$45M plan to lure home insurers back to Louisiana approved by lawmakers; see next steps

Published: Feb. 03, 2023

By: Claire Sullivan, LSU Manship School News Service

Lawmakers met in a special session to create a $45 million plan to expand home insurance coverage in Louisiana. (Francis Dinh/LSU Manship School News Service)

The Legislature approved bills on Friday to spend up to $45 million to lure home insurers back to the state.

The next stop is Gov. John Bel Edwards’ desk. The governor called the special session at the heeding of the state insurance commissioner and is expected to sign both bills into law—one to appropriate the funds for the Insure Louisiana Incentive Program and the other to prevent insolvent or bankrupt companies from receiving any of the money.

House Bill 1 to appropriate the funds passed the Senate 37-1 and the House 91-8. House Bill 2 to allow only solvent companies to receive the funds passed the Senate unanimously Friday after passing the House on Thursday.

Insurance companies will apply for grants, which will range from $2 million to $10 million. The companies will be required to match the state funds dollar for dollar, and they will have to remain in the state for at least five years or to return the money.

The plan is modeled after an incentive fund created in the wake of Hurricanes Katrina and Rita in 2005.

The urgency of the insurance crisis drove legislators to address the issue this week instead of waiting until the regular legislative session begins on April 10.

Read more at WRKF

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