Louisiana’s Division of Insurance coverage mentioned that it has organized further reinsurance to safe protection for policyholders affected by the failure of a variety of coastal property underwriters, giving extra time for the insurance policies to be positioned elsewhere, or assumed by Louisiana Residents.
The reinsurance has been organized in order that policyholders of insurers Lighthouse Excalibur, Maison and Southern Constancy could have a further 60 days to get their insurance coverage preparations positioned elsewhere, or from Residents itself.
Having initially been scheduled for cancellation from June twenty second, Louisiana Insurance coverage Commissioner Jim Donelon mentioned the coverage cancellation date for failed insurer Lighthouse Excalibur has been prolonged to June thirtieth now, following the Louisiana Division of Insurance coverage’s motion to safe further reinsurance.
Lighthouse Excalibur and Maison property insurance coverage insurance policies will now be cancelled on June thirtieth, whereas Southern Constancy insurance policies might be cancelled on July fifteenth, however protection will now be maintained by the 60 day time period due to the reinsurance association, it seems.
Policyholders will now obtain protection from Louisiana Residents for any claims occurring between their cancellation date and the date their agent binds a brand new coverage with Residents, if that date is not any later than 60 days following the unique coverage’s cancellation.
Suggesting Residents is the beneficiary of a further reinsurance association, secured simply to make sure it has the extra claims paying capability by this era of transition for policyholders.
What it successfully means is that Residents will now present protection for Lighthouse Excalibur and Maison policyholders from June thirtieth by August twenty eighth, and for Southern Constancy policyholders from July fifteenth by September thirteenth.
“Louisiana brokers have been working tirelessly to position policyholders with insurers following the announcement that three insurers are canceling insurance policies within the coming weeks,” Commissioner Donelon mentioned. “This initiative by Residents offers much-needed reduction and time for brokers and policyholders to get a brand new coverage in place whereas sustaining protection throughout hurricane season.”
As a reminder, Louisiana Residents augmented its reinsurance preparations with one other disaster bond this yr, having secured the brand new Catahoula II Re Pte. Ltd. (Collection 2022-1) cat bond transaction to offer it $175 million of capital markets backed reinsurance