A Fourth Louisiana Insurer Goes Belly-Up In Hurricane Ida’s Aftermath
Advocate, The (Baton Rouge, LA)
A fourth insurer has gone belly-up in Hurricane Ida's aftermath.
Louisiana's Department of Insurance took over Lighthouse Property Insurance Corporation in a court-ordered receivership last week, making it the fourth financially troubled insurer to require rescue in recent months.
The carrier, also known as Lighthouse Excalibur Insurance Company, has approximately 30,000 policies and 16,000 Ida-related claims. It covered 3.27% of the Louisiana's homeowners insurance market.
The Louisiana Insurance Guaranty Fund, a state-sponsored safety net also known as LIGA, promises up to $500,000 in payments for unpaid claims and $10,000 for premium refunds for policyholder's whose insurers go insolvent.
"Losing a fourth insurer to the unprecedented 2020 and 2021 hurricane seasons is unfortunate, but I'm proud of how effectively we have managed the insolvencies so far," Donelon said in a statement.
"For the first three failed insurers, we were able to quickly find an insurer to take over their policies on the same terms and conditions policyholders had under the failed companies, and I'm hopeful we will do the same for Lighthouse policyholders," he added.
A court-appointed receiver is now in charge of operating the company. Lighthouse is in rehabilitation, a form of receivership aimed at solving problems at the company. Policyholders will be contacted by the court-appointed receiver or their insurance agent about claims and whether in-force policies will be transferred to another insurer.
Policyholders with questions about their insurance coverage or the status of their policies should contact their insurer or insurance agent. Policyholders with questions about claims should contact LIGA at 225-277-7151 or www.laiga.org. Policyholders may also contact LDI at 800-259-5300 or www.ldi.la.gov for assistance.
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