Louisiana insurance companies will need to cough up a combined $100 million to help cover the claims of two regional property insurers that have gone into insolvency due to losses from Hurricane Ida.
The Louisiana Insurance Guaranty Association (LIGA), a state-sponsored entity that serves as a safety net for policyholders of failed insurers, has voted to charge state-based insurers 1% of their net written premiums to assist with the funding, according to The Associated Press.
This comes after the Louisiana Department of Insurance placed financially troubled Access Home Insurance Co. and State National Fire Insurance Co. into receivership in mid-November. The two insurers provided coverage for about 28,000 homeowners.
LIGA said that it has already received at least 8,000 claims from the insolvent insurers’ policyholders.
“Our whole goal is to pay the people as timely and effectively as possible, but we’re in a bit of a transition period,” John Wells, LIGA’s executive director told AP. “We’re talking days and weeks, not months and years, to get people paid.”
