors offering a reduced rate forGeneral Matters and / or Appeals will receive additional points inthe scoring process. No additional points will be awarded forreduction of Complex Matters hourly rates.NOTE: A reduction of the Paralegal rate(s) only, will not qualify foradditional scoring points. The reduced hourly rate offered by aselected Vendor is the maximum hourly rate that the Vendor will bepaid during the contract period. A Vendor that wishes to beconsidered for hourly rate assignments must indicate itsacceptance of the hourly rate listed in Attachment “A”, FeeSchedules, Table 1, or provide their reduced rate.RFP No.: 10-0067 September 15, 2010Section 2 – Procurement Instructions Page 10 of 68

C) Examinations Under Oath Flat Fee Agreement: Included in the flatfee agreement are the following services:• Receipt of the assignment and on-going contact bytelephone and email with Citizens until the conclusion of theEUO assignment;• Scheduling and correspondence with the subject(s) of theEUO and / or their representatives(s);• Review of the claim file and related material in advance ofconducting the EUO;• Preparation of a written pre-examination report submitted toCitizens prior to the examination stating the reason for, andgoals of the examination;• Travel costs and travel time to and from the examination;and• Time spent conducting the examination itself; a written, postexamination report summarizing the testimony andrecommendations for future activity.Not included in the flat fee payment is the court reporter fee, cost ofa transcript, or interpreter services if needed.Vendors responding with an offer to provide First Party and / orThird Party legal services also agree to provide EUO services atthe Flat Fee rate. In the event that a claim dispute requiresadditional legal services after the EUO, including a coverageanalysis, it is the intention and preference, but not a requirement, ofCitizens to retain the Vendor engaged for the EUO. Vendorsretained to provide EUO services may also work closely with SIU.Flat fee EUOs include all EUOs arising out of all residential policiesissued by Citizens. EUOs arising out of commercial andcommercial residential policies are not included in the EUO FlatFee agreement. Citizens will compensate EUO services arising outof commercial and commercial residential policies, including EUOsarising out of claims made by insured condominium associations, atthe General or Complex Matter hourly rate, as described above.No additional points will be awarded for Proposals that contain anoffer to conduct EUOs for a rate less than the flat fees describedabove.D) Subrogation Contingency Fee Agreement: Citizens will pay nomore than the maximum percentage of the total amount of theactual recovery as listed in Attachment “A”, Fee Schedules, Table3. However, a Vendor may offer to provide a reduced maximumpercentage in their Proposal. If a Vendor offering a reducedmaximum percentage is selected to provide Subrogation services,RFP No.: 10-0067 September 15, 2010Section 2 – Procurement Instructions Page 11 of 68

the reduced offer will be the maximum percentage paid by Citizensduring the contract period. Offers of a reduced maximumpercentage for pre-suit and litigation matters will receive additionalpoints in the scoring and selection process. No additional pointswill be awarded for a reduced maximum percentage of theSubrogation Appeal rate. A Vendor selected to provideSubrogation services may adjust its contingency fee percentagedownward, at their discretion, at the time of an individual caseassignment.A Vendor that wishes to be considered for SubrogationContingency Fee assignments must indicate its agreement toaccept assignments at the maximum percentage, in Attachment“A”, Fee Schedules, Table 3, or its reduced offer in Attachment “A”,Fee Schedules Table 3A, in the Subrogation Contingency Feeagreement by signing the appropriate area of Attachment “A”, FeeSchedules.2.10.3 TAB 3 – BUSINESS / CORPORATION QUALIFICATIONS: The Vendorshould provide behind Tab 3 the following information (this information willbe scored universally for each Vendor regardless of the number of ServiceAreas for which the Vendor would like to be considered):A) Representative Clients:1. Provide a list of current representative clients;2. Provide the number of years representing and type ofrepresentation for each of the current representative clients;3. Provide Attachment “F”, Reference Request for up to three(3) of the representative clients. Representative clientsshould return the completed form directly to Citizens per theinstructions on the form. If Citizens does not receivereferences by November 1, 2010, which is reflected onAttachment “F”, Reference Request the Vendor will receiveno points for this area; and4. Disciplinary action by Florida Bar against any attorney (copyof web page from the Florida Bar Website).B) Standard Document No.: 03, Corporate Background Form: TheVendor should complete and submit Standard Document No.: 03,Corporate Background Form behind Tab 3.C) Firm Profile: Vendor should provide the following information abouttheir firm:1. Physical location of main office and satellite offices;2. Number of offices in Florida;3. Number of attorneys in each office;4. Number of partners, associates and paralegals;RFP No.: 10-0067 September 15, 2010Section 2 – Procurement Instructions Page 12 of 68

5. The average number of cases per attorney;6. The internal billing requirements for attorney or paralegal;7. Description of how your firm conducts and documentsconflict checks;8. The process, length of time and documentation your firm hasfor document retention;9. Provide the following information as it pertains to legal feebilling:• Billing cycle;• Process for tracking / entering time billing;• Process for review of fee bills for compliance with clientguidelines before submission;• Internal time and billing systems:o Use of automated system; ando LEDES / UTBMS Billing Codes.• Ability to monitor total daily billing by individual attorney;and• Ability to sort billing by client for audit purposes;10. Provide the following information as it pertains to your firmstechnology:• Type of system used for legal research;• Ability to use web-based litigation management for:o Communication;o Uploading documents; ando E-billing.• Internal diary / tickler system for significant due dates andevents;• Routine systems back-up to ensure recovery of data,documents, and information; and• Off-site storage of back-up information.D) Describe your understanding of the nature and purpose of Citizensand its role in the property insurance industry.E) Florida Small Business Enterprises: Citizens supports andencourages diversity and the participation of small and minoritybusiness enterprises in Citizens contracting. Vendors should, ifapplicable, provide a completed Standard Document No.: 08, FSBE/ MBE / FBE Declaration of Qualification Form.2.10.4 TAB 4 – STAFFING / EXPERIENCE LEVEL: The Vendor should providebehind Tab 4 the following information for each Service Area (as noted onAttachment “D”, Service Area Representation for which the Vendor wouldRFP No.: 10-0067 September 15, 2010Section 2 – Procurement Instructions Page 13 of 68

like to be considered (this information will be scored independently foreach of the four (4) Service Areas: (1) First Party Property, (2) Third PartyLiability, (3) Appeals, and (4) Subrogation):A) Provide information on your key personnel (focus on attorneyswithin the firm that will represent Citizens) for each Service Area forwhich the Vendor would like to be considered:1) Level of experience of each attorney for each Service Area;2) Number of attorneys with Board Certification (Identify if certifiedin any of 24 areas of certification recognized by the Florida Bar,especially Civil Trial or Appellate Practice) for each servicearea;3) Number of years with Vendor for each attorney; and4) Number of years practicing in Florida for each attorney in eachService Area.B) Provide the number of trials, appeals and cases resolved favorablyby summary judgment handled by the Vendor. Utilize Attachment“E”, Litigation Experience to provide this information.2.10.5 TAB 5 – DEMONSTRATION OF SERVICES: The Vendor should providebehind Tab 5 the following information:A) Using Attachment “D”, Service Area Representation, indicate eachService Area for which the Vendor would like to be considered. AVendor may apply for more than one Service Area (additionalpoints are not awarded for multiple Service Areas). The four (4)Service Areas are as follows:1) First Party Property;2) Third Party Liability;3) Appeals (excludes Subrogation appeals); and4) Subrogation (including appeals arising out of Subrogationlitigation).NOTE: Refer to Attachment “C”, Claims Legal Service Zones for thegeographical areas in which your firm practices in each Service Area andfor which the firm would like to be considered. Indicate for each ServiceArea the number of attorneys practicing in each geographical area onAttachment “D”, Service Area Representation.2.10.6 TAB 6 – WRITING SAMPLE: The Vendor should provide behind Tab 6the following information (this information will be scored universally foreach Vendor regardless of the number of Service Areas for which theVendor would like to be considered):A) Provide three (3) writing samples for example: a substantivemotion, memo of law, appellate brief, etc; andB) Vendor’s Proposal will be reviewed as an additional writing sample.2.10.7 TAB 7 – PAST CITIZENS EXPERIENCE: Behind Tab 7 the VendorRFP No.: 10-0067 September 15, 2010Section 2 – Procurement Instructions Page 14 of 68

should provide any information Vendor has regarding past experience withCitizens. Citizens will consider past performance of Vendors who haveexperience handling Citizens’ legal services or claims needs (thisinformation will be scored universally for each Vendor regardless of thenumber of Service Areas the Vendor would like to be considered for):A) Type of assignments handled between 2006 – 2010;B) Approximate volume of assignments by year from 2006 – 2010;andC) Total number of years experience performing work for Citizens.2.11 EXCEPTIONS OR REQUESTED MODIFICATIONS: Any and all proposedexceptions and / or modifications to the solicitation requirements Attachment “I”,Claims Legal Services Contract, shall be identified in the form of questionssubmitted to the Procurement Officer identified in Section 1.4, ContactInformation in accordance with Section 2.2, Inquiries and Questions.The prospective Vendor hereby certifies that, by not submitting proposedexception and / or modifications in accordance with Section 2.2, Inquires andQuestions the Vendor waives its right to propose any exceptions and / ormodifications to any solicitation requirements including terms and conditions in,Attachment “I”, Claims Legal Services Contract, during any other phase of thissolicitation.Each proposed change or new requirement shall be submitted and marked as“proposed” or “required”. PLEASE BE AWARE - A notation of “required” on anyproposed change or new requirement, will be considered as mandatory in orderfor Vendor to accept an award, and if Citizens is unable or unwilling to meet thisrequirement, will be a basis for Citizens’ rejection of Vendor’s Proposal at anytime during the evaluation process. Proposed or required changes may berejected by Citizens at its sole discretion.Citizens’ answers to questions which pose requests for exceptions and / ormodifications will indicate whether Citizens accepts or rejects the proposedexception(s) and / or modification(s). For all exceptions and / or modificationswhere Citizens has indicated acceptance, all Vendors, shall be notified by anissuance of an addendum to this solicitation.For all questions submitted to Citizens related to this section, group the questionsas follows:• Group 1 – Exceptions that are required in order for Vendor to submit aResponse. Without approval of the exception, the Vendor will not be ableto submit a Response; and• Group 2 – Requested modifications Vendor is proposing to Citizens thatwill not preclude Vendor from providing a response to this solicitation.2.12 CORPORATE CHANGE: If Vendor is involved in or undergoing a sale,purchase, merger, or other related acquisition (“Change”) that will in any wayRFP No.: 10-0067 September 15, 2010Section 2 – Procurement Instructions Page 15 of 68

alter the Vendor’s legal entity, name, structure, financial status or businessoperations, Vendor shall submit behind Tab 1 if applicable:• A section disclosing all current entities involved in the Change, when theChange is anticipated to take place and any information related to theChange that may affect the Proposal;• Each area in Vendor’s Proposal (All Tabs) should contain a separatesection that discusses whether the Change will alter, modify or otherwiseaffect the Vendor’s Proposal; and• If this is not applicable to your Proposal, Vendor should provide astatement that this section is “not applicable” behind Tab 1.2.13 TIE BREAKING PROCESS: In the event a tie occurs in price and / or scorebetween two (2) or more Vendors during a competitive solicitation, Citizens willdetermine the recommended Vendor for award based upon the following criteria(listed in order of priority):• All goods / services of the Vendor are manufactured / performed inFlorida; and• All goods / services of the Vendor are manufactured / performed in theUnited States.If neither of the above criteria resolves the tie, Citizens shall conduct a coin tossto determine the recommended Vendor for award. The tied Vendors will beinformed of the tie, and will be provided with reasonable notice of the time andlocation of the coin toss, which they may attend. The Director of Purchasing andGeneral Services or designee will ensure at least one (1) witness is presentduring the coin toss and document the results.2.14 ACCEPTANCE / REJECTION: Citizens reserves the right to accept or rejectany or all Proposals and to make the award to the Vendor(s) who, in the opinionof Citizens, will be in the best interest of and / or the most advantageous toCitizens. Citizens also reserves the right to reject the Proposals of any Vendorwho has previously failed in the proper performance of an award or to deliver ontime contracts of a similar nature or who, in Citizens’ opinion, is not in a positionto perform properly under this award. Citizens reserves the right to inspect allfacilities of Vendor(s) in order to make a determination as to the foregoing.Citizens reserves the right to waive any irregularities and technicalities and may,at its discretion, request a Rebid. Citizens reserves the right to disqualify anyVendor previously terminated for cause.2.15 REVIEW AND EVALUATION PROCESS: Citizens shall conduct acomprehensive and impartial review and evaluation of all Proposals meeting therequirements of this solicitation.Only timely submitted Proposals shall be reviewed by staff to determine if theycomply with the required forms and documents and submission requirementslisted in the solicitation. This will be a Pass / Fail review. Failure to meet any ofRFP No.: 10-0067 September 15, 2010Section 2 – Procurement Instructions Page 16 of 68

