Plan to lure more insurers to Louisiana passes House, heads to Senate

Published: Feb. 01, 2023

By: Claire Sullivan and Molly Ryan, LSU Manship School News Service

Senate President Page Cortez has voiced support for bills to create a fund to encourage home insurance companies to return to the state. (Francis Dinh/LSU Manship School News Service)

BATON ROUGE – The House on Wednesday approved bills to spend up to $45 million to
encourage insurance companies to return to the state and to prevent firms that went bankrupt or
were declared insolvent from using the money.

The House Appropriations Committee approved the two bills Tuesday before sending them to
the House, where representatives questioned state Insurance Commissioner Jim Donelon about
the details of the program.

The funds would be used to reduce the financial risk for insurance companies that resumed
writing home and other property insurance policies in the state.

Donelon emphasized the urgency of the program for the 125,000 residents covered by the
state’s insurer of last resort, the Louisiana Citizens Property Insurance Corp, as well as for
those who cannot afford insurance at all.

Without the program, Donelon said, “Thousands of people are going to lose their homes.”

The bill now goes to the Senate, where the president, Sen. Page Cortez, R-Lafayette, has
voiced support for it.

Read more at WBRZ

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