LA last chance insurer asking for rate hike

BATON ROUGE, La. (AP) - The board that oversees the state-run insurer of last resort has asked Insurance Commissioner Jim Donelon's office to approve an overall average 9 percent rate increase for homeowners policies starting July 1.

The board voted 4-2 Thursday to send the proposed rate increase to Donelon.

Steve Cottrell, chief financial officer of the Louisiana Citizens Property Insurance Corp., tells The Times-Picayune that Donelon's office can approve or reject the new rates sent to him by the board.

Cottrell said the application should be back before the board in 30 to 60 days.

If approved as submitted, the average Citizens homeowners policy will increase by about $200, from about $2,000 a year to $2,200, but many of the 115,000 policyholders will see a higher increase, some less.

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