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%.
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.