BATON ROUGE, La. (AP) — Louisiana Citizens Property Insurance Corp. plans an average rate increase for wind-only policies of 58 percent, sparking an argument among top state officials on whether the increase is legal.
The Advocate reports (http://bit.ly/Lt8LrM) that the large increase follows a Wednesday meeting of the corporation's board, which rejected state Treasurer John Kennedy's proposal for an increase of 12 percent.
Kennedy says the new rate hike, set to take effect in June, is illegal. Insurance Commissioner Jim Donelon insists the rate is legal and necessary.
Citizens provides insurance coverage to homeowners and businesses unable to obtain it from private companies. Although the average rate hike is estimated at 58 percent, Kennedy says wind-only rates could go up 170 percent in St. Mary Parish and 217 percent in Cameron Parish.
Information from: The Advocate, http://theadvocate.com