these requirements may render a Proposal non-responsive and result in rejectionof the entire Proposal. Further evaluation will not be performed.For the purpose of review, evaluation, scoring and ranking, review categorieshave been divided into multiple sections. The following reflects the Pass / Failcriteria and the maximum number of points that may be awarded by category:ITEMNO.EVALUATION CRITERIATABNO.POINTS1.Submission of All Required Forms andDocuments1 Pass / Fail2. Fee Schedules 2 103. Business / Corporation Qualifications 2 304. Staffing / Experience Level 3 355. Writing Sample 5 156. Past Citizens Experience 6 10Total Points:100 PointsBefore award, Citizens reserves the right to seek clarifications and request anyinformation deemed necessary for evaluation of Proposals. Vendors may berequested to make a presentation, provide additional references, provide theopportunity for a site visit, etc. Citizens reserves the right to require attendanceby particular named representatives of the Vendor during this solicitationprocess. Any written summary of presentations or demonstrations shouldinclude a list of attendees, a copy of the agenda, and copies of any visuals orhandouts, and shall become part of the Vendor’s Proposal.Using the evaluation categories specified above, Citizens shall evaluate and rankProposals and, at Citizens’ sole discretion, proceed to contract with the highestranked Vendor(s).Basis of Award: Citizens will award contracts to the highest ranked Vendor(s) insufficient numbers to ensure all of its current and potential Claims Legal Servicesneeds in each geographical and Service Area are satisfied. The award of aContract does not guarantee the assignment of a minimum number of matters.2.16 2.16 ELECTRONIC POSTING OF BOARD DECISION: Based on theevaluation, on the time and date reflected in the Calendar of Events Citizens’shall electronically post the decision rendered by the Board of Governors onCitizens’ website located at http://www.citizensfla.com/about/purchasingsolicitations.cfm,as this procurement is greater than $100,000, Board ofGovernor’s approval is required. If the notice of award is delayed, in lieu ofposting the notice of intended award the Procurement Officer shall post a noticeof the delay and a revised date for posting the notice of intended award.RFP No.: 10-0067 September 15, 2010Section 2 – Procurement Instructions Page 17 of 68

SECTION 3SCOPE OF SERVICESCONTENTS3.1 PROJECT BACKGROUND3.2 CITIZENS’ GUIDELINES FOR LEGAL SERVICES3.3 OUTSIDE COUNSEL LEGAL SERVICES EVALUATION3.4 CONTRACTED SERVICES3.1 PROJECT BACKGROUND: Since its formation in 2002, Citizens has retainedcounsel in more than 10,000 individual matters in the Claims Legal ServicesAreas encompassed in this solicitation. Citizens currently has more than 3,000pending claims legal assignments. This number has increased during the past12 months. Citizens’ Claims Legal Services needs are highly dependent on avariety of factors including the number of policies in force, changes in the law,and the occurrence or non-occurrence of natural disasters including hurricanes.It is Citizens’ desire to contract with a sufficient number of Claims Legal ServicesVendors to ensure the economic, fair and timely resolution of legal questions,claims disputes and lawsuits. In order to accomplish these goals, Citizens plansto contract with law firms who have the required expertise in the neededgeographical locations that offer the best value to represent Citizens’ current andanticipated legal needs. Based on these variables, Citizens does not guaranteea specific number of assignments or the value of any individual Contract.3.2 CITIZENS’ GUIDELINES FOR LEGAL SERVICES: Attachment “G”, Citizens’Guidelines for Legal Services defines the procedures to be followed for providinglegal services per this solicitation.3.3 OUTSIDE COUNSEL LEGAL SERVICES EVALUATION: Attachment “H”,Outside Counsel Legal Services Evaluation may be utilized, at minimum, in theevaluation of Vendor on an annual basis to monitor the Vendor’s progress. Theevaluation criteria are subject to change at Citizens’ discretion. Citizens reservesthe right to evaluate Vendors on a more frequent basis.3.4 CONTRACTED SERVICES: Based upon Vendor’s response to Attachment “D”,Service Area Representation the Vendor will be expected to perform legalservices for the specific Service Area(s) awarded. The Vendor will followAttachment “G”, Citizens Guidelines for Legal Services to complete theseservices.RFP No.: 10-0067 September 15, 2010Section 3 – Scope of Services Page 18 of 68

ATTACHMENT “A”FEE SCHEDULESSECTION I –FEE SCHEDULESMAXIMUM HOURLY RATE FEE SCHEDULEThe Hour Rate Fee Schedule applies to the following Service Areas:• First Party Property;• Third Party Liability; and• Appeals.Citizens is committed to contracting with law firms that demonstrate the ability to providehigh quality legal representation at a price that accurately reflects market conditions andCitizens’ fiscal responsibilities as a government created entity. The maximum hourlyrate Citizens will pay is listed below in Table 1. Citizens will disqualify, without furtherreview or evaluation, any response that proposes a higher rate. However, a respondingVendor may offer reduced hourly rates. Offers of a reduced rate must correspond withthe following Service Categories in Table 1:• Service Categories: General Matters; Appeals and Hourly Rates; Partners;Associates; Paralegals. Blended rates across Service Categories areunacceptable and will disqualify a Vendors’ Proposal without further review orevaluation;• Vendors offering a reduced rate for General Matters and / or Appeals will receiveadditional points in the scoring process;• A reduction of the Paralegal rate(s) only, will not qualify for Vendor earning ahigher score by receiving more points; and• The reduced hourly rate offered by a selected Vendor is the maximum hourly ratethat the Vendor will be paid during the Contract period.A Vendor that wishes to be considered for hourly rate assignments must indicate itsacceptance of the hourly rate listed in Table 1, or their reduced rate in Tables 1A, 1Band 1C by signing the appropriate area on the last page of this attachment.TABLE 1Hourly RatesFirst Party, Third Party and Appeals Legal MattersSERVICE CATEGORIESRate For:Partner Associate ParalegalGeneral Matters $175/hr $135/hr $85/hrComplex Matters $225/hr $135/hr $85/hrAppeals / Special Project $225/hr $135/hr $85/hrRFP NO.: 10-0067 September 15, 2010Attachment “A” – Fee Schedules Page 19 of 68

ATTACHMENT “A”FEE SCHEDULESVendors offering a reduced hourly rate for General Matters and / or Appeals shouldindicate such rate(s) in the worksheet below for each Service Category for which theywould like to be considered.SERVICE CATEGORYTABLE 1AHourly RatesFirst Party Legal MattersRate For:Partner Associate ParalegalGeneral Matters $ _______/hr $ _______/hr $ _______/hrSERVICE CATEGORYGeneral MattersTABLE 1BHourly RatesThird Party Legal MattersRate For:Partner Associate Paralegal$ _______/hr $ _______/hr $ _______/hrSERVICE CATEGORYAppeal ActivityTABLE 1CHourly RatesAppealsRate For:Partner Associate Paralegal$ _______/hr $ _______/hr $ _______/hrRFP NO.: 10-0067 September 15, 2010Attachment “A” – Fee Schedules Page 20 of 68

ATTACHMENT “A”FEE SCHEDULESEXAMINATIONS UNDER OATH FLAT FEE AGREEMENTAssignments for Examinations Under Oath (EUOs) will be paid a flat fee rate as follows:Table 2Flat Fees for Examinations Under OathSERVICE CATEGORYFLAT FEEThe Examination of one (1) person $1,500The Examination of two (2) persons in the same claim $2,000The Examination of more than two (2) persons in the sameclaim$500 / each additionalexamThe following services shall be included in the flat fee rates listed above:• Receipt of the assignment and on-going contact by telephone and email withCitizens until the conclusion of the EUO assignment;• Scheduling and correspondence with the subject(s) of the EUO and / or theirrepresentatives(s);• Review of the claim file and related material in advance of conducting the EUO;• Preparation of a written pre-examination report submitted to Citizens prior to theexamination stating the reason for, and goals of, the examination;• Travel costs and travel time to and from the examination;• Time spent conducting the examination itself; a written, post examination reportsummarizing the testimony and recommendations for future activity; and• Not included in the flat fee payment is the court reporter fee, or cost of atranscript or interpreter services as needed.Firms responding with an offer to provide First Party and / or Third Party legal servicesalso agree to provide EUO services at the Flat Fee rate. In the event that a claimdispute requires additional legal services after the EUO, including a coverage analysis,it is the intention and preference, but not a requirement, of Citizens to retain the Vendorengaged for the EUO. Vendors retained to provide EUO services may also work closelywith SIU.Flat fee EUOs include all EUOs arising out of all residential policies issued by Citizens.EUOs arising out of commercial and commercial residential policies are not included inthe EUO Flat Fee agreement. Citizens will compensate EUO services arising out ofcommercial and commercial residential policies, including EUOs arising out of claimsmade by insured condominium associations, at the General or Complex Matter hourlyrate, as described above.No additional points will be awarded for proposals that contain an offer to conduct EUOsat a reduced rate.RFP NO.: 10-0067 September 15, 2010Attachment “A” – Fee Schedules Page 21 of 68

ATTACHMENT “A”FEE SCHEDULESSUBROGATION CONTINGENCY FEE AGREEMENTTable 3Subrogation Contingency FeePre-Suit Matter In Litigation AppealRecovery AmountLess than $10,000 Up to 20% Up to 20% Up to 40%$10,001 - $50,000 Up to 30% Up to 33 1/3% Up to 40%$50,001 - $99,999 Up to 28% Up to 30% Up to 40%$100,000 + Up to 25% Up to 25% Up to 40%Citizens will pay no more than the maximum percentage of the total amount of theactual recovery as listed in Table 3 above. A Vendor may offer to provide a reducedmaximum percentage in its response. If a Vendor offering a reduced maximumpercentage is selected to provide Subrogation services, the reduced offer will be themaximum percentage paid by Citizens during the Contract period. Offers of a reducedmaximum percentage for pre-suit and litigation matters will receive additional points inthe scoring and selection process. No additional points will be awarded for a reducedmaximum percentage of the Subrogation Appeal rate. A Vendor selected to provideSubrogation services may adjust its contingency fee percentage downward, at theirdiscretion, at the time of an individual case assignment.A Vendor that wishes to be considered for Subrogation Contingency Fee assignmentsmust indicate its agreement to accept assignments at the maximum percentage, inTable 3 above, or its reduced offer in Table 3A below, in the Subrogation ContingencyFee agreement below.RFP NO.: 10-0067 September 15, 2010Attachment “A” – Fee Schedules Page 22 of 68

ATTACHMENT “A”FEE SCHEDULESFirms offering a reduced subrogation contingency fee rate for pre-suit and litigation mattersshould indicate such rate(s) in the worksheet below:Table 3ASubrogation Contingency FeeRecovery Amount Pre-Suit Matter In LitigationLess than $10,000 Up to ____% Up to ____%$10,001 - $50,000 Up to ____% Up to ____%$50,001 - $99,999 Up to ____% Up to ____%$100,000 + Up to ____% Up to ____%RFP NO.: 10-0067 September 15, 2010Attachment “A” – Fee Schedules Page 23 of 68

ATTACHMENT “A”FEE SCHEDULESSECTION II – VENDOR’S CONTACT INFORMATIONEnter required information in the appropriate space(s) below:VENDOR’S PRIMARY POINT OF CONTACTCompany Name:Primary Contact Name:Title:Address:Telephone:Cell:Fax:Email:ALTERNATE POINT OF CONTACTAlternate Contact Name:Title:Address:Telephone:Cell:Fax:Email:PROPOSED POINT OF CONTACT – CONTRACT PHASE(if awarded project)Primary Contact Name:Title:Address:Telephone:Cell:Fax:Email:RFP NO.: 10-0067 September 15, 2010Attachment “A” – Fee Schedules Page 24 of 68

