Louisiana Citizens Property Insurance Corp.’s board has voted to borrow $100 million through bonds to cover a $70 million shortfall — in direct defiance of the Jindal administration’s wishes.
In an email after Thursday’s vote, The Advocate reports Division of Administration spokesman Michael DiResto criticized the proposed bond issue, describing it as bad for all property owners and taxpayers.
Citizens issued $978 million in bonds in 2006 to cover its Hurricane Katrina and Rita claims. Citizens billed property insurance companies doing business in the state for the payments on those bonds.
Citizens Chief Financial Officer Steve Cottrell said Citizens can arrange its payment schedule so that the current assessment, 3.74 percent of property insurance premiums, does not increase for policyholders.
Source: Associated Press/The Advocate


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