Some Good News from LA Citizens
(Friday, June 17, 2022)
As mentioned in yesterday's PIA Member Alert, following Commissioner Donelon's Press
Conference, PIA has been in discussions to try to find a way to provide some relief to
our agency members and their insureds. We are thrilled to report that LA Citizens will
be implementing the following system change that will allow for more time as needed as
you replace coverage for Lighthouse, Maison and Southern Fidelity policies. Please find
below the details that also have been sent out by LA Citizens.
We want to publicly thank Richard Newberry, CEO of LA Citizens, and his team for coming up
with this proposal. As always, we know there may be questions, so please email us with
those and we'll be sure to followup. But considering how dire the circumstances have been,
we wanted to get this out to you ASAP.
Louisiana Citizens Property Insurance System Change
Due to unprecedented volume LCPIC proposes to make the following system changes on June 30th
in order to serve those property owners and producers in their time of need:
LCPIC will make a one-time system change for those who have a declarations page or a cancelation
letter Indicating coverage was in effect at the time of liquidation of the following companies
Maison, Lighthouse, or Southern Fidelity as follows:
LCPIC will accept business written with the above three companies as long as the policy is bound
no later than 60 days after the official date of cancelation. If a risk is bound with LCPIC the
effective date will be the official cancelation date for each of the above companies.
Lighthouse has an official cancelation date of June 30th 2022. Therefore, the producer will have
until August 28th to complete all the current processes and bind coverage with an effective date
of June 30th. Please note that this is the date after an extension of 7 days ordered by
Commissioner Donelon, along with reinsurance being procured for those additional days.
Maison has an official cancelation date of June 30th 2022. Therefore, the producer
will have until August 28th to complete all of the current application requirements and bind coverage
with an effective date of June 30th 2022.
Southern Fidelity has an official cancelation date of July 15th 2022. Therefore the
producer will have until September 13th 2022 to complete all of the current application requirements
and bind coverage with an effective date of July 15th 2022.
It is imperative that we keep all underwriting requirements including but not limited to requiring an
accurate square footage/E2Value to insure a proper ITV estimation during this entire process.
Commissioner Donelon Press Conference
(Thursday, June 16, 2022)
Commissioner Jim Donelon just held a press conference. If you missed this press conference,
it is important to note: Commissioner Donelon reported that reinsurance has been purchased
to extend the deadline for policies to be replaced for Lighthouse/Excalibur to June 30,
which will give your insureds more time to replace this coverage. Be reminded that this
deadline is the same for Maison policies — June 30. Also, he mentioned that
Southern Fidelity now has been placed into Receivership, and the deadline to replace coverage
for policies with Southern Fidelity is July 15.
For those of you who have insureds placed with these companies, we are aware of your predicament.
We have been in discussions to see if we can provide any relief. We will let you know if something
develops from those discussions. In the meantime, please let us know of any questions/issues that
you are encountering so that we may attempt to assist you through those specific issues, as well
as to have that data for our discussions.