Louisiana’s property insurer of last resort has gotten permission to secure a $75 million cash line of credit in case a hurricane damages the state. The Louisiana Citizens Property Insurance Corp. has enough money set aside to cover a $110 million legal judgment against the company, but paying it could nearly drain its bank account. In consequence, the Bond Commission agreed today to allow the insurer to establish the credit for a bank loan in case of a catastrophic event where the company would need millions to pay claims. Treasurer John Kennedy says Citizens won’t draw down the money unless there is an emergency. The $110 million judgment, still being argued in legal proceedings, was levied against the company for its slow movement in paying hurricane damage claims in 2005.
Citizens gets approval for $75M line of credit
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