SafePoint to Assume 30K Louisiana Policies From Insolvent Insurers

SafePoint Insurance Co. will assume 30,000 Louisiana homeowners policies from two insolvent insurers, Insurance Commissioner Jim Donelon announced Dec. 29.

The 19th Judicial District Court approved terms of the takeover, which is retroactive to Dec. 1. The Louisiana Department of Insurance was unable to name the private insurer until the court approved all terms.

Policyholders who had been with the insolvent insurers, Access Home and State National Fire, will not need to search for new insurance or turn to the Louisiana Citizens Property Insurance Corp., the state-sponsored insurer of last resort.

Florida-based SafePoint acquired the policies for the price of the unearned premium, LDI said.

SafePoint had $959,035 in Louisiana direct written homeowners premium, or 0.05% of the residential homeowners insurance market, prior to the transaction.

Customers who had been with either of the insolvent insurers for more than three years will retain their status under Louisiana’s three-year consumer protection statute. LDI confirmed that these transfers will occur even if the customer’s home was damaged in Hurricane Ida and has not yet been repaired.

“As policies come up for renewal each month starting in March 2022, they will be re-written using SafePoint’s rates and policy forms,” LDI said in a statement. “Policies that renew before then will continue to show Access Home or State National Fire as their insurance provider because of proper notice requirements and will be re-written as SafePoint policies upon renewal.”

Policyholders who had been with Access Home or State National Fire for less than three years will not be granted that option and may need to find new coverage at their renewal time.