ATTACHMENT “A”FEE SCHEDULESSIGNATUREHourly Rate Fee AgreementIndicates agreement to accept hourly rate assignments for the rates ascontained in Table 1 or reduced rates contained in Tables 1A, 1B and 1C,whichever is less. Acceptance of the Hourly Rate Fee also indicatesacceptance of the EUO Flat Fee.Company Name:Manual Signature:Print or Type Signatory Name:Print or Type Title:Date:SIGNATURESubrogation Contingency Fee AgreementIndicates agreement to accept Subrogation assignments for the maximumpercentage or the reduced percentage amount contained in the Proposal, whichever is less.Company Name:Manual Signature:Print or Type Signatory Name:Print or Type Title:Date:RFP NO.: 10-0067 September 15, 2010Attachment “A” – Fee Schedules Page 25 of 68

ATTACHMENT “B”LITIGATION, CLAIMS OR REGULATORY ACTION FORMIndicate whether the Vendor has had any reportable Litigation, Claims, or RegulatoryAction. Vendor shall provide detailed information relating to any circumstances andstatus including:• Any action, suit, proceeding or investigation before or by any state or federalcourt, agency or other authority currently pending against the Vendor, subsidiaryor affiliate, key personnel or control person that threatens the existence orcurrent stability of the Vendor or its ability to provide any of the services;• During the past five (5) years, any matter in which the Vendor, a subsidiary oraffiliate of Vendor, any control person, or any key personnel: (a) has beenconvicted, plead guilty, or plead no contest to any felony, or to misdemeanorinvolving dishonesty, breach of trust, or financial impropriety; (b) has been fined,had a license revoked by, surrendered to or otherwise sanctioned by, anyregulatory agency; (c) has been fined, penalized, sanctioned, or subject to anyother disciplinary action by any state or federal court, agency or other authority,self-regulatory organization, or professional organization, as a result of suchperson or entity’s activities in the business of insurance, or other licensedprofession; and• During the last five (5) years, any litigation that Vendor, a subsidiary or affiliate ofVendor, any control person, or any key personnel has initiated against Citizens orhas been initiated against you by Citizens.LITIGATION, CLAIMS OR REGULATORY ACTIONDoes the Vendor have any Litigation, Claims, or Regulatory Action?Please circle the appropriate response.If yes, provide details below (attach additional pages if necessary):YesNoSIGNATURECompany Name:Manual Signature:Print or Type Signatory Name:Print or Type Title:Date:RFP No: 10-0067 September 15, 2010Attachment “B” – Litigation, Claims or Regulatory Action Form Page 26 of 68

ATTACHMENT “C”CLAIMS LEGAL SERVICE ZONESRFP No.: 10-0067 September 15, 2010Attachment “C” – Claims Legal Service Zones Page 27 of 68

ATTACHMENT “D”SERVICE AREA REPRESENTATIONZone 1 Zone 2 Zone 3 Zone 4 Zone 5Service AreaConsiderfor RFPNo. ofAttorneysConsiderfor RFPNo. ofAttorneysConsiderfor RFPNo. ofAttorneysConsiderfor RFPNo. ofAttorneysConsiderfor RFPNo. ofAttorneysThird PartyLiabilityFirst PartyPropertySubrogationAppealRFP No.: 10-0067 September 15, 2010Attachment “D” – Service Area Representation Page 28 of 68

ATTACHMENT “D”SERVICE AREA REPRESENTATIONZone 6 Zone 7 Zone 8 Zone 9Service AreaConsiderfor RFPNo. ofAttorneysConsiderfor RFPNo. ofAttorneysConsiderfor RFPNo. ofAttorneysConsiderfor RFPNo. ofAttorneysThird Party LiabilityFirst Party PropertySubrogationAppealDoes your firm have experience with Sinkhole Defense – Yes or NoIf YES, provide the number of attorneys with at least two (2) years experience with Sinkhole Defense: ________Vendor Name: __________________________________________ Date: ______________________________Vendor Owner: _________________________________________RFP No.: 10-0067 September 15, 2010Attachment “D” – Service Area Representation Page 29 of 68

ATTACHMENT “E”LITIGATION EXPERIENCEThird PartyLiabilityFirst PartyPropertyAppealsSubrogationNumber of Lawsuits handled by firmin last three (3) yearsN/ANumber of Trials handled by firm inlast three (3) yearsN/ANumber of Lawsuits resolved byfavorable summary judgment in lastthree (3) yearsN/ANumber of Appeals handled by firmin last three (3) yearsN/A N/AVendor Name: _____________________________________________ Date: ___________Vendor Owner: ____________________________________________RFP No.: 10-0067 September 15, 2010Attachment “E” – Litigation Experience Page 30 of 68

ATTACHMENT “F”REFERENCE REQUESTREFERENCE REQUESTForClaims Legal ServicesRFP No.: 10-0067Citizens Property Insurance Corporation Purchasing Department09/15/2010Reference Provider:Citizens Property Insurance Corporation (Citizens) is seeking Proposals from Vendorscapable of providing claims legal defense services. These services include first andthird party litigation defense, insurance policy coverage analysis, examinations underoath and subrogation and salvage recovery. First party litigation defense includesbreach of contract issues related to windstorm, contractual appraisal, sinkhole, fire /arson, and water and tile. The Vendor indicated on the attached document requeststhat your firm respond to the following questions regarding Claims Legal Services youreceived from the Vendor’s firm by November 1, 2010.Please submit your response directly to:Citizens Property Insurance CorporationAttn: Kathy King, Procurement Officer2101 Maryland CircleTallahassee, Florida 32303OrEmail to:Bids@citizensfla.com or Kathy.King@citizensfla.com.If you have any questions or concerns please contact Kathy King at (850) 521-8135 orChristina Hennekes at (850) 521-8405. Thank you for your participation in this process.RFP No.: 10-0067 September 15, 2010Attachment “F” – Reference Request Page 31 of 68

ATTACHMENT “F”REFERENCE REQUESTPURCHASING &GENERAL SERVICESREFERENCE(S) CHECKLISTSolicitation No. & Title:RFP NO. 10-0067, Claims Legal Services______________Vendor Co. Name: ____________________________________________________Reference Company: __________________ Reference Contact: ______________Check box for appropriate response to each question using the scale below:5 – Excellent 4 – Good 3 – Average 2 – Below Average 1 - Poor1. How would you rate this firm’s knowledge of substantive law?5 4 3 2 1 N/AComment:2. How would you rate this firm’s knowledge of procedural law?5 4 3 2 1 N/AComment:3. How would you rate this firm’s knowledge of the insurance industry?5 4 3 2 1 N/AComment:4. How would you rate this firm’s written work product?5 4 3 2 1 N/AComment:5. Did the firm display the appropriate use of associates?5 4 3 2 1 N/AComment:6. How would you rate this firm’s cost / value?5 4 3 2 1 N/AComment:RFP No.: 10-0067 September 15, 2010Attachment “F” – Reference Request Page 32 of 68

ATTACHMENT “F”REFERENCE REQUESTPURCHASING &GENERAL SERVICESREFERENCE(S) CHECKLISTSolicitation No. & Title:RFP NO. 10-0067, Claims Legal Services______________Vendor Co. Name: ____________________________________________________Reference Company: __________________ Reference Contact: ______________7. How would you rate this firm’s efficiency?5 4 3 2 1 N/AComment:8. How would you rate this firm’s creativity / strategy?5 4 3 2 1 N/AComment:9. How would you rate this firm’s professionalism?5 4 3 2 1 N/AComment:10. Would you rate this firm’s responsiveness?5 4 3 2 1 N/AComment:11. How would you rate this firm’s client relations?5 4 3 2 1 N/AComment:12. How would this firm’s ability to keep client informed of developing law?5 4 3 2 1 N/AComment: ________________________________________________13. How many matters did this firm provide services for within the last two (2)years?Comment: ________________________________________________RFP No.: 10-0067 September 15, 2010Attachment “F” – Reference Request Page 33 of 68

