Insure Louisiana Incentive Program

The following companies have been approved to receive grant funds to participate in the Insure Louisiana Incentive Program. Click each company to visit their website for more information. A list of appointed producers who service policies for each company can be found by searching for the company here.

The Insure Louisiana Incentive Program (“Incentive Program”) was enacted through the passage of Act 754 of the 2022 Regular Session of the Louisiana Legislature for the purpose of cooperative economic development and stability in Louisiana by encouraging additional property insurers to participate in the voluntary property insurance market to increase the availability of property insurance, increase competitive pressure on insurance rates, and reduce the volume of business written by the Louisiana Citizens Property Insurance Corporation. The commissioner of insurance may grant matching capital funds to qualified property insurers through public-private partnerships executed through cooperative endeavor agreements.

A grantee shall write new property insurance in Louisiana with net written premiums of at least a ratio of $2 of premium for each $1 of the total of newly allocated property insurer capital combined with $1 of the grant from the Incentive Program Fund. For example, a grantee is awarded a $2,000,000 grant. In the first 24 months after receipt of the grant, the grantee must write property insurance in Louisiana with net written premiums of at least $8,000,000. The grantee must write at least $4,000,000, or 50%, of the net written premiums for policyholders whose insured property is located in the federal Gulf Opportunity Zone Act of 2005 in Louisiana. Grantees shall maintain this net written premium ratio over five years to fully earn the matching capital fund grant in accordance with R.S. 22:2370 unless an extension has been granted by the commissioner. New property insurance written by a grantee shall be residential, commercial, mono-line, or package property insurance policies in this state and shall include coverage for wind and hail with limits equal to the limits provided for other perils insured under such policies.

Qualifications for Applying for Grant Funds

1. A property insurer must have an existing certificate of authority in Louisiana for the line or lines of insurance that the property insurer applicant will write pursuant to the Incentive Program or documentation that an application for such licensure has been filed with the Company Licensing Division of the department contemporaneous with the filing of the grant application.


2. Satisfactory prior experience in writing property insurance or to new property insurers whose management has satisfactory experience in property insurance. The grant application shall accurately disclose the prior experience of property insurers and their management.
   
   Any insurance company with an officer, director, or controlling shareholder who was an officer, director, or controlling shareholder of an insurance company licensed in Louisiana that filed for bankruptcy or was declared insolvent is ineligible to participate in the Incentive Program. Likewise, any insurance company whose parent company controlled all or part of an insurance company licensed in Louisiana that filed for bankruptcy or was declared insolvent is ineligible to participate in the Incentive Program.


3. Capital and surplus in an amount not less than $10,000,000;


4. Minimum financial strength rating of: AM Best "B+" or Demotech "A";


5. Minimum risk-based capital ratio of 400%;


6. Ability to demonstrate sufficient reinsurance for the business to be written pursuant to the Incentive Program.


7. Net premium to surplus ratio no greater than 3 to 1.


8. Gross premium to surplus ratio no greater than 8 to 1.


9. Applicant shall not insure more than 10% of its surplus in any one risk.

For those interested surplus lines insurers, a grant application shall be filed contemporaneously with the application for licensure with the department by a surplus lines insurer. The application for licensure expresses the applicant's intent to become admitted in this state as an authorized insurer and, if specifically requested in writing by the grant applicant in the application for licensure, will be processed contingent upon approval of the allocation of a grant award.

Applicable Laws

Act 754 - 2022 Regular Session

Act No. 1

Act No. 2

Regulation 125 (Notice of Intent)

Emergency Rule 48

Invitations and Application Forms

Applications may be submitted to Stewart Guerin, Deputy Commissioner, Office of Financial Solvency at [email protected] and/or Gary Smith, Compliance Examiner 4 at [email protected].

1st Invitation

2nd Invitation

Application: Word  PDF 

NAIC Proforma Financials Template (Excel)

Reporting Forms

TBD

Contact Information

Should there be any questions, please contact Stewart Guerin, Deputy Commissioner, Office of Financial Solvency at [email protected] (225) 219-3929 or Gary Smith, Compliance Examiner 4 at [email protected]  (225) 342-7276.