Insurance coverage corporations that tackle insurance policies from United Property & Casualty (UPC) earlier than they’re cancelled by the Florida judicial system on March 29 will obtain credit score in direction of the state’s Insurance coverage Louisiana Incentive Program’s grant necessities, in accordance with a Monday press launch.
“Insurance coverage corporations that utilized or plan to use for the Incentive Program will obtain credit score for UPC insurance policies taken previous to approval of their software,” the LDI mentioned.
“This motion is aimed toward serving to UPC policyholders lower your expenses by avoiding Residents and attaining our general objective of lowering Residents’ ebook of enterprise,” mentioned Louisiana Insurance coverage Commissioner Donelon.
“Decreasing Residents’ coverage depend stabilizes charges for its present policyholders and reduces the probability that each policyholder within the state shall be assessed within the occasion of a future Katrina or Ida-level disaster.”
Final 12 months, Louisiana’s insurer of final resort, Residents, was pressured to replace its IT programs in a bid to deal with tens of 1000’s of recent policyholders approaching board amid a spate of provider exits.
As of August, round 60,000 policyholders have been utilizing the state’s final resort insurer, with a dealer affiliation CEO having cautioned that this could possibly be set to double inside months. Louisiana’s Residents has higher-than-market charges by legislation.
UPC Insurance coverage insolvency
UPC, which had beforehand sought to run-off its enterprise in Texas, New York, Florida, and Louisiana, was positioned into liquidation after its Hurricane Ian losses elevated to $1.5 billion.
The insurer had deliberate to non-renew greater than 200,000 insurance policies throughout 12 states, with 30,000 of those in Louisiana, in accordance with a Friday LDI bulletin.
Until the insurance policies are picked up, they face cancellation. In Florida, Slide swept in to select up greater than 91,400 insurance policies from the bancrupt insurer in February.
At a particular session held in February, Louisiana lawmakers focused the state’s ailing owners’ insurance coverage market, leading to two Payments being signed into legislation. HB1 established a $45 million program to encourage insurers to write down new enterprise in Louisiana.
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