The board for Louisiana Citizens Property Insurance Corp. votedThursday to borrow $100 million through bonds to cover a cashshortfall of $70 million, despite the objections of the state'sTreasurer.

The Times-Picayune says the move by the state'sinsurer of last resort avoids passing a new regular assessment ontotaxpayers. However, Treasurer John Kennedy criticized the company'sinsolvency and asked that the state's legislature review thecompany's operations during this year's session that begins nextmonth.

By law, Louisiana Citizens has to keep $125 million in cash onhand, or enough to cover one hurricane season. That is in additionto $75 million for reinsurance.

The company borrowed $1 billion for Hurricane Katrina and Ritaclaims in 2006, paying down that borrowing through assessments oninsurers operating in the state.

Thursday's decision would mean the assessment would rise in theshort term to 3.92 percent of insureds' policy premiums from 3.74next year. The rate drops to 3.77 percent in 2015 and would fallmore slowly over the next 13 years than if the bonds were not inplace.

On Thursday, Kennedy said the legislature needs to review theconcept of Louisiana Citizens and determine if there is a betterway insurance program to cover losses.

The State Bond Commission must still approve the bond, whichKennedy said it would closely scrutinize at an upcominghearing.

The board also announced that Citizens CEO Richard Robertsonwould retire on June 1.