Insurance Commissioner Jim Donelon is directing insurance agents to notify Louisiana Citizens policyholders of the possibility they could find coverage with a private insurer. Donelon says SafePoint Insurance Company identified over 19 thousand Citizens policies that could be switched over to a private insurer.
“Communication. That is what I – that’s the one-word synopsis of what I am ordering agents to do.”
But Donelon says out of those 19 thousand Citizens policies, agents have only authorized fewer than eight thousand for depopulation out of Citizens. The insurance commissioner is concerned agents may be putting their own interests ahead of their policyholders.
“That reduces the commissions paid to agents. When they go from a more expensive coverage to a cheaper coverage, their commission is decreased. Representing a conflict.”
Citizens policyholders who could be taken out of Citizens should have received a notice by mail. Donelon says policyholders may be missing out on significant savings by getting out of Citizens
“Your policy is being asked for. You may or may not know that. Contact your agent or contact us and we’ll help you communicate with your agent.”
A lawsuit filed by Louisiana and other states that seeks to have FEMA’s Risk Rating 2.0 flood insurance rates declared illegal went before a federal judge yesterday in New Orleans.
Comments