Louisiana Extends Policy Cancellation Date for Lighthouse Excalibur

Louisiana Insurance Commissioner Jim Donelon has extended the policy cancellation date for failed insurer Lighthouse Excalibur to June 30 following the Louisiana Department of Insurance’s (LDI) action to secure additional reinsurance for those policyholders through the end of this month. Lighthouse policies were originally scheduled for cancellation on June 22.

Insurance agents working to place Lighthouse Excalibur, Maison and Southern Fidelity policies now have an extra 60 days to place those policies while maintaining coverage for policyholders after cancellation. Lighthouse Excalibur and Maison policies will be canceled on June 30. Southern Fidelity policies will be canceled on July 15.

Policyholders whose insurance policy is canceled will be covered by Citizens for claims occurring between their cancellation date and the date their agent binds a new policy with Citizens if that date is no later than 60 days following the original policy’s cancellation. This extension does not affect policyholders who find a new policy with an insurer other than Citizens.

With this change, Citizens will effectively provide coverage for Lighthouse Excalibur and Maison policyholders from June 30 through August 28, and for Southern Fidelity policyholders from July 15 through September 13, as long as agents place policies with Citizens by the 60-day deadline and it is a risk that meets Citizens guidelines.

Source: LDI

Topics Louisiana