Robertson did clarify, however, that a huge lump payment to policyholders from a major storm in 2012 could put enormous pressure on the company. “Of course, a major Katrina-type storm could cause a problem if it happens this year before we have time to replenish our cash reserves, causing the possibility of an assessment that would affect the entire state,” he said.
Since 2008, LA Citizens has instituted management systems and a structure that has strengthened the entire organization. “This judgment reflects the aftermath of Katrina and Rita before the company was restructured to raise accountability standards. In 2009, Hurricane Gustav generated more than 50,000 claims. There are fewer than 100 claims that remain open. There were no class action lawsuits,” he said.
More about Louisiana Citizens Property Insurance Corporation
Louisiana Citizens Property Insurance Corporation is a non-profit insurance corporation created to provide insurance products for residential and commercial property applicants who are in good faith entitled, but unable, to procure insurance through the voluntary insurance marketplace.