The Louisiana Citizens Property Insurance Corporation, the state’s property insurer of last resort, says the Web site portal insurance agents use to authorize the transfer of policies to private insurers is slated to close June 15.
The Louisiana Legislature created the state’s Matching Surplus Program to reduce the number of property owners who have insurance coverage through Louisiana Citizens. Under the program, (created by Act 447 of the 2007 Regular Legislative Session) new or existing private insurance companies are encouraged to assume policies currently covered by Louisiana Citizens.
In 2007 the state authorized a $100 million fund to match grants for private insurance companies that agreed to begin writing policies in coastal areas. Through this process, Louisiana Citizens has been transferring, or depopulating, back to the private insurance market.
Louisiana began the depopulating process in 2008, by the end of that year, more than 40,000 policies had been removed from the insurer. The closure of the depopulation portal ends the third and final round of policy transfers through the incentive program.
Was this article valuable?
Here are more articles you may enjoy.