FOR IMMEDIATE RELEASE

October 10, 2019

Louisiana Insurance Commissioner Approves Donated Funds for Endowed Chair at ULM

Louisiana Insurance Commissioner Jim Donelon has granted his approval to the University of Louisiana Monroe Foundation to release $585,000 to the college to create an Endowed Chair position in the College of Business and Social Sciences. The College will provide the additional funding needed from other sources to create the Endowed Chair in Risk Management and Insurance.

The funds stem from a favorable court order on the dissolution of health maintenance organization AmCare Health Plans of Louisiana, Inc. (AmCare). Partial disbursement of the funds occurred in 2017. The total amount donated through the dissolution of AmCare was $3.5 million.

“I’m pleased to be delivering these funds and seeing them put to positive use in our communities,” said Commissioner Donelon. “The liquidation of AmCare started in 2002 and we have been able to turn the dissolution of this company into tangible support for many Louisiana students. It’s my hope that it will pave the way for the next generation of agents, adjusters and professionals.”

AmCare was ordered into liquidation and in 2011 the Louisiana Supreme Court issued an opinion in favor of the Louisiana Commissioner of Insurance allowing providers and policyholders of AmCare to receive their payments. Since that time, the Louisiana Department of Insurance and Receiver Marlon Harrison have worked to ensure that policyholders, providers and creditors were paid the principal and interest to which they were entitled.

The Louisiana Department of Insurance, as well as Texas and Oklahoma regulators, filed suit against the parent company of AmCare, Health Net Inc., over breach of contract and other torts. When the Louisiana Supreme Court ruled in their favor in 2011, each state was awarded compensatory and punitive damages. The law allows for the Commissioner of Insurance to disburse the funds according to a plan approved by the court. To view the 19th Judicial District Court Order approving the dissolution and distribution plan, please click here.

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting www.ldi.la.gov.