The governor of Louisiana has called for a special session on insurance

BATON ROUGE, Sun. (AP) – Louisiana Gov. John Bel Edwards on Sunday called for a special legislative session to solve the state’s insurance problems.

The event is scheduled to begin on January 30 and end on February 5.

Louisiana continues to suffer from insurance crises, with insurers either going out of business or going out of business in the state affected by the storm. Insurance Commissioner Jim Donelon wants the Legislature to allocate at least $45 million into a new stimulus fund aimed at attracting insurance companies. in the state.

Although councilors and Edwards had hoped to resolve the issue during the regular council meeting in April, Donelon said it could not wait. In order to attract insurance companies in Louisiana, they need to have insurance again, which is the insurance that is purchased to help ensure that they can pay their claims. However, companies need to be re-insured before the storm, which begins on June 1.

“While Commissioner Donelon says we need to do this now, this is only the first step in addressing Louisiana’s insurance issues after the 2020 and 2020 hurricane seasons. in 2021, a disaster that was exacerbated by storms and fires in other states in 2022,” said the governor. in a statement, the Advocate received.

Senate President Page Cortez and House Speaker Clay Schexnayder, both Republicans, supported Edwards’ decision.

“Commissioner Donelon said that time is very important in terms of the funding by the Legislature of the incentive program and therefore it is necessary to go to a special meeting,” said a Cortez in the Advocate.

After a series of devastating hurricanes in 2020 and 2021 – Delta, Laura, Zeta and Ida – more than 610,000 apartment building claims were filed in Louisiana, according to Louisiana Department of Insurance data. As a result, property insurers have paid $18.4 billion in claims as of June 30. About $11 billion of that amount was paid to homeowners.

But as claims piled up, at least 11 insurance companies wrote homeowners policies in the state that could not pay. Five of the companies left about 26,000 claims for the state program to be closed. In addition, at least twenty other companies have left the state, either canceling existing policies or announcing that they will not be renewed.

This situation has caused thousands of families to pay higher premiums or go forward without insurance.

Although Louisiana was spared from severe storms last year, the state has seen many storms make landfall and leave paths of destruction.

Additionally, Hurricane Ian – although most of the damage was done in Florida – is expected to have an impact on insurance outside of the Sunshine State. Most of the companies that write insurance in Louisiana are based in Florida, which has struggled to maintain the health insurance market since 1992, when Hurricane Andrew devastated Homestead, wiping out some insurance companies and leaving the many companies were left afraid to write or update policies.

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