Louisiana Extends The Benefit Of UPC Policy To Those Who Take It
worldinnews.com - Louisiana's insurance commissioner, Jim Donelson, announced today that the state-owned Louisiana Citizens will extend the support of additional 30 days to policyholders and insurance agents after the UPC policy cancellation on March 29 was announced. Policyholders and agents that bind a Citizens policy will not lose coverage.
Those who fail to locate a new policy before their UPC policy is canceled will be covered by Citizens for claims that occur between the date their policy was canceled and the end of the extension period. If an agent binds the Citizens policy on this date, the commissioner said.
The expansion is not intended to affect those who choose a new insurance policy with a different insurer than Citizens.
Those who have a UPC policy should take advantage of this extra time to procure coverage through a private insurer before turning to Citizens," Donelon said. "I urge these policyholders to communicate with multiple agents, including independent agents, and begin searching for a new policy".
Last week, Donelon announced that participating insurers would receive credits toward their grant requirements for taking UPC policies. Also, credit will be given to companies that write policies for former UPC policyholders during the 30-day period following the policy's cancellation, the Louisiana Department of Insurance said.
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Florida-based UPC, which has approximately 30,000 Louisiana policies, was placed into liquidation by the Florida Office of Insurance Regulation and the judicial system there on February 27th, after its losses from Hurricane Ian increased to $1.5 billion. The corporation previously attempted to divest itself from its Florida, Louisiana, New York and Texas personal lines operations.