ATTACHMENT “F”REFERENCE REQUESTPURCHASING &GENERAL SERVICESREFERENCE(S) CHECKLISTSolicitation No. & Title:RFP NO. 10-0067, Claims Legal Services______________Vendor Co. Name: ____________________________________________________Reference Company: __________________ Reference Contact: ______________14. What types of matters were handled?Comment: ________________________________________________Additional Comments: ______________________________________________________________________________________________________________________________________________Contact Signature_____________________Title_________________________Date_________________________Phone Number_________________________Email AddressRFP No.: 10-0067 September 15, 2010Attachment “F” – Reference Request Page 34 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICESCitizens’Guidelines forLegal ServicesRev. 8/13/10RFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 35 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICESTable of Contents1. OVERVIEW .................................................................................... 391.1. Understanding the Unique Nature of Citizens Property Insurance Corporation 391.2. State Governmental Entity ............................................................................... 401.3. Citizens’ Enabling Statute, F.S. 627.351(6) ..................................................... 401.4. Code of Ethics ................................................................................................. 401.5. Public Records ................................................................................................. 401.6. Immunity .......................................................................................................... 411.7. Professional Conduct ....................................................................................... 411.8. Depopulation and Takeouts ............................................................................. 411.9. The Assumption Agreement and Opt Outs ...................................................... 421.10. Conflict of Interest ............................................................................................ 431.11. Malpractice Insurance ...................................................................................... 441.12. Compliance with Laws ..................................................................................... 441.13. Cooperation with Other Law Firms................................................................... 441.14. Nature of Business Relationship with Citizens ................................................. 442. LEGAL SERVICES REPORTING REQUIREMENTS .................... 442.1 Acknowledgement of Assignment .................................................................... 452.2 Initial Report ..................................................................................................... 452.3 Interim Report .................................................................................................. 452.4 Pre-Mediation Report ....................................................................................... 462.5 Pre-Trial Report ............................................................................................... 462.6 Post-Trial Report .............................................................................................. 463. BILLING FOR LEGAL SERVICES ................................................. 473.1 Use of Online Billing Service ............................................................................ 473.2 Budget ............................................................................................................. 47RFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 36 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICES3.3 Billing Cycle ..................................................................................................... 473.4 Format ............................................................................................................. 483.5 Authorized Billing Personnel ............................................................................ 483.6 Use of Associate / Junior Attorneys or Paralegals ........................................... 493.7 In-Firm Conferences and Memoranda ............................................................. 493.8 Multiple Attendees ........................................................................................... 493.9 Fees ................................................................................................................. 493.10 Expenses ......................................................................................................... 503.11 Travel Expenses .............................................................................................. 503.12 Expenses for Professional Services ................................................................. 513.13 Vendor Bills ...................................................................................................... 513.14 Joint Defense / Split Billing .............................................................................. 513.15 Retainer ........................................................................................................... 514. DISCOVERY / MOTION PRACTICE .............................................. 514.1 Focused / Purposeful ....................................................................................... 514.2 Depositions ...................................................................................................... 514.3 Depositions of Corporate Representatives ...................................................... 524.4 Depositions of Independent Adjusters Released from Citizens ....................... 524.5 Records Production ......................................................................................... 534.6 Motions ............................................................................................................ 534.7 Experts ............................................................................................................. 535. SETTLEMENT OPPORTUNITIES / PROPOSAL FORSETTLEMENT ........................................................................................ 535.1 Settlement Demands ....................................................................................... 545.2 Proposal for Settlement ................................................................................... 545.3 Serving a Proposal for Settlement ................................................................... 54RFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 37 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICES5.4 Managing Litigation Strategy ........................................................................... 546. APPEALS ....................................................................................... 546.1 Receipt of Notice of Appeal ............................................................................. 546.2 Serve a Notice of Appeal ................................................................................. 546.3 Representation in Appellate Matters ................................................................ 546.4 Appellate Bonding Requirements .................................................................... 557. LEGAL RESEARCH ...................................................................... 557.1 Legal Research Request ................................................................................. 557.2 Legal Research Guidelines .............................................................................. 557.3 Legal Research Results ................................................................................... 558. REPRESENTATION OF INSURED IN DEFENSE OF THIRDPARTY MATTER ................................................................................... 559. AUDIT / FILE REVIEW ................................................................... 559.1 Office of Internal Auditor .................................................................................. 559.2 Associated Fees .............................................................................................. 569.3 Document Retention ........................................................................................ 569.4 Audit Results .................................................................................................... 5610. PUBLIC COMMENT / MEDIA RELATIONS ................................... 5611. TERMINATION OF SERVICES ...................................................... 5611.1 Termination of Assignment .............................................................................. 5611.2 Receipt of Termination of Assignment ............................................................. 5712. Appendix A .................................................................................... 5812.1 Clerical / Administrative Tasks ......................................................................... 58RFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 38 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICES1. OVERVIEW1.1. Understanding the Unique Nature of Citizens Property InsuranceCorporationA thorough understanding of the unique nature of Citizens PropertyInsurance Corporation is critical to effective representation of Citizens andits insureds.Citizens is committed to maintaining a versatile legal services plan thatencourages superior customer service, quality file handling, exceptionallegal representation and responsible cost control. Citizens’ Guidelines forLegal Services is a manual intended to encourage a universal, consistentapproach for handling all matters in which legal services are necessary.These guidelines are centered around teamwork and flexibility in order toensure effective and efficient legal representation on behalf of Citizensand its insureds.The Guidelines focus on early evaluation and planning, ongoingcommunication, and a clear delineation of responsibilities and appropriateuse of legal services. The goal is to identify the most effective and efficientcase plan, and invest resources accordingly. Through teamwork, jointaccountability and commitment to the overall ideals of Citizens PropertyInsurance Corporation, we strive to achieve superior customer service,effective relationships with the law firms representing Citizens and itsinsureds, and fiscally responsible management of matters involving legalservices.Our VisionWe aspire to be responsive stewards of the public trust, setting thestandard for courteous, prompt and professional customer service,operational efficiency and fiscal responsibility. We strive to be animportant insurance safety net for Floridians and to earn respect as avaluable partner in protecting Florida’s economic health.Our Corporate MissionOur mission is to serve the people of Florida by providing property andcasualty insurance protection and superior customer service.Our ValuesIn accomplishing our mission, we embrace the following values:• Public Service – We are committed to provide the highest quality ofservice to benefit the citizens of Florida.RFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 39 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICES• Integrity – We will demonstrate steadfast adherence to our valuesand ethical code of conduct.• Respect – We will reflect genuine honor and respect for oneanother and those we serve.• Courtesy – We will exhibit well-mannered behavior and politenessin everything we do.• Responsiveness – We will perform with an appropriate sense ofurgency and flexibility.• Fairness – Our overriding culture is to always do the right thing.Our Claims MissionCitizens claims is a customer focused organization intent on deliveringfast, fair, honest and accurate claims service. We continuously strive tobe efficient, dynamic and committed to managing claim costs, whileadhering to the highest ethical standards.1.2. State Governmental EntityCitizens is a Florida governmental entity established pursuant to itsenabling statute, F.S. 627.351(6), and is subject to certain, but not all,laws applicable to state government entities.1.3. Citizens’ Enabling Statute, F.S. 627.351(6)It is the responsibility of any firm providing legal services on behalf ofCitizens to thoroughly review and gain a competent understanding of theenabling legislation and consider such legislation during therepresentation of Citizens or its insureds.1.4. Code of EthicsCitizens’ enabling statute imposes ethical standards on Citizens and itsemployees and board of governors. These standards include a “no gift”rule and are incorporated into Citizens’ Code of Ethics, which also appliesto vendors and law firms working with Citizens. All law firms providinglegal services on behalf of Citizens are subject to Citizens’ Code of Ethicsand are required to submit a complete and executed Vendor Conflict ofInterest Form to Citizens’ Purchasing Department. The Code of Ethics andVendor Conflict of Interest Form are available at www.citizensfla.comunder “Purchasing”.1.5. Public RecordsCitizens is subject to Florida’s public records requirements under Chapter119, Florida Statutes and s. 24(a), Art. I of the State Constitution. Thereare various exemptions applicable to Citizens, under Citizens’ enablingstatute, including: “matters reasonably encompassed in privilegedRFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 40 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICESattorney-client communications” (continues through and after conclusionof matter); claims files (until termination of all litigation and settlement of allclaims arising out of the same incident, although portions of the claimsfiles may remain exempt, as otherwise provided by law); informationrelating to negotiations for contractual services (until conclusion of thenegotiations); and under Chapter 119, including the attorney-work product(until the conclusion of litigation). Certain documents generated by theFirm in its representation of Citizens may be subject to public recordslaws, subject to applicable exemptions.Upon receipt of a public records request directed to the Firm pertaining toCitizens’ subject matter, the Firm shall immediately notify Citizens’records custodian (and the Citizens employee supervising the Firm’swork) of such request and will work cooperatively with Citizens to respondto the request, in accordance with the requirements of Chapter 119,Florida Statutes. In no event shall the Firm respond to such requestoutside of Citizens’ direction and involvement.1.6. ImmunityCitizens’ enabling statute grants immunity for all causes of action againstCitizens, except as listed by statute. Citizens acknowledges that this is aunique and novel issue for most courts and the legal community, ingeneral. As such, it is critical that Citizens be aware of any challenges toimmunity from the outset. In the event that any issues challengingCitizens’ immunity are raised in the course of litigation, such issues mustbe immediately (the same day) raised to the attention of the LitigationSpecialist and Citizens’ Legal Services Department.1.7. Professional ConductAny law firm providing legal services to Citizens shall ensure that itspersonnel complies with all applicable standards of ethics and rules ofprofessional responsibility, including the Florida Rules of ProfessionalConduct promulgated by the Florida Supreme Court for attorneyspracticing in Florida (or similar standards applicable to attorneys practicingoutside the state of Florida). Such standards include rules related toconflicts of interest and confidentiality that are intended to protect Citizensand Citizens’ information.Additionally, in keeping with vision and mission of Citizens as entrusted bythe Florida legislature, Citizens expects all attorneys and legalprofessionals acting on its behalf, or on behalf of Citizens’ insureds, toadhere to the initiatives for Professional Conduct as promoted by theFlorida Bar Center for Professionalism. (See)1.8. Depopulation and TakeoutsRFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 41 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICESThe Florida Legislature authorized Citizens to develop a DepopulationProgram to reduce the number of property owners who have insurancecoverage through Citizens by encouraging new or existing privateinsurance companies to take on Citizens policies. Citizens expects itscounsel to be familiar with this process as described in Citizens’ enablingstatute, F.S. §627.351(6)(a)-(ff); and Depopulation of Citizens F.S.§627.3511. Counsel is also expected to be familiar with Citizens’ internalprocedures regarding depopulation and takeout carriers. A current list oftakeout carriers can be found at:https://www.citizensfla.com/about/depopinfo.cfm?type=links&show=pdf&link=/shared/depop/documents/TakeoutCompanyContacts.pdfCounsel should check these listings on a regular basis. The list provides aquick reference of other insurance carriers that may be clients of your firm.1.9. The Assumption Agreement and Opt OutsThe Assumption Agreement is a contract between Citizens and a takeoutcarrier which specifies the terms under which the rights and obligations ofa group of policies are transferred from Citizens to a takeout carrier.Citizens can only enter into assumption agreements with carriers thathave been approved for depopulation of a certain number and certaintypes of Citizens policies by the Office of Insurance Regulation. A listingof consent orders between the takeout carriers and the Office can beviewed at: http://www.floir.com/TakeoutCompanies.aspxWhen a takeout carrier is approved to assume a Citizens’ policy, it sendsan Opt Out form to notify the insured about the pending assumption andtheir right to opt out of assumption and remain with Citizens. The Opt Outform is mailed approximately 30 days prior to the scheduled assumption.Examples of takeout carrier notices of assumption and Opt Out forms canbe viewed at: http://www.citizensfla.com/about/depopinfo.cfmIf the insured does not opt out, Citizens sends a Notice of Assumption andNon-Renewal notifying the insured that the Citizens policy wassuccessfully assumed by the takeout carrier as of the date listed in theNotice of Assumption. The takeout carrier is responsible for claims with adate of loss after the assumption date. The insured is also informed thattheir Citizens policy will not be renewed.Questions regarding whether the Citizens policy or the takeout policyprovides coverage for a loss may arise. This coverage question is similarto any coverage issue involving two carriers that provide successivecoverage. However, the issue is complicated by the mid-term assumptionof a Citizens’ policy by a takeout carrier. Any claim with an unknown,unclear or debatable date of loss presents an actual or potential conflict ofRFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 42 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICESinterest for a law firm that has Citizens and the assuming takeout carrieras clients.It is not a prima-facie conflict for your firm to provide legal services toCitizens and other insurance carrier clients, including takeout carriers.However, counsel must closely scrutinize all assignments to determine ifthere was an assumption, the assumption date, the date of loss, andwhether the insured exercised their right to opt out or decline assumption.Citizens considers it an impermissible conflict of interest for your firm torepresent Citizens and the takeout carrier when the two are co-defendantsin the same lawsuit and the date of loss is at issue. See generally FloridaBar Rules of Professional Conduct 4-7.1. It is also a conflict to represent atakeout carrier in any suit or claim in which Citizens is not a party and yourfirm alleges the date of loss occurred wholly or partially prior to theassumption date.It may also be a conflict for your firm to represent Citizens in a case whereyour firm is not able to argue the date of loss occurred after theassumption date because you represent the takeout carrier in unrelatedmatters.Your initial conflict review should also consider whether your firmrepresents insurance agents and brokers. Conflicts may also arise if yourfirm represents manufacturers of building construction products or otherproducts that may cause damage covered under a Citizens policy and/orany client that may be involved in a subrogation claim with Citizens.1.10. Conflict of InterestPrior to representing Citizens, the law firm must undertake reasonable andcustomary efforts to determine that no actual or potential conflicts ofinterest exist with any individual attorney or staff personnel working for thefirm that would bar that individual or firm from representing Citizens orCitizens’ insureds. In the event the firm hires or retains any additionalindividual attorney or staff personnel, the firm must undertake the samereasonable and customary efforts to determine whether any such conflictsmay exist.Prior to accepting any specific assignment, counsel must undertakereasonable and customary efforts to determine that no actual or potentialconflicts of interest exist that would bar counsel from representing Citizensor Citizens’ insureds.In the event an actual or potential conflict is identified, counsel shallimmediately notify Citizens. Citizens retains the right to declinerepresentation and to withdraw any pending matters with the firm in theRFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 43 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICESevent of an actual or potential conflict. A waiver of conflict must beexecuted by Citizens before counsel may proceed with representation onbehalf of Citizens or Citizens’ Insured.Should any conflict of interest arise during the course of representation ofCitizens’ insured(s), the Firm will take no action that would prejudice theinterests of the insured(s) in the matter.1.11. Malpractice InsuranceThe Firm shall maintain in effect, at its sole expense, legal malpracticeinsurance of such a type and with such terms and limits as may bereasonably associated with providing legal services on behalf of Citizens.Upon request, the Firm shall provide Citizens with the certificates ofinsurance.1.12. Compliance with LawsThe Firm will comply with all applicable laws, ordinances, rules, andregulations governing the Firm’s duties or responsibilities associated withproviding legal services on behalf of Citizens. The Firm is responsible forassuring that all persons who perform services for Citizens are properlylicensed and are maintaining compliance with all applicable lawsgoverning their conduct.1.13. Cooperation with Other Law FirmsSituations may arise when it is necessary for Citizens to retain theservices of additional counsel to work independently or in conjunction withyour Firm on common issues or matters. The Firm’s cooperation andcompliance with all requests for information, assistance and collaborationfrom Citizens or other counsel is required.1.14. Nature of Business Relationship with CitizensFor any law firm providing legal services on behalf of Citizens, the Firmacknowledges that the business relationship between the Firm andCitizens is that of an independent contractor. Nothing herein, or in anyrepresentation undertaken, shall be deemed to constitute that Citizens andthe Firm are engaged in a partnership, joint venture, or agency for anypurpose whatsoever. The Firm shall be responsible for maintaining its ownpublic liability, professional liability and malpractice insurances.2. LEGAL SERVICES REPORTING REQUIREMENTSCommunication is an essential element of our strategic partnership. It isimperative that we are informed, in a timely manner, of emerging facts, shiftingemphasis and other significant developments that impact case evaluation.RFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 44 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICES2.1 Acknowledgement of AssignmentWithin five (5) business days of assignment, the Firm shall acknowledgereceipt of the newly assigned matter in writing to Citizens, including astatement acknowledging that no conflicts exist with acceptance ofassignment. Any matters of immediate concern, or information that mayresult in early resolution of the case, should be addressed in theacknowledgement letter.2.2 Initial ReportThe Initial report is due to Citizens within thirty (30) days of case or matterassignment. The Initial report should include the following informationnecessary for initial evaluation and development of case plan:A) Facts (Date and circumstances of loss, claim history, significantbackground information)B) DamagesC) Preliminary Liability Analysis (Anticipated defenses, legal theories,application of fact to