Mid-America Catastrophe Services

Another Insurer Deemed Insolvent Over Hurricane Ida Claims

 Monday, January 24, 2022

 Insurance Business

Another insolvent insurer in Louisiana has been placed into receivership, as the company continues to grapple with massive pending hurricane claims.

Louisiana insurance commissioner Jim Donelon placed Americas Insurance Company (AIC) into receivership in the 19th Judicial District Court.

AIC covered 1.31% of the state’s home insurance market, as of December 31, 2021, and had 24,000 policies in force and 13,000 pending insurance claims related to Hurricane Ida.

The Louisiana Insurance Guaranty Association (LIGA) will take over AIC’s claim payments.

‘My number one priority is protecting Louisiana policyholders, and my decision to place this company into receivership will help do that,’ said Donelon in a statement. ‘LIGA can pay up to $500,000 per claim, and they’re ready to handle what’s coming.’