La. homeowners to get cash from incentive fund

Louisiana homeowners could receive cash from the unused portion of an expired pot of government money used to lure insurance companies to the state, Insurance Commissioner Jim Donelon said Monday.

Donelon estimated the checks would total $50 or more, though he's not sure when the Department of Insurance will mail them.

The money comes from the remainder of a $100 million fund set up in 2007 as matching grants for private insurance companies that agree to begin writing policies in coastal areas.

The incentive program was aimed at improving homeowners' access to private insurance after the 2005 hurricanes, and to reduce the number of policies written by the state's "last-resort" insurer, Louisiana Citizens Property Insurance Corp.

The insurance department issued $29 million in grants, and state law says the remaining money should be divvied up and given to holders of homeowners policies.

Donelon, speaking to the Press Club of Baton Rouge, also said he plans to back legislation this spring that would help consumers by eliminating a health-insurance loophole that can produce bills from radiologists, pathologists and anesthesiologists. Donelon said a small percentage of those specialists do not fall under health insurance plans, and their care can trigger bills on top of patients' deductibles.

Donelon said he expects the bill to encounter opposition from the insurance and hospital industries.

Beaumont Insurance Agencies Are Reporting More Drivers Dropping Insurance To Save Money

Insurance agencies are reporting more drivers are letting their car insurance lapse because of the sour economy and that is putting themseleves and others at risk.

According to the insurance research council several hundred thousand drivers dropped their insurance in the past year as the jobless rate climbed.

Online Agency Insurance Dot Com says it's also seeing evidence recently of more uninsured motorists.

Another factor may be that many people faced with huge bills from hurricanes let their insurance lapse, but this could be a costly decision.