theories, conclusions based on application offacts to theories)D) Significant Evidentiary IssuesE) Initial DiscoveryF) Initial Case Evaluation (Strength / weakness of defenses withanticipated likelihood of success, strength / weakness to Plaintiff’sassertions)G) Motion Practice (Pending or anticipated Motion(s), anticipated benefitand outcome)H) ADRI) Further Investigation / Other ActivitiesJ) Settlement Opportunities and RecommendationsK) Projected Completion Date for initial phaseL) Projected Budget tailored to specific litigation phase2.3 Interim ReportThe Interim report is intended to supplement prior reports as needed forsignificant case developments. An Interim report should be submitted assignificant case developments occur and as needed for revision of thecase plan. This report should include the following as applicable to theindividual case:A) Update DiscoveryB) Motion PracticeC) Case EvaluationRFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 45 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICESD) ADRE) Further Investigation / Other ActivitiesF) Settlement Opportunities and Recommendations2.4 Pre-Mediation ReportThe Pre-Mediation report is due to Citizens no later than thirty (30) daysprior to the scheduled Mediation date. The Pre-Mediation report shouldinclude the following necessary for settlement evaluation:A) FactsB) DamagesC) Liability AnalysisD) Significant Evidentiary IssuesE) Settlement Evaluation and Recommendations2.5 Pre-Trial ReportThe Pre-Trial report is due to Citizens no later than thirty (30) days prior tothe scheduled Trial date. The Pre-Trial report should include the followingnecessary for a comprehensive evaluation of the case and potential forsuccess at trial:A) Trial DateB) Trial Judge (Prior experience, reputation, evaluation, etc.)C) Potential Jury PanelD) FactsE) DamagesF) ADRG) Pending Pre-trial discoveryH) Pre-trial MotionsI) Significant Arguments of PlaintiffJ) Significant Defense ArgumentsK) Evaluation of WitnessesL) Updated Evaluation (Including settlement recommendations,potential judgment / verdict – best day vs. worst day outcomes,likelihood of success for defense)M) Trial Cost Estimate2.6 Post-Trial ReportRFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 46 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICESThe Post-Trial report is due to Citizens within five (5) days aftertermination of the trial. The Post-Trial report should summarize theevidence and events at trial, the outcome and basis for such findings, aswell as potential for appeal by either party.A copy of all case law cited in any report and relied upon by the attorney informing his / her legal opinion should be provided to Citizens.3. BILLING FOR LEGAL SERVICESCitizens will construe each statement for legal services as a representation bythe Firm that the statement (1) has been reviewed by the attorney having primaryresponsibility for that matter, (2) accurately reflects reasonable and necessarytime, billing and expenses for that matter, and (3) complies with Citizens’ billingpolicies as described herein and applied through any billing service employed byCitizens.3.1 Use of Online Billing ServiceCitizens currently utilizes a computerized online billing service throughwhich all budgets/invoices for legal services must be submitted. Any lawfirm performing legal services on behalf of Citizens is expected tocooperate with and utilize any such billing services employed by Citizens.The Firm is expected to comply with Citizens’ billing procedures at its ownexpense. In the event of extraordinary circumstances preventing theFirm’s use of such services, Citizens will cooperate with the Firm todevelop an alternative method for submitting bills for legal services.3.2 BudgetFor each matter assigned to the Firm, a detailed budget is to be submittedwith the Initial Report reflecting the anticipated fees and expenses for thevarious stages throughout the assignment. Thereafter, revised budgetsshould be submitted when case developments significantly alter theexisting budget or case plan. Preparation of a budget is not a billable task,and any charges submitted for the same will not be honored by Citizens.3.3 Billing CycleThe billing on each matter is to be submitted on a monthly basis (30 daycycle). A final bill for all outstanding charges should be forwardedimmediately by the Firm upon the conclusion of each matter.Citizens will not honor interest fees, or other late fees, assess by the Firmfor any invoice submitted for payment.RFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 47 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICES3.4 Format3.4.1 All billing is to be submitted in an itemized format reflecting theactual time spent on each task and shall reflect the followinginformation:A) The date the specific task was performedB) A detailed description of each task performed (Each task isto be billed separately; block billing will not be honored)C) Name or initials of the individual who performed the taskD) The amount of time, by the tenth of the hour, spent toperform each taskE) The hourly fee for the individual who performed the task,when applicableF) The total time and fees charged by each individual for theapplicable billing periodG) The total time and fees charged for all individuals for theapplicable billing periodH) Itemized accounting of all expenses with supportingdocumentation3.4.2 Generic descriptions of tasks performed, such as the following,without further details are not acceptable:A) Review case and issuesB) Review correspondenceC) Telephone callD) Trial preparationE) Update strategyF) Motion workG) Prepare for meetingH) Receive / review documentsI) TravelJ) ResearchK) AnalysisNOTE: Preparation of an invoice is not a billable task, and any chargessubmitted for the same will not be honored by Citizens.3.5 Authorized Billing PersonnelThe Firm will designate one senior level attorney to have primaryresponsibility for each matter assigned by Citizens. Each matter isexpected to be staffed economically and effectively according to thespecific needs of the assignment. It is expected that each task is to beaccomplished by one legal professional. Pre-approval must be obtainedRFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 48 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICESfrom Citizens for any given task that may necessitate more than one legalprofessional (billing should reflect the name of the Citizens’ representativeauthorizing the use of multiple personnel). Citizens will not honor feessubmitted for tasks deemed to be clerical in nature or time associated withadministrative functions (please refer to Appendix A for a list of suchtasks). Additionally, Citizens will not honor fees submitted for duplicationof efforts caused by the Firm’s staffing requirements.In an effort to ensure economic and efficient handling of each matterassigned to the Firm, no more than two attorneys (one senior levelattorney and one associate/junior level attorney) should be assigned to anindividual matter for handling throughout the life of that matter. Billing byan unauthorized attorney on an individual matter will not be honored.Should it become necessary to assign additional attorneys to the matter,prior approval from the Litigation Specialist is required.3.6 Use of Associate / Junior Attorneys or ParalegalsA balance must be struck between the efficiency a more experiencedlawyer brings to a given task and the advantages of having the taskperformed by a junior lawyer or a paralegal. In matters where the servicesof a junior attorney or paralegal are employed, Citizens expects all workperformed to be overseen and approved by a senior attorney.Citizens is not responsible for the training of law firm personnel. Althoughit is recognized that frequent reviews and conferences are necessary forthe training of new associates and paralegals, Citizens will not honorbilling for such matters.3.7 In-Firm Conferences and MemorandaUnless otherwise approved by Citizens, billing for in-firm conferences andmemoranda between attorneys or legal professionals of the same law firmwill not be honored by Citizens. Approved billing for such in-firmconferences will be authorized only when the specific need arises in orderto provide effective representation due to the unique circumstances of anassignment.3.8 Multiple AttendeesUnless otherwise approved by Citizens, fees shall be billed for only oneattorney in attendance at trial, court appearances, meetings, depositions,witness interviews, inspections and other functions.3.9 FeesAll matters are assigned for hourly billing unless alternative feearrangements have been specified by Citizens. Any changes in the hourlyrates (or alternative fee arrangements) must be pre-approved by Citizensin writing; unilateral rate or fee increases will not be honored.RFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 49 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICES3.10 Expenses3.10.1 Citizens is not responsible for charges or reimbursement foroverhead office expenses incurred by the Firm. Such overheadexpenses would include the following:A) Photocopying expenses associated with the lease, purchaseor maintenance of equipment;B) Postage;C) Telephone charges (except long distance);D) Facsimile charges;E) Subscriptions, including those for legal periodicals, referencemanuals, and research materials;F) Computerized legal research access, software andsubscriptions;G) Computerized case management software or subscriptions;H) Reviewing / analyzing conflicts within the Firm;I) Local Mileage (within a 50 mile radius from the Firm’s localoffice);J) Parking fees;K) Courier / Delivery service (unless pre-approved by Citizensin extraordinary circumstances);L) Office supplies;M) Non-attorney / non-paralegal staff;N) Local meals or refreshments during meetings;O) Utilities or rental fees for office facilities; andP) Seminars attended by attorneys or legal professionals.3.11 Travel ExpensesLong distance travel is defined as any travel outside of a 50 mile radiusfrom the Firm’s local office. The Firm shall consult with Citizens prior toincurring any expenses associated with long distance travel as definedherein. Except as otherwise agreed to by Citizens in writing, Citizens willreimburse the Firm only for travel expenses that are necessary andreasonable in nature and amount, subject to Citizens’ Travel and TravelReimbursement Policy for Non-Citizens Employees “ReimbursementPolicy,” available at www.citizensfla.com under “Purchasing.” The dollarlimitation in the Reimbursement Policy is not applicable to the Firm. To theextent of any conflicts, the terms of written agreement with the Firm, asmodified by any addenda, control over the Reimbursement Policy.RFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 50 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICES3.12 Expenses for Professional ServicesThe Firm must consult with and obtain approval from Citizens prior toincurring expenses for experts, consultants, investigators, temporaryattorneys or outside paralegals, or other professional services.3.13 Vendor BillsCharges for approved services by outside vendors, in the form of theoriginal invoice, should be submitted to Citizens for direct payment in themethod as directed by Citizens. In the event that the Firm incurs anyexpense for such services, Citizens will reimburse the Firm for the actualcost of the service. To be eligible for reimbursement, the Firm must submitthe vendor’s invoice and any other associated documentation containingthe following information: (1) Name of vendor, (2) Date charges incurred,(3) Specific description of service, (4) Identification of matter with whichservice is associated, and (5) Amount charged for service.3.14 Joint Defense / Split BillingAny time billed on more than one matter, including work billed to otherclients or other carriers, where a joint defense agreement exists (eitherwithin the same case or within a series of similar cases) should be splitbetween each matter at an appropriate ratio and indicate the following: (1)Total billing split, (2) Number of matters time was billed, and (3) Billingallotted to each matter.3.15 RetainerCitizens does not provide a retainer for fees or costs for legal servicesrendered on its behalf. Any retainer routinely applied by the Firm will bedeemed waived for any assignment from Citizens.*Citizens shall have the right to decline to pay or to seek reductions and /or refunds for any charges that fail to comply with the billing requirementsset forth herein, and / or are not fully explained or documented by theFirm.4. DISCOVERY / MOTION PRACTICE4.1 Focused / PurposefulAny discovery conducted on behalf of Citizens or Citizens’ insureds shallbe focused and purposeful in light of the needs and issues associated withthe specific matter.4.2 Depositions4.2.1 The Firm should evaluate the need for each deposition and shouldonly pursue such depositions when necessitated by the uniquecircumstances of the specific matter. The Firm should evaluate theRFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 51 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICESneed for transcription of the deposition; however a copy of anytranscript obtained should be provided to Citizens in a timelymanner.4.2.2 The Firm shall consult with Citizens prior to initiating any deposition,if not already approved through the case plan. The Firm shallimmediately notify Citizens of any depositions requested by otherparties, coordinate with Citizens for the scheduling of anydeposition of a Citizens representative, and provide timely updatesas to the rescheduling of any deposition.4.2.3 It is the responsibility of the Firm to ensure that all witnessestestifying on behalf of Citizens are sufficiently prepared for eachand every deposition. In the event a Corporate Representative isrequired for deposition, the Firm shall immediately notify Citizensand cooperate with Citizens Legal Department in the designationand preparation of such witness for deposition.4.2.4 In the event that a notice for deposition requires production of anydocuments held by Citizens, the Firm shall immediately notifyCitizens and comply with Citizens’ policies regarding recordsproduction.4.3 Depositions of Corporate RepresentativesIn any instance when the deposition of a Corporate Representative onbehalf of Citizens is requested by another party, such request must becommunicated in writing to the Litigation Specialist immediately (the sameday). Prior to designating a Corporate Representative for any purpose,Citizens requires receipt of the Notice of Deposition outlining the specifictopic areas for which a Corporate Representative is requested. Only afterCitizens’ review and careful consideration of the topic areas outlined in theNotice of Deposition will the appropriate individual(s) be designated totestify as Corporate Representative on behalf of Citizens. Additionally,Citizens requires that the Firm file a “Notice of Designation” prior toproducing any individual as Corporate Representative outlining thespecific topic areas for which the designee is offered, along with anyapplicable discovery objections. An exemplar of the “Notice ofDesignation” can be obtained from the Litigation Specialist.4.4 Depositions of Independent Adjusters Released from CitizensIn the event that a matter requires the testimony of an IndependentAdjuster that has been released from Citizens, it is the responsibility of theCitizens’ Litigation Specialist to locate, contact and make arrangementsfor the appearance of the individual.RFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 52 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICES4.5 Records ProductionAs stated above, Citizens is a government entity and subject to Florida’spublic records requirements under Chapter 119, Florida Statutes and s.24(a), Art. I of the State Constitution. As such, it is imperative that the Firmconsult with Citizens prior to responding to any discovery request that mayarise out of litigation. Upon receipt of any discovery request, the Firm shallnotify Citizens in a timely manner and work closely with Citizens torespond appropriately to any requests.4.6 Motions4.6.1 The Firm should evaluate the need for motion practice, and consultwith Citizens regarding the intent and expected outcome of eachMotion.4.6.2 The Firm shall not file any of the following Motions without priorapproval from Citizens’ Litigation Specialist or Legal ServicesDepartment:A) Motion for Sanctions pursuant to F.S.57.105B) Motion to Dismiss for Fraud and / or MaterialMisrepresentationC) Counterclaim against a Citizens’ insuredD) Motion for Summary JudgmentE) Motion to Compel, of any type4.6.3 Upon filing of any of the following Motions by another party, theFirm must notify, and provide a copy, to the Litigation Specialistimmediately (the same day) of such Motion:A) Motion for Sanctions pursuant to F.S.57.105B) Motion to Dismiss CounterclaimC) Motion to Strike Affirmative DefenseD) Motion for Summary JudgmentE) Motion to Compel, of any type4.7 ExpertsApproval from Citizens must be obtained prior to retaining, or incurring anyexpenses, associated with any expert or consultant. In first party matters,the choice of the particular expert or consultant shall be subject toCitizens’ approval or may be selected unilaterally by Citizens.5. SETTLEMENT OPPORTUNITIES / PROPOSAL FORSETTLEMENTRFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 53 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICES5.1 Settlement DemandsThe Firm shall immediately advise Citizens of any settlement demands orsettlement opportunities that may arise in each matter. The Firm shallconsult with Citizens and obtain approval prior to engaging in anysettlement negotiations on behalf of Citizens or its insureds.5.2 Proposal for SettlementThe Firm shall immediately notify Citizens of the receipt of a Proposal forSettlement and submit a copy of the Proposal for Settlement in a timelymanner. The Firm shall consult with Citizens and obtain approval prior toany acceptance or rejection of a Proposal for Settlement.5.3 Serving a Proposal for SettlementThe Firm shall not serve a Proposal for Settlement on behalf of Citizens orits insureds without prior approval from Citizens. This is not meant tointerfere with any independent offer for settlement from an insured whensuch an offer is made outside of Citizens’ contractual obligations to theinsured and for which Citizens is not responsible.5.4 Managing Litigation StrategyAs the primary responsibility for directing and managing litigation strategylies with the Citizens’ Litigation Specialist, he/she may handle settlementnegotiations directly with opposing counsel. In such situations, theLitigation Specialist will notify counsel of the intent to enter into directnegotiations in order to avoid confusion or contradictory communicationsto opposing counsel.6. APPEALS6.1 Receipt of Notice of AppealThe Firm shall immediately advise Citizens of the receipt of a Notice ofAppeal and submit a copy of the Notice in a timely manner. The Firm shallobtain Citizens’ approval prior to taking any action in response to theNotice of Appeal.6.2 Serve a Notice of AppealThe Firm shall not serve a Notice of Appeal on behalf of Citizens withoutthe express authority and approval of Citizens.6.3 Representation in Appellate MattersAny Firm representing Citizens in an appellate matter shall be expected towork closely in conjunction with the Litigation Specialist and Citizens’Legal Department regarding the legal positions asserted on behalf ofCitizens.RFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 54 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICES6.4 Appellate Bonding RequirementsAs a state governmental entity, Citizens is exempt from appellate bondingrequirements pursuant to Florida Rules of Appellate Procedure Rule9.310(b)(2).7. LEGAL RESEARCH7.1 Legal Research RequestThe need for legal research must be discussed and pre-approved byCitizens. The results of any such research must be provided to Citizens ina timely manner.There are some matters for which Citizens may already be in possessionof, or has itself conducted, legal research which may be made available touse by the Firm. In such circumstances, additional research by the Firmwill be approved only to the extent needed for unique factual scenariosrelevant to a particular case.7.2 Legal Research GuidelinesLegal research in excess of three (3) hours in the aggregate on any oneparticular issue (including computerized research) requires prior approvalfrom Citizens. Fees submitted for any such research conducted withoutprior approval from Citizens will not be honored.7.3 Legal Research ResultsA copy of all case law resulting from such research and relied upon by theattorney in forming his / her legal opinion should be provided to Citizens.8. REPRESENTATION OF INSURED IN DEFENSE OF THIRD PARTYMATTERNothing contained herein shall interfere with the independent professionaljudgment, nor should it be construed to limit the contractual or ethical obligations,of counsel acting on behalf of an insured in defense of a third party matter.The Firm is expected to comply with all reasonable requests by Citizens forinformation and documentation provided that any such documents or informationdeemed privileged or intended by the insured to be confidential shall not bedisclosed without prior consent from the insured.9. AUDIT / FILE REVIEW9.1 Office of Internal AuditorCitizens’ enabling statute establishes the Office of the Internal Auditor(“OIA”). Through its OIA, Citizens has the right to review any of the Firm’sbusiness books, works, or documents specifically related to workRFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 55 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICESperformed on behalf of Citizens, in case of an audit or investigation.Citizens shall provide to the Firm reasonable written notice of at leastthree (3) business days. The Firm shall not unreasonably delay or inhibitCitizens’ right to review as set forth in this paragraph.9.2 Associated FeesIn addition, Citizens reserves the right to review all charges for servicesand disbursements pertaining to any legal services performed on behalf ofCitizens. Citizens reserves the right to conduct on-site audits and filereviews consistent with the Firm’s ethical obligations and in a manner thatwill not compromise the attorney-client or work product protectionassociated with the file. The Firm shall comply with all reasonablerequests for information and documents, provided that such documents orinformation are not privileged or intended by an insured in a third partymatter to be confidential. In such situations, Citizens must obtain theconsent of the insured in the third party matter.9.3 Document RetentionThe Firm shall maintain for review by Citizens any documentation,receipts, files, invoices and time-keeping records in support of alldisbursements for three (3) years after the file is closed by the Firm.Citizens will not honor fees or expenses associated with audit preparation,proceedings or resolution, unless the expenses are requested and preauthorizedby Citizens (i.e., copying services, delivery services, etc.).9.4 Audit ResultsAudit results may be discussed with the Firm during the visit. Any billingissues identified will be brought to the Firm’s attention for review andcomment. The Firm will be required to implement corrective measures tobring the billing practices into compliance with Citizens’ policies andprocedures. Citizens will not honor fees or expenses associated with theimplementation of any such corrective measures.10. PUBLIC COMMENT / MEDIA RELATIONSUnless specifically authorized by Citizens’ Legal Department or SeniorManagement, the Firm shall not comment publicly on any matter associated withrepresentation on behalf of Citizens or Citizens’ insureds. Citizens will be solelyresponsible for responding to any external inquiries. All such inquiries must beimmediately reported to Citizens.11. TERMINATION OF SERVICES11.1 Termination of AssignmentCitizens and the Firm may each terminate a specific assignment, or allassignments held by the Firm, at any time upon advance written notice.RFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 56 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICESCitizens may also reassign any matter at any time upon advance writtennotice.11.2 Receipt of Termination of AssignmentAfter notice is received as to the termination of an individual assignment,or all assignments, (1) the Firm will cease to render services to Citizens assoon as allowed by applicable law and ethical and/or court rules, whichmay include court approval for withdrawal from litigation, and (2) Citizenswill take all steps necessary to relieve the Firm of any obligation toperform further, including retention of substitute counsel.RFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 57 of 68

