Louisiana has decided to extend the policy cancellation deadline for bankrupt insurer Lighthouse until the end of the month while the state’s Department of Insurance works to seek more reinsurance for policyholders.
The deadline for canceling lighthouse policies was initially set for June 22, but Insurance Commissioner Jim Donelon said that it has now been extended to June 30.
Louisiana Citizens Property Insurance, the state-backed insurer of last resort, will have additional time to help policyholders get coverage, and extra reinsurance protection will be secured for Louisiana Citizens Property Insurance.
Citizens has already taken on 13,000 new covers since Lighthouse and its subsidiaries halted operations a few weeks earlier, with private insurers taking on another 22,000, according to reports.
Insurance agents who are trying to place Lighthouse Excalibur, Maison, or Southern Fidelity policies now have an extra 60 days to do so while keeping consumers covered after cancellation.
Citizens will cover policyholders whose insurance coverage is cancelled for claims that occur between the cancellation date and the date their agent binds a new policy with Citizens, as long as the new policy is binded within 60 days of the original policy’s cancellation.
Citizens will cover Lighthouse Excalibur and Maison policyholders from June 30 to August 28, and Southern Fidelity policyholders from July 15 to September 13 as a result of this adjustment.
Commissioner Donelon stated, “Louisiana agents have been working feverishly to place consumers with insurance following the notification that three insurers will be canceling policies in the coming weeks.”
“Citizens’ effort provides much-needed respite and gives brokers and policyholders more time to get a new policy in place while still having coverage throughout hurricane season.”