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May 20
Update on Lighthouse Insurance Companies 05/20/2022

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.


May 19
Florida eyes big rate-jump requests

​Florida regulators will consider large rate-hike requests from three insurers even as its insurance sector is rocked by escalating costs and uncertainty, reports the Insurance Journal (5/17/22, Southeast News). Fraud and litigation are the focus of new Florida initiatives to improve market conditions, reports Reinsurance News (5/12/22, Gallin).​

May 19
Fraud swells claims payout by billions

​Property and casualty insurers paid between $4.6 billion and $9.2 billion extra in 2021 due to fraud and those costs result in an “inflationary stimulus" that hits policyholders, reports Artemis (5/18/22, Evans).​

May 19
Wildfires are growing risk to homeowners

​About 80 million U.S. properties are at wildfire risk, including in Texas, Florida and an expanding swath of the Southeast, reports CNN (5/16/22, Nilsen). Global weather disasters have increased fivefold in 50 years, reports Newsweek (5/11/22, Piore). A jump in huge storms tied to climate change is hurting insurers but just 8 percent are ready for the impact, reports Reuters (5/17/22).​

May 19
Warehouses are Northshore flood worry

​A planned warehouse corridor in St. Tammany Parish is the focus of flood concern for some Northshore residents, reports the New Orleans Times-Picayune (5/16/22, Pagones). A New Orleans suburb will get beefed-up flood protection in the form of coastal oyster reefs, reports the Insurance Journal (5/17/22, South Central News).​

May 19
State to sue builder over flooding

​Louisiana environmental regulators plan to sue a Baton Rouge home builder for work in Ascension Parish that elevated neighbors' flood risk, reports The Advocate (5/13/22, Mitchell). Flood concerns are central to a building moratorium in Livingston Parish, reports The Advocate (5/12/22, DeRobertis). Lawyers say a national builder's homes can't handle Louisiana humidity and that it used fraud to get buyers to sign purchase contracts, reports The Advocate (5/16/22, Gyan). ​

May 19
Ominous sign for storm season?

​A Gulf of Mexico current that warms water and fuels monster storms like Katrina likely will be a factor in the 2022 Atlantic hurricane season that starts June 1, reports the Times-Picayune (5/18/22, Shay). Forecasters already are putting out daily storm outlooks, reports the Times-Picayune (5/16/22, Wells).​

May 19
Katrina victims face home-repair suits

​Homeowners who were once told they could use federal home-elevation grants to fix their Hurricane Katrina-damaged properties now face state lawsuits for doing that, reports the New Orleans Times-Picayune (5/12/22, Webster). The situation means Katrina's nightmare and the inept legacy of the state's Road Home recovery program continue for some, observes The Advocate (5/17/22, Our Views). ​

May 12
WORKERS’ COMP FRAUD ON THE RISE.

​Insurers are fighting back with new ways to identify workers' compensation fraud amid a spike in claims since 2020 despite an increase in the number of employees working remotely, reports Business Insurance (5/3/22, O'Connor).​

May 12
MOST HOMEOWNERS ARE UNDERINSURED.

​An industry survey of more than 1,000 policyholders concludes that just 30 percent of homeowners with property insurance have adequate coverage in case of catastrophe as inflation drives up rebuilding costs, reports the Insurance Journal (5/6/22, National News).​

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No, this isn't actually my picture. I just haven't gotten around to updating this section. It's good to know that someone is reading every last word though. Thanks!