Six Companies Apply for Insure LA Incentive Grants C&D

Six Companies Apply for Insure LA Incentive Grants

Released November 6, 2007

Commissioner of Insurance Jim Donelon says six companies have applied for grant money under the Insure Louisiana Incentive Program. Commissioner Donelon adds that one other insurer has asked for an extension of the November 1 application deadline and another company that applied did not qualify. The public invitation requesting grant applications was issued on October 2.

Below are the six qualifying companies submitting grant applications, along with the amount of grant money requested and the date the company was issued a certificate of authority to write property insurance in Louisiana:

Company	Grant Requested	C of A
1. Occidental Fire & Casualty of North Carolina (Raleigh)	$10 million	1962
2. Companion Property & Casualty Ins. Co. (Columbia, S.C.)	$2 million	2005
3. ASI Lloyds (St. Petersburg, FL)	$5 million	new application, approval pending
4. Imperial Fire & Casualty Ins. Co. (Opelousas, LA)	$5 million	1990
5. Bankers Insurance Group (St. Petersburg, FL)	$5 million	1983
6. Southern Fidelity Insurance Co. (Tallahassee, FL)	$7 million	new application, approval pending
	TOTAL: $34 million

The Insure Louisiana Incentive Program authored by Representative Karen Carter was enacted through the passage of Act 447 of the 2007 Regular Session of the Louisiana Legislature and signed by Governor Kathleen Babineaux Blanco. The program is an economic development plan designed to attract more property and casualty insurers to Louisiana and to increase the private market capacity by 15%.

Commissioner Donelon explains the Insure Louisiana Incentive Program:

• It will provide matching funds to qualified property insurance companies from a $100 million state fund.

• During the initial application phase, individual grants allocated must be no less than $2 million nor in excess of $10 million.

• The Commissioner must allocate 20% of the total amount of funds available for grants to domestic insurers.

• A second invitation for grant applications will be issued by the Commissioner since all monies in the fund will not be allocated in the first invitation for grant applications.

• Insurers who have been allocated a grant in response to the first invitation may apply for an additional grant up to a cumulative of the $10 million limit.

• At least 50% of the net written premium shall be received from policyholders whose property is located in the 37 parishes included in the federal Gulf Opportunity Zone Act in Louisiana.

• Insurers must also write 25% of the net written premium for policyholders whose property is insured by the Louisiana Citizens Property Insurance Corporation (Citizens). And at least half of this 25% must be policyholders whose property is located in parishes included in the Gulf Opportunity Zone Act in Louisiana.

Commissioner Donelon says other rules and conditions for the program apply as outlined in the legislation and in Department of Insurance Regulation 82 posted on the Department's Web site at www.ldi.state.la.us. "Look for the Insure Louisiana Incentive Program logo under New Information on the front page of the Web site," Donelon adds. In addition to Regulation 82, the public invitation notice and application are also posted there.

Commissioner Donelon says that any company not currently licensed to write property insurance in Louisiana may apply for participation in the program conditioned on the submission of a simultaneous application for authority to write the eligible lines of business.

A decision on grant awards will be made by November 29, 2007 with all approved applications being forwarded to the Louisiana Joint Legislative Committee on the Budget for review and approval before any monies can be disbursed. The Department anticipates disbursing funds to the approved applicants by the first of January 2008.

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