The receivership of Lighthouse Insurance Companies is a very fluid situation and subject to change. Following is what we learned from the Receiver today. This information is subject to change and will be updated as new information becomes available.
On Monday, the Receiver asked the court to order all Lighthouse Excalibur Insurance Company (LEX) policies to be canceled. The court is expected to approve cancellation in the next few days. As soon as the court approves, the Receiver will issue 30-days Notice of Cancellation of all LEX policies.
The Receiver will make a similar request for the court to order the cancellation of Lighthouse Property Insurance Corporation (LHPIC) in the near future.
The current Lighthouse catastrophe reinsurance coverage ends on May 31, 2022. The Receiver is trying to purchase reinsurance through the date of cancellation, but this may or may not be possible.
Given the impending cancellations and the uncertainty of reinsurance, the Receiver requests that agents move all Lighthouse Property Insurance Corporation (LHPIC) and Lighthouse Excalibur Insurance Company (LEX) policies to a new carrier As Soon As Possible.
The Receiver is in negotiations with Allied Trust Insurance Company, which is interested in assuming all of the LHPIC Louisiana policies. This assumption may or may not be completed, so agents should consider moving these policies to new insurers if possible.
A new insurer is in the final stages of approval of its certificate of authority. Cajun Underwriters Reciprocal Exchange (CURE) is interested in a cancel/rewrite of several thousand Louisiana LEX policies. If CURE gets approved and operational in time, they will contact agents about how to efficiently move LEX policies to CURE. Please be on the lookout for more communications about possible assumption opportunities from these carriers and the Receiver.
Once the court approves cancellation of policies and the Receiver has finalized plans, the Receiver will communicate with all Lighthouse agents with the specific details of cancellation, reinsurance, and assumptions and will provide a link that will allow each agent to identify their LHPIC and/or LEX policies.
Agents do not have to wait for the notice from the Receiver to begin moving Lighthouse policies to new insurers. The Receiver requests that all Lighthouse agents please assist in moving these policies as soon as possible.
Some agents have recently reported that some Lighthouse policies have not been renewed. The Receiver reports that Lighthouse considers coverage to be maintained without lapse in coverage through the final date of the court-ordered cancellation. Agents should report any renewal policies that have not been issued to Lighthouse so that they can issue the renewal, which will be in place until canceled.
If you have any questions, please contact Lighthouse Customer Service at (888) 544-4885.