A bill to fund incentives for insurance companies moved forward in the legislature yesterday.
After hours of questioning Insurance Commissioner Jim Donelon, the House voted 90 to 8 in favor of House Bill 1, which places $45 million into an incentive fund to help attract insurers to Louisiana.
Eight insurers failed financially after hurricanes the last two years in Louisiana and some others stopped writing wind and hail policies causing Louisiana Citizens, the state’s insurer of last resort, to inherit 125,000 policies.
Donelon thinks the incentive funds will entice more insurers to write coverage in the state.
HB 2, which prohibits insurers who filed for bankruptcy or were declared insolvent, also passed out of the House.
