State lawmakers convene a special session today, aimed at alleviating the state’s current property insurance crisis. Since the hurricane hits of 2020 and ’21, more than 20 private property insurers have either gone insolvent or left then state; forcing tens of thousands of property owners to the state’s last-resort insurer Louisiana Citizens. Insurance Commissioner Jim Donelon says lawmakers will consider creating a $45-million incentive fund to help attract new insurers to write policies here…:
“Thousands of them are in danger of losing their homes if we don’t expedite this immediate fix.”
Donelon says a similar incentive worked after Katrina & Rita caused companies to exit the state, and he believes it will work again…but lawmakers must act quickly…:
“This is an emergency fix that I think will help many, many folks, and stabilize – if not lower the the cost of – our insurance marketplace,” he says.
State legislators are of different minds on Donelon’s plan and how well it might work. Jonesboro Representative Jack McFarland (R) says the post-Katrina incentive fund did work, but brought the state only five new private insurers and two of those have already left. He says that begs questions…:
“Of those five – the three that are remaining – how much business are they actually writing in south Louisiana; where the risk is much higher on the coastline for hurricane damage?”
But Marrero Representative Kyle Green (D) says he supports Donelon’s incentive package…:
“If he believes that it will help shore up the market, I’m for it and I’ll be voting for it.”
The insurance incentive plan is the sole item on the special session agenda. The session opens today and ends Sunday.
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