FPCA: Insure Louisiana Incentive Program–Third Round of Grant Applications

The Louisiana Department of Insurance is currently accepting applications for the third round of grants in the Insure Louisiana Incentive Program authorized by the Louisiana Legislature earlier this year.  The application period is open from October 31, 2008 through December 31, 2008.

The Insure Louisiana Incentive Program provides grants ranging from $2 million to $10 million to qualified property insurance companies.  Some key requirements insurance companies must meet to qualify for the program include:

• Maintaining capital and surplus amounts of not less than $25 million
• Maintaining a risk-based capital ratio of 500%
• Proof of an existing certificate of authority or a simultaneously filed application for authority

Companies receiving grants will be subject to the following requirements:

• Net written premiums must be at least $2 for each $1 of combined insurer capital, which includes insurer allocated capital and the matching grant
• The property insurance written must be residential, commercial, mono-line or package property and include equal wind and hail coverage
• At least 25% of net written premiums must be from policyholders formerly insured by Louisiana Citizens and with 50% located in the 37 parishes included in the Gulf Opportunity Zone Act (the parishes most affected by hurricanes Katrina and Rita)
• By the end of the second year, at least 50% of net written premiums must be received from policyholders located in the 37 parishes included in the Gulf Opportunity Zone Act

A copy of the grant application is attached for your review. 

If you have any questions or would like additional information, please do not hesitate to contact Megan Grant at mgrant@cftlaw.com.