La. Citizens CEO to ask for 9% rate hike

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BATON ROUGE (AP) — The chief executive of Louisiana’s state-backed property insurance company is seeking a 9.2% average rate increase for 2010, though he said some policyholders will probably see their rates decrease. John Wortman, CEO of Louisiana Citizens Property Insurance Corp., said he’ll ask the firm’s governing board to approve the rate changes at its meeting Thursday.

The proposed 9.2% rate change is a statewide average. Wortman said about 70% of policyholders would see their rates go up and about 30% would see their rates go down.

The new rates would take effect Dec. 1 for new policies and Feb. 1 for policies that are being renewed, Wortman said.

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If the Citizens board approves the increase, it would also need approval from Insurance Commissioner Jim Donelon’s office before taking effect.

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