Louisiana Insurance Commissioner Jim Donelson has announced that Louisiana Citizens, the state’s insurer of last resort, will provide an additional 30 days of support after collapsed insurer United Property & Casualty Insurance Company’s (UPC) policies cancel on March 29 for policyholders and their insurance agents to secure coverage in the private market or bind a Citizens policy without losing coverage.
UPC policyholders who do not find a new homeowners policy before their UPC policy is canceled will be covered by Citizens for claims occurring between their cancellation date and the end of the extension period provided an agent binds the Citizens policy by that date, the commissioner said.
The extension does not affect people who find a new policy with an insurer other than Citizens.
UPC policyholders should use this extra time to secure coverage with a private insurer before turning to Citizens,” Donelon said. “I urge these policyholders to immediately contact multiple agents, including independent agents, and begin shopping for a new policy.”
Last week, Donelon announced that participating insurers would receive credit toward the Insure Louisiana Incentive Program’s grant requirements for assuming UPC policies. Credit will also be given to companies that write policies for former UPC policyholders during the 30-day period following cancellation, the Louisiana Department of Insurance said.
Florida-based UPC, which has about 30,000 Louisiana policies, was placed into liquidation by the Florida Office of Insurance Regulation and the Florida judicial system on Feb. 27, after its losses from Hurricane Ian increased to $1.5 billion. The company had previously sought to exit its personal lines business in Florida, Louisiana, New York and Texas.
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