Options to close the deficit to be presented at next board meeting
Louisiana's state-run property insurer of last resort is $56 million in the red, after it covers claims for Hurricane Isaac and pays to settle class-action lawsuits for improper handling of past storm claims.
Steve Cottrell, chief financial officer for the Louisiana Citizens Property Insurance Corp., delivered the news to the board that governs the insurer.
Cottrell says the company has enough cash to pay Isaac claims and has an available bank line of credit if it runs into cash-flow problems.
No decision was made about how to close the deficit. Cottrell says Citizens officials will present options at the next board meeting.
Among the options available to Citizens is charging an assessment on private insurance companies around the state, a cost that would be passed on to their customers.
(Copyright 2012 by The Associated Press. All Rights Reserved.)