Urgent Action On Insurance Incentives Rebuffed By Louisiana Lawmakers
Monday, December 19th, 2022 Legislation & RegulationInsurance Commissioner Jim Donelon’s request to fast-track funding for an incentive program was rebuffed by state lawmakers this week, leaving the effort in limbo until the next legislative session starts in April.
Donelon had urged lawmakers to allow him to use $15 million in leftover premium tax revenue that the insurance department collects to kickstart the Insure Louisiana Incentive Program.
The effort was first launched in the years after Hurricane Katrina to lure property insurers to the state and get them off the rolls of Louisiana Citizens Property Insurance Co., the state-run insurer of last resort.
Donelon warned earlier this week that if Citizens doesn’t begin to trim its swollen roster of policyholders -- which now stands at 129,000 -- it will be forced to spend big on reinsurance in the spring when those contracts are generally negotiated.
State lawmakers agreed to revive the incentive program earlier this year but left it unfunded.
