Released: February 27, 2008
Commissioner of Insurance Jim Donelon says insurance companies
wanting to participate in the program that offers them up to
$10 million in matching grant money should get their applications
in soon. The last day to take part in the Insure Louisiana Incentive
Program is March 4, 2008. The application, public invitation
notice and regulation can be found on the Department of Insurance
Web site at www.ldi.state.la.us. Commissioner Donelon says look
for the Insure Louisiana Incentive Program logo.
This is the
second round of the $100 million economic development plan
by the Louisiana Legislature to attract more property
and casualty insurers to Louisiana and to increase the private
market capacity by 15%. Five insurance companies received grants
totaling $29 million in the program’s first round that
ended November 1, 2007. Because not all of the $100 million in
Incentive Program grant money was awarded in the first round,
the remaining $71 million is still available to insurers.
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. Details of the incentive
Program are as follows:
provides matching funds to qualified property insurance companies
a $100 million state fund.
grants allocated are no less than $2 million nor in excess
of $10 million.
who were allocated a grant in response to the first invitation
may apply for an additional grant up to a cumulative
of the $10 million limit.
least 50% of the net written premium shall be received from
whose property is located in the 37 parishes
included in the federal Gulf Opportunity Zone Act in Louisiana.
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.
As was done in the first round, a decision on grant awards will
be made by Department of Insurance officials 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.
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: www.ldi.state.la.us along with
the public invitation notice and application.