The Louisiana Department of Insurance (LDI) has opened the second round of the Insure Louisiana Incentive Program, which is designed to offer grants to insurers that write new policies in the state.
The application period began Sept. 1 and goes through Sept. 30. Approximately $13 million in grant funds is available during this application period. The first round of applications saw nearly $42 million of the available $45 million awarded to eight insurers.
Another $10 million was added to the remaining $3 million during the recent Louisiana Regular Session.
More than 28,000 policies have been written through the program, LDI said. SafePoint Insurance has also been approved to take more than 19,000 policies out of Louisiana Citizens during the upcoming round of depopulation. The assumption date for those policies eventually authorized by policyholders’ agents is October 1.
The top five parishes for new policies are Jefferson, Orleans, Terrebonne, St. Tammany and Lafayette.
“This program is designed to bring immediate relief to residents who can’t find a policy or are experiencing unaffordable rates, especially those in Louisiana Citizens,” Commissioner Jim Donelon said in a statement. “Getting policyholders out of Citizens is vital to Louisiana’s economic recovery, and I strongly encourage all Citizens policyholders to contact their agents and request to be notified if they have an opportunity to find another insurer in the private market at a lower premium.”
The program requires that participating insurers meet solvency standards that are in line with those required by federally backed mortgage companies. Insurers write new property insurance in Louisiana with net written premiums of at least a ratio of $2 of premium for each $1 of the total of newly allocated property insurer capital combined with $1 of the grant from the Incentive Program Fund.
Insurance companies that are interested in participating can apply at ldi.la.gov/insurela.
Source: LDI
Topics Louisiana
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