Baton Rouge lawmakers have approved $42 million for eight companies seeking to enroll in the state’s newly funded incentive program. These companies include:- Allied Trust Ins. Co. – Cajun Underwriters Reciprocal Exchange – Constitutional Insurance Company – Elevate Reciprocal Exchange – Gulf States Ins. Co. – Safepoint Ins. Co.- Safeport Ins. Co.- Surechoice Underwriters Mutual ExchangeThe next step for insurers will be to enter into a cooperation agreement with the state. This is expected to go through soon, with companies writing guidelines in the state in about a month. “I would say just the fact that they write because a month ago, even now, there is almost nobody writing policies here unless you have a brand new house. They look at citizens to a very high degree,” said Ross Shales of Expert Insurance Agency. Insurance Commissioner Jim Donelon says he expects these companies to write about 90,000 policies in the state in hopes of getting people out of Louisiana Citizens Insurance. Louisiana Citizens is the state’s insurer of last resort and, by law, has rates that are above the market average. A 63 percent rate increase for Citizens was recently approved. Thousands of people have received policies from Citizens as insurers pounded the state in recent months have left. “This will benefit hundreds of thousands of policyholders across the state and will save thousands of homeowners from literally losing their homes. I couldn’t be happier with the speed and assistance we received in implementing this quick fix,” said Donelon. Donelon says he also expects another company to take advantage of the incentive program by summer, bringing the number of policies available to 120,000. Both Donelon and Shales agree that if you are a Louisiana resident, you should speak to your insurance agent about switching to these new policies now.
La.—
Baton Rouge lawmakers have approved $42 million for eight companies seeking to enroll in the state’s newly funded incentive program.
These companies include:
– Allied Trust Ins. co
– Mutual exchange of Cajun Underwriters
– Constitutional Insurance Company
– Increase mutual exchanges
– Gulf States Ins. co
– Secure point Ins. co
– Safeport ins. co
– Mutual exchange of Surechoice Underwriters
The next step for the insurers will be to conclude a cooperation agreement with the state. This is expected to go through soon, with companies writing guidelines in the state in about a month.
“I would say just the fact that they write because a month ago, even now, there is almost nobody writing policies here unless you have a brand new house. They look at Citizens very highly,” said Ross Shales of the Expert Insurance Agency.
Insurance Commissioner Jim Donelon says he expects these companies to write about 90,000 policies in the state in hopes of getting people out of Louisiana Citizens Insurance.
Louisiana Citizens is the state’s insurer of last resort and by law has rates above the market average. A rate hike for citizens of 63 percent was recently approved.
Thousands of people have received policies from Citizens as insurers have left the state in recent months.
“This will benefit hundreds of thousands of policyholders across the state and save thousands of homeowners from literally losing their homes. I couldn’t be happier with the speed and support we received in implementing this quick fix,” said Donelon.
Donelon says he also expects another company to use the incentive program by summer, bringing the number of policies available to 120,000.
Both Donelon and Shales agree that if you are a Louisiana resident, you should speak to your insurance agent about switching to these new policies now.
Source