State Treasurer John Kennedy, a member of the Louisiana Citizens Property Insurance Corp. board of directors, is calling for a special meeting of the board to “fully consider” the effects of a new law that gives some coastal residents a break on wind-and-hail-only coverage.
Louisiana law requires Citizens, in most cases, to charge 10 percent more than private insurers. During the most recent session, legislators passed a law that cut out the additional charge in coastal parishes where private insurance companies didn’t offer wind-only policies.
Citizens had implemented new rates June 1 that increased wind-only policies’ cost an average of 58 percent statewide. State and local politicians protested on behalf of their constituents.
The new law will cost Citizens an estimated $15.8 million in lost premiums and fees, with $2.6 million of that premium related to wind-only policies.
In a Wednesday letter to Denise Brignac, Citizens chairwoman, Kennedy asks that the board look at the potential need to refund money to policyholders and the impact on Citizens’ budget.