UPC Insurance clients have 30 days to replace policies with Louisiana Citizens

Insurance Commissioner Jim Donelon announced Monday that Louisiana Citizens will provide an additional 30 days after United Property & Casualty

Insurance company (UPC) policies cancel on March 29 for policyholders and their insurance agents to secure coverage in the private market or

bind a Citizens policy without losing coverage.

UPC policyholders who do not find a new homeowners policy before their UPC policy is canceled will be covered by Citizens for claims occurring

between their cancellation date and the end of the extension period if an agent binds the Citizens policy by that date. This extension does not

affect policyholders who find a new policy with an insurer other than Citizens.

"UPC policyholders should use this extra time to secure coverage with a private insurer before turning to Citizens," said Donelon. "I urge these

policyholders to immediately contact multiple agents, including independent agents, and begin shopping for a new policy."

Earlier last week, Donelon announced that participating insurers will receive credit toward the Insure Louisiana Incentive Program's grant

requirements for assuming UPC policies. Credit will also be given to companies who write policies for former UPC policyholders during the 30-day

period after cancellation.

UPC, a Florida insurer with additional Louisiana policy holders, was placed into liquidation by the Florida Office of Insurance Regulation and

Florida judicial system on Feb. 27 after its estimated losses from Hurricane Ian increased to $1.5 billion.

If you are a UPC policyholder, the LDI recommends you do the following:

Contact multiple agents, including both captive and independent agents, to obtain as many quotes as possible for a new policy.

Ask an agent to contact Citizens for a quote if you are unable to find a policy in the private market.

If you do get a Citizens policy, continue shopping around for a new policy as the LDI expects more insurers to begin writing this Spring following implementation of the Insure Louisiana Incentive Program. If you cancel and rewrite your Citizens policy with a private company, Citizens will refund any unearned premium.

If you have an open claim with UPC, that claim may or may not eventually be transferred to the Louisiana Insurance Guaranty Association (LIGA) for adjusting and payment. Continue contacting UPC about your claim unless you are notified it has been sent to LIGA.

In a related matter, on Monday, Congressman Clay Higgins introduced H.R. 1545, the Restoring Competitive Property Insurance Availability Act, which would protect insurance availability for Louisiana homeowners and business owners by encouraging insurers to continue coverage after a federally declared disaster.

Higgins' bill would amend the U.S. tax code and allow insurers to deduct income made in a disaster area for five years after a federally declared disaster. This provision would take effect after a major disaster declaration and would be limited to the impacted area. To qualify, providers must have been located within the impacted area and providing coverage prior to disaster.

"Insurance companies fleeing Louisiana after a natural disaster has been a problem for decades," said Higgins. "After recent disasters, Louisianans have witnessed insurers terminate policies and abandon the state, leaving many with limited insurance options while destroying their financial security. (This) bill would incentivize property insurance providers by greatly reducing the tax burden and encouraging them to remain in state after a natural disaster."