Louisiana Homeowners to Get Cash From Insurance Incentive Fund

Louisiana homeowners could receive cash from the unused portion of an expired pot of government money used to lure insurance companies to the state, Insurance Commissioner Jim Donelon said.

Donelon estimated the checks would total $50 or more, though he’s not sure when the Department of Insurance will mail them.

The money comes from the remainder of a $100 million fund set up in 2007 as matching grants for private insurance companies that agree to begin writing policies in coastal areas.

The incentive program was aimed at improving homeowners’ access to private insurance after the 2005 hurricanes, and to reduce the number of policies written by the state’s “last-resort” insurer, Louisiana Citizens Property Insurance Corp.

The insurance department issued $29 million in grants, and state law says the remaining money should be divvied up and given to holders of homeowners policies.

Donelon, speaking to the Press Club of Baton Rouge, also said he plans to back legislation this spring that would help consumers by eliminating a health-insurance loophole that can produce bills from radiologists, pathologists and anesthesiologists.

Donelon said a small percentage of those specialists do not fall under health insurance plans, and their care can trigger bills on top of patients’ deductibles.

Donelon said he expects the bill to encounter opposition from the insurance and hospital industries.