A new law in Louisiana has reversed a past stipulation requiring insurers to take policies from Citizens Property Insurance in bundles, National Underwriter Property & Casualty reported.

A new law in Louisiana has reversed a past stipulation requiring insurers to take policies from Louisiana Citizens Property Insurance Corp. in bundles of at least 500, National Underwriter Property & Casualty reported July 21.

Despite past concerns from legislators that insurers would pick and choose the best available policies from Citizens, the new law allows insurers to again choose individual policies, which is meant to encourage the voluntary insurance market to write in the state, Greg LaCost, assistant vice president of state government relations for the Property Casualty Insurers Association of America, told the news outlet.

Additionally, Insurance Commissioner Jim Donelon said the new law will allow more efficiency and flexibility in the state's depopulation program and will allow Citizens more opportunities to decrease the number of policies it holds.
July 30, 2010