Trouble in Louisiana, Too

American Integrity also is having problems in Louisiana, where Insurance Commissioner Jim Donelon recently disqualified the company from the state's Insure Louisiana Incentive Grant program. Donelon said the Tallahassee-based company did not have the capital necessary to qualify for a $5 million matching grant to start selling homeowners' business in Louisiana. An analyst noted that American Integrity has risk-based capital of about 200 percent; Louisiana requires 500 percent.

In 2007, the Louisiana Legislature appropriated $100 million to set up a matching grant program to entice carriers to sell homeowners' insurance in the southern part of the state and take policies out of Louisiana Citizens Property Insurance Corp. The program has shelled out just under $30 million so far. A $5 million grant application from Bankers Specialty Insurance Co., in St. Petersburg a subsidiary of Bankers Insurance Group, is pending.