Louisiana has opted to extend the policy cancellation date for failed insurer Lighthouse as the state’s Department of Insurance looks to secure additional reinsurance for policyholders through the end of this month.
Lighthouse policies were originally scheduled for cancellation on June 22, but Insurance Commissioner Jim Donelon announced that the deadline has now been extended to June 30.
The state wants to provide more time for Louisiana insurance agents to help policyholders find coverage, and to secure more reinsurance protection for Louisiana Citizens Property Insurance, the state-backed insurer of last resort.
It was reported a few weeks ago that Citizens had already picked up 13,000 new policies since Lighthouse and its subsidiaries ceased doing business, with private insurers taking on a further 22,000.
Insurance agents working to place Lighthouse Excalibur, Maison and Southern Fidelity policies now have an extra 60 days to place those policies while maintaining coverage for policyholders after cancellation.
Policyholders whose insurance policy is cancelled will be covered by Citizens for claims occurring between their cancellation date and the date their agent binds a new policy with Citizens if that date is no later than 60 days following the original policy’s cancellation.
With this change, Citizens will effectively provide coverage for Lighthouse Excalibur and Maison policyholders from June 30 through August 28, and for Southern Fidelity policyholders from July 15 through September 13.
“Louisiana agents have been working tirelessly to place policyholders with insurers following the announcement that three insurers are canceling policies in the coming weeks,” said Commissioner Donelon.
“This initiative by Citizens provides much-needed relief and time for agents and policyholders to get a new policy in place while maintaining coverage during hurricane season.”
