Application deadline is November 1, 2007
$100 Million Insurance Incentive Program Launched Today
Released: October 2, 2007
Today Commissioner of Insurance Jim Donelon issued the public invitation requesting applications for the Insure Louisiana Incentive Program. The program, enacted through the passage of Act 447 of the 2007 Regular Session of the Louisiana Legislature and signed by Governor Kathleen Babineaux Blanco, is an economic development plan designed to entice insurance companies to write more business in the state.
"The program is an effort to attract more property and casualty providers to our state and to increase the private market capacity by 15%," says Donelon.
Commissioner Donelon explains the Insure Louisiana Incentive Program:
- It will provide matching funds to qualified property insurance companies from a $100 million state fund.
- During the initial application phase, individual grants allocated must be no less than $2 million nor in excess of $10 million.
- The Commissioner must allocate 20% of the total amount of funds available for grants to domestic insurers.
- A second invitation for grant applications will be issued by the Commissioner in the event that all monies in the fund are not allocated as a result of the first invitation for grant applications.
- In the second invitation, the Commissioner shall not allocate individual grants less than $2 million nor in excess of $10 million.
- Insurers who have been allocated a grant in response to the first invitation may apply for an additional grant up to a cumulative of the $10 million limit.
- At least 50% of the net written premium shall be received from policyholders whose property is located in the 37 parishes included in the federal Gulf Opportunity Zone Act in Louisiana.
- Insurers must also write 25% of the net written premium for policyholders whose property is insured by the Louisiana Citizens Property Insurance Corporation (Citizens). And at least half of this 25% must be policyholders whose property is located in parishes included in the Gulf Opportunity Zone Act in Louisiana.
Commissioner Donelon says other rules and conditions for the program apply as outlined in the legislation and in Department of Insurance Regulation 82 posted on the Department’s Web site at www.ldi.state.la.us. "Look for the Insure Louisiana Incentive Program logo under New Information on the front page of the Web site," Donelon adds. In addition to Regulation 82, the public invitation notice and application are also posted there.
The deadline for grant applications is 4:30 p.m. CST on November 1, 2007. Applications must be received at the Louisiana Department of Insurance by certified mail, return receipt requested or commercial interstate carrier.
Commissioner Donelon says that any company not currently licensed to write property insurance in Louisiana may apply for participation in the program conditioned on the submission of a simultaneous application for authority to write the eligible lines of business.
A decision on grant awards will be made by December 10, 2007 with all approved applications being forwarded to the Louisiana Joint Legislative Committee on the Budget for review and approval before any monies can be disbursed. Upon approval of the grant applications, the Department anticipates disbursing funds to the approved applicants by the first of January 2008.