FOR IMMEDIATE RELEASE

December 29, 2021

SafePoint Insurance Co. Assumes Policies from Insolvent Insurers

The 19^th Judicial District Court in Baton Rouge has approved SafePoint Insurance Co.’s takeover of approximately 30,000 homeowners policies from two insolvent insurers, Access Home Insurance Co. and State National Fire Insurance Co., Insurance Commissioner Jim Donelon announced today.

The assumption of policies, retroactive to Dec. 1, means that 30,000 Louisiana households will not need to search for new insurance coverage or end up in Louisiana Citizens Property Insurance Corp., the state-sponsored insurer of last resort, after Access Home and State National Fire were placed into receivership in November.

The name of the insurer acquiring the policies had been confidential until Tuesday's court action making the plan official.

“Policyholders can start the new year knowing that their homes are protected by a viable insurance company,” Commissioner Donelon said. “I’m glad that we were able to find a proper landing spot for everyone in the private market and end this source of worry for policyholders.”

SafePoint acquired the policies for the price of the unearned premium. SafePoint, based in Florida, has been licensed in Louisiana since 2015 and has an A rating from Demotech. It is a tiny player in Louisiana with just $959,035 in direct written homeowners premium and 0.05% of the residential homeowners insurance market and will grow dramatically with this transaction. By contrast, Access Home and State National Fire had a combined $20.6 million in direct written premium and 1% of the homeowners insurance market in Louisiana.

As policies come up for renewal each month starting in March 2022, they will be re-written using SafePoint’s rates and policy forms. Policies that renew before then will continue to show Access Home or State National Fire as their insurance provider because of proper notice requirements and will be re-written as SafePoint policies upon renewal.

Customers who had been with Access Home or State National Fire for more than three years will retain their status under Louisiana’s unique three-year consumer protection statute, which makes it difficult for companies to non-renew or change rates or coverage on an individual basis. These transfers will occur even if the customer’s home was damaged in Hurricane Ida and has not yet been repaired.

SafePoint will have the option not to renew policyholders who had been with Access Home or State National Fire for less than three years in keeping with the limits of Louisiana’s three-year law. Those customers may need to find new coverage at their renewal time.

Louisiana Citizens offers coverage for any property owner who cannot get coverage from a private company, even for storm-damaged homes.

The Louisiana Insurance Guaranty Association (LIGA) is responsible for claims from Hurricane Ida and any other events prior to Dec. 1. SafePoint will cover any insurance claims made on or after Dec. 1.

Any Access Home or State National Fire customer with questions about their coverage should call SafePoint at 855-243-9740 or contact their insurance agent. They can also reach the receiver at 225-201-0107.

Any Access Home or State National Fire customer with questions about an insurance claim with a date of loss before Dec. 1, 2021, should contact LIGA at 225-277-7151 or go to https://www.laiga.org/. LIGA can pay claims of up to $500,000 per policyholder.

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.