Released: March 7, 2007

Commissioner of Insurance Jim Donelon says another company has applied for grant money under the Insure Louisiana Incentive Program’s second offering. American Integrity Insurance Company of Florida met the March 4 deadline. A second Florida company, Bankers Insurance Company, was granted an extension until March 18 to complete their application. American Integrity Insurance Company of Florida is new to Louisiana, but Bankers Insurance Company is currently licensed to write insurance in the State. The public invitation requesting grant applications was issued on February 4.

“This is further evidence that Louisiana is making great strides toward recovery from Hurricanes Katrina and Rita,” said Commissioner Donelon. “If both applicants meet the qualifications for the grant, we will have a total of seven new companies writing homeowners and commercial insurance policies under the Insure LA Incentive Program since the hurricanes of 2005, giving our people much needed competition that will provide relief in their insurance rates and more options for coverage.”

This is the second round of the $100 million economic development plan designed by the Governor and Louisiana Legislature in 2007 to attract more property and casualty insurers to Louisiana and to increase the private market capacity by 15 percent. Five insurance companies received grants totaling $29 million in the program’s first round that ended November 1, 2007. Those funds were awarded January 11, 2008. Because not all of the $100 million in Incentive Program grant money was awarded in the first round, the remaining $71 million was offered in this second offering to insurers.

Below are the grants requested by the above mentioned companies and the five companies awarded grants in the first grant offering of the Insure LA Incentive Program :

“Companies awarded grants in the first round have begun contacting Louisiana Citizens Property Insurance Corporation and agents,” said Commissioner Donelon. “Homeowners should begin hearing from their insurance agents with proposals to switch to new companies with lower rates in the near future. But, if you have been with your homeowners insurance company for more than three years, I advise you to stay with your existing company since Louisiana law prevents them from dropping your wind and hail coverage after an individual has been with them more than three years. This option may prove more beneficial than a rate reduction.”

Details of the Insure Louisiana Incentive Program are as follows:

• It provides matching funds to qualified property insurance companies from a $100 million state fund.

• Individual grants allocated are no less than $2 million nor in excess of $10 million.

• Insurers who were allocated a grant in response to the first invitation may apply for an additional grant up to a cumulative of the $10 million limit.

• At least 50 percent of the net written premium shall be received from policyholders whose property is located in the 37 parishes included in the federal Gulf Opportunity Zone Act in Louisiana.

• Insurers must also write 25 percent of the net written premium for policyholders whose property is insured by the Louisiana Citizens Property Insurance Corporation (Citizens).

As was done in the first round, a decision on grant awards will be made by Department of Insurance officials with all approved applications being forwarded to the Louisiana Joint Legislative Committee on the Budget for review and approval before any monies can be disbursed.

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