ATTACHMENT “G”CITIZENS GUIDELINES FOR LEGAL SERVICES12. Appendix A12.1 Clerical / Administrative TasksThe following tasks, clerical and administrative functions are consideredoverhead and not billable to Citizens:Open / Create fileA) Organize file materials or recordsB) File / Index / Log file materials or recordsC) Prepare / Organize file materials or records (including in preparation formeetings, hearings, conferences, depositions, or trials)D) Bates stampingE) Order recordsF) Retrieval of file materials or recordsG) Pick up / Delivery of file materials or recordsK) Photocopying documentsL) Mailing / Faxing / Emailing documentsM) Posting correspondence, pleadings or documents to online systemsutilized by CitizensN) Telephone calls associated with arranging or follow-up for records to beproduced in response to Subpoena or discovery requestO) Data entry functionsP) Scheduling functions (including meetings, hearings, depositions,conferences)Q) Calendaring functionsS) Coordinating functions (including meetings, hearings, conferences,depositions, or trials)T) Telephone calls associated with scheduling or coordinating functionsU) Travel arrangementsV) Transportation arrangementsW) Closing a fileRFP No.: 10-0067 September 15, 2010Attachment “G” – Guidelines for Legal Services Page 58 of 68

ATTACHMENT “H”OUTSIDE COUNSEL LEGAL SERVICES EVALUATIONOutside CounselLegal Services Evaluation Form(Rev. 02/09/10)_____________________________________________________________________________________________MatterName:__________________Claim#:______________________CaseManager:________________Outside CounselFirm:___________________LeadAttorney:________________EvaluationDate:__________________Evaluator:______________Matter Type: Appeal – Breach ofContract – Class Action – DeclatoryAction –Subrogation – Petition toAppoint/CompelSub-Case Type:1 st Party Property: CAT – Fire –Sinkhole – Theft - Tile – Vandalism- Water3 rd Party Liability: Bodily Injury –PropertyInsured’s/Claimant’sPre-Suit Demand: ___________Citizens’ Pre-Suitestimate/offer:______________Date Assigned to Firm:_______Date of Loss:_______________ResolutionDate:____________________Type of Resolution: Dismissal -Settlement – Summary Judgment -Trial – AppealSettlement / JudgmentAmount:___________________Budget Amount: ____________Total Amount Billed:_________RFP No.: 10-0067 September 15, 2010Attachment H – Outside Counsel Legal Services Evaluation Page 59 of 68

ATTACHMENT “H”OUTSIDE COUNSEL LEGAL SERVICES EVALUATIONBrief Description of underlying claim:---------------------------------------------------------------------------------------------------Total ScoreI. Compliance:II. Postings:III. Performance:CommentsStrengths:Opportunities for Improvement:Recommendations:RFP No.: 10-0067 September 15, 2010Attachment H – Outside Counsel Legal Services Evaluation Page 60 of 68

ATTACHMENT “H”OUTSIDE COUNSEL LEGAL SERVICES EVALUATIONAdditional Comments:Evaluation DetailsI. Compliancewith LegalServices’GuidelinesAssignmentScoreYes (+1)No (-1)N/A (0)PostedinVisibilityYes (+1)No (-1)N/A (0)CommentsAcknowledgmentw/in 5 business daysConflicts CheckReportingInitial Report w/in 30days of assignmentRFP No.: 10-0067 September 15, 2010Attachment H – Outside Counsel Legal Services Evaluation Page 61 of 68

ATTACHMENT “H”OUTSIDE COUNSEL LEGAL SERVICES EVALUATIONPre-MediationReport 30 daysbefore mediationPre-Trial Report 30days before trialPost-Trial Reportw/in 5 days after trialDeposition SummaryPrior ApprovalMotion for SanctionsFraud / MaterialMisrepresentationAllegationsCounterclaimMotion for SummaryJudgmentMotion to CompelRetention of ExpertsProposal forSettlementBilling ProceduresSubmit timelyBudgetRFP No.: 10-0067 September 15, 2010Attachment H – Outside Counsel Legal Services Evaluation Page 62 of 68

