(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.

1. 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.
   
   
2. 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.
   
   
3. 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.

(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.