LA | In an effort to help policyholders of a recently failed insurer, United Property & Casualty Insurance Company (UPC), avoid having to obtain a policy with Louisiana Citizens, Insurance Commissioner Jim Donelon issued Bulletin 2023-02 on Friday notifying property and casualty insurers that they will receive credit toward the Insure Louisiana Incentive Program’s grant requirements for assuming UPC policies before they are canceled by the Florida judicial system on March 29.
Insurance companies that applied or plan to apply for the Incentive Program will receive credit for UPC policies taken prior to approval of their application.
“This action is aimed at helping UPC policyholders save money by avoiding Citizens and achieving our overall goal of reducing Citizens’ book of business,” said Commissioner Donelon. “Reducing Citizens’ policy count stabilizes rates for its current policyholders and reduces the likelihood that every policyholder in the state will be assessed in the event of a future Katrina or Ida-level catastrophe.”
UPC was placed into liquidation by the Florida Office of Insurance Regulation and Florida judicial system after its estimated losses from Hurricane Ian increased to $1.5 billion.
The Incentive Program will offer matching grants to incentivize new and existing insurance companies to write residential and commercial policies in coastal areas, including writing policies out of Citizens. The original Insure Louisiana Incentive Program was vital to the successful recovery of our property insurance market after hurricanes Katrina and Rita in 2005.