ATTACHMENT “H”OUTSIDE COUNSEL LEGAL SERVICES EVALUATIONSubmit invoices on30 day cycleRevise Budget asappropriateProvide meaningful,detailed descriptionof tasks performedSubmit supportingdocumentation forexpensesFinal Bill submittedtimelyII. Postings toCitizensAll PleadingsScoreYes (+1)No (-1)CommentsAll Discoveryrequests andresponsesAll significantcorrespondenceRFP No.: 10-0067 September 15, 2010Attachment H – Outside Counsel Legal Services Evaluation Page 63 of 68

ATTACHMENT “H”OUTSIDE COUNSEL LEGAL SERVICES EVALUATIONIII. Law FirmPerformanceLegal Judgmentand SkillsEffectively identifiesand analyzes thelegal issues whichneed to beaddressedAccurately assessesthe degree of legalriskMakes decisionsandrecommendationsbased on accuratelegal and factualanalysisLitigation PracticeAccurately assessesthe case in a timelymannerNarrows the casethrough motionpracticeManages discoveryand documentproductioneffectively andefficientlyObtains timely andcomplete discoveryresponses fromopposing partyDiscovery deadlinesmet without need forunnecessaryextensionsDemonstratesScore1- Poor 3 - Good2 – Fair 4 - ExcellentCommentsRFP No.: 10-0067 September 15, 2010Attachment H – Outside Counsel Legal Services Evaluation Page 64 of 68

ATTACHMENT “H”OUTSIDE COUNSEL LEGAL SERVICES EVALUATIONeffectiveness insettlement offersand negotiationsClient PartnershipCommunicatesstatus routinelywithout having to beaskedImplements directionor instructions fromLitigation SpecialistProvides updates ofall significantdevelopments in atimely mannerResponds promptlyto LitigationSpecialist’s requestfor assistanceCandidly andeffectively presentsa complete andobjective evaluationSpecificallyevaluates strategicdirection provided byLitigation SpecialistDemonstrates goodjudgment in knowingwhen to challengeLitigation Specialist’srecommendation ordecisionExplanationprovided if directionof LitigationSpecialist notfollowedProvides LitigationSpecialist with aclear, concise andcomplete analysis oflegal risks and stepsto manage risksRFP No.: 10-0067 September 15, 2010Attachment H – Outside Counsel Legal Services Evaluation Page 65 of 68

ATTACHMENT “H”OUTSIDE COUNSEL LEGAL SERVICES EVALUATIONappropriatelyDevelops soundalternatives to helpLitigation Specialistaccomplish businessobjectives within thelaw and regulationsDemonstrates a realcommitment toachieving neededresults in a timelymannerCost EffectivenessCompletes tasks ontime and on budgetDemonstrateseffective andefficient use ofdiscoveryRetains onlynecessary expertsand controlsexpensesOverall Law FirmRatingEvaluation of firm’soverall performanceRFP No.: 10-0067 September 15, 2010Attachment H – Outside Counsel Legal Services Evaluation Page 66 of 68

ATTACHMENT “H”OUTSIDE COUNSEL LEGAL SERVICES EVALUATIONScore SheetFormulaScoreI. Compliance withLegal Services’GuidelinesTotal Score / # of ApplicableCategories = %II. Postings to Citizens Total Score / 3II. Law FirmPerformanceLegal Judgment and SkillsLitigation PracticeClient PartnershipCost EffectivenessAverage of score for eachsectionRFP No.: 10-0067 September 15, 2010Attachment H – Outside Counsel Legal Services Evaluation Page 67 of 68

ATTACHMENT “I”CLAIMS LEGAL SERVICES AGREEMENTClaims Legal Services ContractForClaims Legal ServicesRFP No.: 10-0067Citizens Property Insurance Corporation Purchasing Department09/06/2010Vendor should complete and sign the Contract and return with your Proposal.RFP No.: 10-0067 September 15, 2010Attachment “I” – Claims Legal Services Contract Page 68 of 68

Legal Department101 N. Monroe Street, Suite 1000Tallahassee, FL 32301Claims Legal Services ContractThis Contract, dated:establishes the terms and conditions of the Contract for legal services by and between:Citizens Property Insurance Corporation (“Citizens”);and the following law firm(the “Firm”):1. Scope of Engagement: The scope of the Firm’s engagement is as set forth in this belowand any other written communication by Citizens authorizing the Firm to perform legalservices under this Contract:Service Area(s) for which firm is authorized to provide claims legal services onbehalf of Citizens:First Party Property (including EUO) ____ Yes ____ NoThird Party Liability (including EUO) ____ Yes ____ NoAppeals ____ Yes ____ NoSubrogation ____ Yes ____ No2. Fees and expenses:a. Rates for Service. Citizens hereby approves the following legal billing rates forthe approved Service Area(s) listed above. Any changes in the hourly rates (oralternative fee arrangements) must be pre-approved by Citizens in writing;unilateral rate increases will not be honored.First Party Property (Hourly Rate):Partner Associate ParalegalGeneral MattersComplex MattersSpecial ProjectsThird Party Liability (Hourly Rate):Partner Associate ParalegalGeneral MattersComplex MattersContract between Citizens andPage 1 of 9Contract No.: 10-10-0067- (Version 2010.08.24)

Special ProjectsEUO Assignments (Flat Fee)ServiceFlat FeeExamination of one (1) person $1,500Examination of two (2) persons $2,000Examination of more than two (2) $500 each additional personpersonsAppeals (Hourly Rate):Appellate MattersPartner Associate ParalegalSubrogation (Contingency Fee):Pre-Suit In Litigation AppealsRecovery AmountLess than $10,000$10,001 - $50,000$51,000 - $99,000$100,000 +b. Costs and disbursements. If (and to the extent) that the Contract provides forCitizens to reimburse Vendor’s expenses, Vendor has read and agrees to complywith Citizens’ Travel and Travel Reimbursement Policy For Non CitizensEmployees, as currently in effect and amended in the future, except that “MealReimbursement” is replaced with “Consistent with this policy, it is expected thatexpenses for meals will be both reasonable and appropriate”. Citizens’ TravelPolicy can be found at www.citizensfla.com/about/purchasing-policies.cfm.3. State Government Entity: The Firm acknowledges that Citizens is established pursuantto its enabling statute, F.S. 627.351(6), and subject to certain, but not all, laws applicableto state government entities.a. Code of Ethics: Firm has read and agrees to comply with the applicable portionsof Citizens’ Code of Ethics, as currently in effect and amended in the future, andexecute a Conflict of Interest Disclosure Form as specified by Citizens.b. Public Records: Firm acknowledges that Citizens is subject to Chapter 119,Florida Statutes, public record requests (“PRR”); therefore, any informationprovided to Citizens may fall within the disclosure requirements of Chapter 119,Florida Statutes. Firm must clearly label and mark each page or section ofinformation provided to Citizens in connection with this Contract that it considersTrade Secret, or otherwise confidential or exempt from Chapter 119, and s. 24(a),Art. I., State Const. (“Firm’s Confidential Information”).If Citizens receives a PRR or request from any regulatory or legislative entityregarding Firm’s Confidential Information it shall promptly notify Firm inContract between Citizens and Page 2 of 9Contract No.: 10-10-0067- (Version 2010.08.24)

writing, or electronically. The parties agree (to the extent permitted by law) thatCitizens shall not produce Firm’s Confidential Information unless authorized byFirm, or by order of a Court of competent jurisdiction. In the event a legalproceeding is brought to compel the production of Firm’s ConfidentialInformation, the parties agree that Citizens is authorized to deliver Firm’sConfidential Information to the Court or other legal tribunal for disposition. IfFirm continues to assert in good faith that Firm’s Confidential Information isconfidential or exempt from disclosure or production pursuant to Chapter 119,Florida Statutes, then Firm shall be solely responsible for defending its position,or seeking a judicial declaration. Nothing in this Contract shall create anobligation or duty for Citizens to defend or justify Firm’s position. Firm alsoagrees to indemnify and hold harmless Citizens for any award, damages, fines,fees, penalties or impositions of whatsoever nature or kind and all costs and fees,including attorney’s fees, incurred by Citizens in connection with this section.If Firm receives a PRR that is in any way related to this Contract, Firm agrees toimmediately notify Citizens’ Record Custodian and forward the PRR to Citizens’Record Custodian for logging and processing. Citizens’ Records Custodian’semail address is: Recordsrequest@citizensfla.com. Citizens shall be the partyresponsible for coordinating the response and production to the PRR. Firm is notauthorized to unilaterally respond to a PRR without express written direction fromCitizens.Firm agrees to assist Citizens in responding to any PRR in a prompt and timelymanner as required by Chapter 119, Florida Statutes.c. Right to Audit Records: Citizens, and other government entities as required bylaw such as the State of Florida Auditor General, shall have the right to reviewand audit any of Firm’s Records related to this Contract, upon reasonable writtennotice of at least three (3) business days. Firm shall not unreasonably delay orinhibit Citizens’ right to audit as set forth in this section. Firm agrees toreimburse Citizens for the reasonable costs of investigation incurred by Citizensfor investigations of Firm’s compliance with this Contract which results intermination for cause or in regulatory or criminal penalties in connection withperformance of the Contract. Such costs shall include, but shall not be limited to:salaries of investigators, including overtime; travel and lodging expenses; andexpert witness and documentary fees. Firm shall not be responsible for any costsof investigations that do not result in termination for cause or in regulatory orcriminal penalties in connection with performance of the Contract.d. Immunity: Except for breach of contract claims under this Contract, nothing inthis Contract shall be deemed to waive the Citizens’ immunity as set forth in itsenabling statute and as otherwise provided by law.4. Guidelines for Legal Services: The Firm shall be subject to Citizens’ “Guidelines forLegal Services,” as subsequently amended, upon receipt by the Firm of such guidelinesor amendment, subject to any modifications thereto agreed to in writing by Citizens andContract between Citizens and Page 3 of 9Contract No.: 10-10-0067- (Version 2010.08.24)

the Firm, which modifications shall apply as of the date agreed to by Citizens and theFirm.• Price Escalation and De-Escalation: Pricing is fixed for the base term of theContract (five (5) years). Any escalation/de-escalation in prices will be made attime of contract renewal by mutual agreement. Request for price increases mustbe made by awarded Vendor in writing at least 60 days in advance of contractexpiration. Total price adjustment shall not be applied retroactively.Additionally, Citizens reserves the right to request and receive de-escalation(reduction) in price at time of renewal.5. Assignment / Subcontracting: Firm may not assign or subcontract its rights orobligations without first obtaining the written permission of Citizens.6. Firm’s Records: Firm shall retain Firm’s Records for the longer of (1) records retentionrequirements imposed on attorneys by the Florida Bar or other applicable law, (2) threeyears after the expiration of the Contract or (3) the period required by the GeneralRecords Schedules maintained by Citizens Retention Policy. Citizens’ Record RetentionPolicy can be found at www.citizensfla.com/about/purchasing-policies.cfm.7. Security and Confidentiality: Firm agrees and acknowledges that certain informationdisclosed by Citizens to Vendor in the course of this Contract is confidential and exemptfrom Florida Public Record laws contained in Chapter 119, Florida Statutes, and maycontain other proprietary or Trade Secret information. Both parties further agree that thisinformation, together with any data and documentation, including all nonpublic personalinformation such as to be subject to the provisions of Section 627.351(6), Fla. Stat., and15 U.S.C. §§6801 et seq., and further including, without limitation, all information, data,and documentation related to manuals, lists, policyholder information, operating andother systems or programs, business practices or procedures, insurance policies,claimants or claims, and business, governmental, and regulatory matters of Citizens areconfidential (“Citizens’ Confidential Information”). Vendor shall not use, disclose,communicate, possess, transmit, copy or reproduce any of Citizens’ ConfidentialInformation, and shall not permit any third parties or business entities to disclose,distribute or otherwise transmit Citizens’ Confidential Information, in whole or in part, inany manner. Vendor agrees to exercise a high level of care sufficient to protect Citizens’Confidential Information, documents, files, system programs, or data in any form fromunauthorized disclosure. The sale, disclosure, duplication, or unauthorized use of thisinformation is grounds for immediate termination of the Contract as a Material Breach.This provision shall not apply to documentation, information or material that: (1) ispublicly available through no fault of Vendor; or (2) Vendor developed independentlywithout relying in any way on Citizens’ Confidential Information. This section shallsurvive the termination or expiration of the Contract, regardless of the reason fortermination or expiration. To insure confidentiality, Vendor shall take appropriate stepsas to its personnel, agents, and subcontractors. The warranties of this provision shallsurvive the Contract.The Firm acknowledges and agrees that Citizens will suffer irreparable harm and thatmonetary damages will not be adequate to compensate Citizens, in the event that theContract between Citizens and Page 4 of 9Contract No.: 10-10-0067- (Version 2010.08.24)

