Louisiana-licensed insurer to imagine 30,000 insurance policies from bancrupt firms

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The agreement to transfer the policies currently requires the approval of the 19th district court. The LDI cannot disclose the identity of the acquiring insurance company until both parties agree on the terms and conditions and obtain appropriate judicial approvals. The transaction is scheduled to take effect on December 01, 2021.

“The adoption of the policies is great news,” said Jim Donelon, Louisiana insurance commissioner. “Most policyholders don’t have to worry about finding new coverage. Your policies will be automatically transferred to the new insurer at the same rates and conditions as those offered by Access Home and State National Fire. “

The LDI announced in a press release that seven private insurers have signed up and expressed their interest in taking the policies out of the hands of Access Home and State National Fire – three of the companies even submitted official offers.

It was the Louisiana Insurance Guaranty Association (LIGA) that was originally called upon to pay outstanding claims from Access Home and State National Fire, both of which went bankrupt due to severe damage caused by Hurricane Ida. LIGA reported earlier this month that it had received around 8,000 applications from both companies. To cover the costs, the state-owned facility voted to bill other insurers operating in Louisiana a total of $ 100 million.

Continue reading: Two insurers go bankrupt

LIGA is responsible for claims from Hurricane Ida and all other events prior to December 1, according to a statement from the Louisiana Department of Insurance. In the meantime, the new company will take over claims made on or after December 1st.

LDI noted that the new insurer taking the policies has the option of not renewing policyholders who have been with Access Home or State National Fire for less than three years under the state’s three-year law. These customers may need to find new cover on their own, the department said.

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