The Louisiana Department of Insurance announced Regulation 132 which creates the Louisiana Churches and Nonprofit Religious Organizations Self-Insured Fund. The regulation is effective immediately.
Catastrophic losses have heavily impacted Louisiana and caused large insurance companies to reduce their participation in the voluntary market. Many churches and nonprofit religious organizations have struggled with the availability and affordability of property insurance and have resorted to getting coverage from the state’s FAIR plan. Many have been forced to sell or abandon the property.
The Department believes churches and other religious organizations are hugely important to the community and provide many beneficial services. The fund is being created to allow religious organizations to self-insure, thus increasing the availability of insurance and reducing the number of policies written by the FAIR plan.
To be eligible, two or more nonprofit religious organizations can agree to pool their liabilities in order to provide insurance coverage for their buildings and properties. They must have a positive net worth, be financially solvent, and be capable of assuming obligations.
The regulation can be found here.