Vendor fails to comply with the terms of the Contract and specifically the provisions ofthis section. Accordingly, in addition to any other remedies available to it at law or inequity, Citizens shall be entitled to injunctive relief to enforce the provisions of thissection and the Contract.The Firm is not subject to any action by Citizens if disclosure of any such information ordocuments is at the direction of Citizens when necessary and appropriate to (1) service aninsurance claim, (2) respond to a discovery request in a litigated matter, or (3) complywith a Court Order.8. Indemnification: Firm shall be fully liable for the actions of its agents, employees,partners, or subcontractors, and shall fully indemnify, defend, and hold harmless Citizens,and its officers, members of the Board of Governors agents, and employees, from suits,actions, damages, and costs of every name and description, including attorneys’ fees,arising from or relating to personal injury and damage to real or personal tangibleproperty alleged to be caused in whole or in part by Vendor, its agents, employees,partners, or subcontractors, provided, however, that Vendor shall not indemnify for thatportion of any loss or damages proximately caused by the negligent act or omission ofCitizens.Further, Firm shall fully indemnify, defend, and hold harmless Citizens, and its officers,members of the Board of Governors, agents, and employees from any suits, actions,damages, and costs of every name and description, including attorneys’ fees, arising fromor relating to violation or infringement of a trademark, copyright, patent, Trade Secret orintellectual property right.Firm’s obligations under the preceding two paragraphs of this section with respect to anylegal action are contingent upon Citizens giving Vendor (1) written notice of any actionor threatened action, (2) the opportunity to take over and settle or defend any such actionat Vendor’s sole expense, and (3) assistance in defending the action at Vendor’s soleexpense. Vendor shall not be liable for any cost, expense, or compromise incurred ormade by Citizens in any legal action without Vendor’s prior written consent, which shallnot be unreasonably withheld.9. Malpractice Insurance: The Firm shall maintain in effect, at its sole expense, legalmalpractice insurance of such a type and with such terms and limits as may be reasonablyassociated with the provision of services under this Contract. Upon request, the Firmshall provide Citizens with the certificates of insurance.10. Compliance with Law: Firm will comply with all applicable laws, ordinances, rules,and regulations governing Firm’s duties or responsibilities under this Contract. Firm isresponsible for assuring that all persons who perform services for Citizens under thisContract are properly licensed and are in compliance with all applicable laws governingtheir conduct.11. Name / Logos: Without the prior written consent of Citizens, Firm (including Firm’sauthorized subcontractors, agents or assignees) shall not publish or use Citizens’ name,logo, or symbols from which Citizens’ name may be reasonably inferred or implied. Thisincludes but is not limited to using Citizens’ name, logo or symbol in any research,Contract between Citizens and Page 5 of 9Contract No.: 10-10-0067- (Version 2010.08.24)

solicitations, advertisements, promotions, or any other publicity matter relating directlyor indirectly to this Contract. Additionally, without the prior written consent of Citizens,Firm shall not disclose the existence of this Contract, and shall not use this Contract formarketing or business reference purposes.12. Professional Code: The Firm shall ensure that its personnel providing services underthis Contract comply with applicable standards of ethics and rules of professionalresponsibility, including the Florida Rules of Professional Conduct promulgated by theFlorida Supreme Court for attorneys practicing in Florida. Such standards include rulesrelated to conflicts of interest and confidentiality that are intended to protect Citizens andCitizens information.13. Modification of Terms: The Contract may only be modified or amended upon mutualwritten agreement of Citizens and Firm. No oral agreements or representations shall bevalid or binding upon Citizens or Firm. No alteration or modification of the Contractterms, including substitution of product, shall be valid or binding against Citizens. Firmmay not unilaterally modify the terms of the Contract by affixing additional terms toproduct upon delivery (e.g., attachment or inclusion of standard preprinted forms, productliterature, “shrink wrap” terms accompanying or affixed to a product, whether written orelectronic) or by incorporating such terms onto Firm’s order or fiscal forms or otherdocuments forwarded by Firm for payment. Citizens' acceptance of product orprocessing of documentation on forms furnished by Firm for approval or payment shallnot constitute acceptance of the proposed modification to terms and conditions.14. Waiver: The delay or failure by a party to exercise or enforce any of its rights under thisContract shall not constitute or be deemed a waiver of the party’s right thereafter toenforce those rights, nor shall any single or partial exercise of any such right preclude anyother or further exercise thereof or the exercise of any other right.15. Jurisdiction and Venue: This Contract shall be deemed to have been made in the Stateof Florida and shall be subject to, and governed by, the laws of the State of Florida, andno doctrine of choice of law shall be used to apply any law other than that of the State ofFlorida. Each party hereby irrevocably consents and submits to the exclusive jurisdictionof the State courts sitting in Tallahassee, Leon County, Florida, for all purposes underthis Contract, and waives any defense to the assertion of such jurisdiction based oninconvenient forum or lack of personal jurisdiction. The parties also agree to waive anyright to jury trial.16. Term: The contract term is for five (5) years, and at the discretion of Citizens, have two(2) multiple renewal periods of one (1) year. The Effective Date will begin with theexecution of this Contract by Citizens.17. Termination:a. Citizens may cancel or terminate this Contract at any time upon advance writtennotice to the Firm. After receiving such notice, the Firm will cease to renderservices to Citizens as soon as allowed by applicable law and ethical and/or courtrules, which may include court approval of our withdrawal from litigation.Contract between Citizens and Page 6 of 9Contract No.: 10-10-0067- (Version 2010.08.24)

. The Firm reserves the right to withdraw from its representation if, among otherthings, Citizens should fail to honor the terms of its engagement, fail to cooperateor follow the Firm’s advice on a matter the Firm considers material, or if anycircumstance arises that would in our view render the Firm’s continuingrepresentation unlawful, unethical, or undesirable.c. If the Firm elects to withdraw, and in the event of any other termination, Citizenswill take all steps necessary to relieve the Firm of any obligation to performfurther, including the retention of substitute counsel.d. A termination of the Firm’s services will not affect Citizens’ responsibility forpayment of legal services rendered and other charges incurred both beforetermination and afterwards in connection with an orderly transition of the matter,including fees and other charges arising in connection with any transfer of files toCitizens or to other counsel.18. Dispute Resolution: Firm acknowledges that Citizens in not an agency for purposes ofthe Florida Administrative Procedures Act, chapter 120 of the Florida Statutes. Prior tocommencing any litigation relating to the terms of the Contract the parties agree that theywill attempt to resolve any dispute through non-binding mediation. The parties agreethat, if a disagreement arises as to the terms or enforcement of any provision of thisContract, each party shall in good faith attempt to resolve the disagreement and exhaustall applicable administrative remedies prior to the filing of a lawsuit or commencing alegal action.19. Warranty of Authority: Each person signing the Contract warrants that he or she isduly authorized to do so and to bind the respective party to the Contract.20. Warranty of Ability to Perform: Each party warrants that, to the best of its knowledge,there is no pending or threatened action, proceeding, or investigation, or any other legalor financial condition, that would in any way prohibit, restrain, or diminish the party’sability to satisfy its Contract obligations.21. Force Majeure:a. Essential Contracts: Because of the nature of Citizens business, Citizens requiresthat certain services be performed during or immediately after catastrophic events,which might otherwise be considered forces majeure. Therefore, force majeure willnot constitute an excuse for non-performance by Firm if the contract is consideredand designated as an essential contract to Citizens’ operations. If there is nodiscernible contract designation, the contract shall be considered as an essentialcontract to Citizens’ operations.b. Other Contracts: For all other contracts the following paragraphs shall apply relatedto forces majeure.A party (an “Affected Party”) shall not be responsible for delay resulting from itsfailure to perform, if neither the fault nor the negligence of the Affected Party or itsemployees or agents contributed to the delay, and the delay is due directly to acts ofGod, wars, acts of public enemies, fires, floods, or other similar cause wholly beyondthe parties control. In case of any delay an Affected Party believes is excusable, theContract between Citizens and Page 7 of 9Contract No.: 10-10-0067- (Version 2010.08.24)

Affected Party shall notify the other in writing of the delay or potential delay anddescribe the cause of the delay either: (1) within two calendar days after the causethat creates or will create the delay first arose, if the Affected Party could reasonablyforesee that a delay could occur as a result, or (2) if delay is not reasonablyforeseeable, within five calendar days after the date the Affected Party first hadreason to believe that a delay could result. THE FOREGOING SHALLCONSTITUTE AN AFFECTED PARTY’S SOLE REMEDY OR EXCUSEWITH RESPECT TO DELAY. Providing notice in strict accordance with thisparagraph is a condition precedent to such remedy. No claim for damages, other thanfor an extension of time, may be asserted against the Affected Party following theprovision in this paragraph.If the Affected Party’s performance is suspended or delayed, in whole or in part, dueto any of the causes described in this paragraph, after the causes have ceased to exist,the Affected Party shall perform at no increased cost. If the Citizens is the AffectedParty, Firm shall not be entitled to an increase in the Contract price or payment of anykind from Citizens for direct, indirect, consequential, impact or other costs, expensesor damages, including but not limited to costs of acceleration or inefficiency, arisingbecause of delay, disruption, interference, or hindrance from any cause whatsoever.If Firm is the Affected Party, then Citizens may: (1) accept allocated performance ordeliveries from Firm, provided that Firm grants preferential treatment to Citizens withrespect to products subjected to allocation; or (2) purchase from other sources(without recourse to and by Firm for the related costs and expenses) to replace all orpart of the products that are the subject of the delay, which purchases may bededucted from the Contract quantity; or (3) terminate the Contract in whole or in part.22. Contract Administrator: Citizens shall name a Contract Administrator during the termof this Contract whose responsibility shall be to maintain this Contract. As of theEffective Date, the Contract Administrator is:Lori Newman, Purchasing Department2101 Maryland CircleTallahassee, Florida 32303(850) 513-3795lori.newman@citizensfla.comCitizens shall provide written notice to Firm of any changes to the ContractAdministrator; provided, such changes shall not be deemed Contract amendments.23. Contract Managers: Each party will designate a Contract Manager during the term ofthis Contract whose responsibility shall be to oversee the party’s performance of itsduties and obligations pursuant to the terms of this Contract. As of the Effective Date,Citizens’ and Firm’s Contract Manager s are as follows:Citizens’ Contract ManagerContract between Citizens and Page 8 of 9Contract No.: 10-10-0067- (Version 2010.08.24)

Firm’s Contract ManagerNAME – TITLE________________________ADDRESS_____________________________PHONE________________________________EMAIL________________________________24. Execution in Counterparts: The Contract may be executed in counterparts, each ofwhich shall be an original and all of which shall constitute but one and the sameinstrument.25. Severability: If a court deems any provision of the Contract voice or unenforceable, thatprovision shall be enforced only to the extent that it is not in violation of law or is nototherwise unenforceable and all other provisions shall remain in full force and effect.26. Inconsistencies: This Addendum controls, to the extent of any inconsistencies with theengagement letter agreement, legal services agreement, or other agreement for legalservices that is being modified by this Addendum.Agreed and accepted:On behalf of Citizens Property InsuranceCorporation, by:On behalf of the Firm, by:Firm’s Name__________________________________Signature__________________________________Typed Name__________________________________Title__________________________________Date Signed__________________________________Signature__________________________________Typed Name__________________________________Title___________________________________Date SignedFirm Federal Employee Identification Number________________________________________Contract between Citizens and Page 9 of 9Contract No.: 10-10-0067- (Version 2010.08.24)