Insure Louisiana Incentive Program Opens 2nd Round of Applications

The Louisiana Department of Insurance (LDI) announced Monday that the second 30-day application period for insurance companies to apply for Insure Louisiana Incentive Program funding is open through May 25.

Insurance companies can apply at ldi.la.gov/insurela.

Eight companies are already admitted into the program, which offers matching grants to incentivize new and existing insurance companies to write residential and commercial policies in coastal areas, including writing policies out of Citizens.

A total of $3.15 million in grant funds is available to companies this application period. Approximately $42 million of $45 million was awarded to eight insurers following the first round of applications.

Nine insurers collectively asked for over $62 million in grant money in the opening application period, approximately $17 million more than the $45 million allocated to the program by lawmakers this spring.

“The Insure Louisiana Incentive Program is designed to offer immediate relief to consumers experiencing unaffordable rates for homeowners insurance, especially those in Louisiana Citizens,” said Donelon. “To make sure they are receiving quotes from all eight companies already participating, consumers should contact multiple agents, including independent agents.”

LDI reviews applications based on a company’s ability to meet solvency standards that are in line with standards required by the federally backed mortgage companies, the department said. According to LDI, the insurers will also be subject to enhanced solvency monitoring including, but not limited to, newly increased capital and surplus requirements, monthly reporting and in-depth reinsurance program reviews.

Source: LDI

Topics Louisiana