The Louisiana Department of Insurance issued a directive reminding authorized P&C insurers that they must accurately charge the emergency assessments imposed by the Louisiana Citizens Property Insurance Corporation (LCPIC).
Directive 198, originally published on February 10, 2021, provides guidance on accurately applying the assessments to policyholders’ premiums. An assessment recoupment surcharge applied to policyholders must be calculated separately and listed on the declarations page. These are not considered premium and are not subject to premium taxes or other charges.
Insurers have 30 days to review their records to ensure compliance. Failure to do so may result in administrative action.
Directive 226 can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.