Louisiana Citizens Property Insurance Corp. has until Monday to post a $95 million bond after losing a class-action lawsuit that said the company took too long to settle Hurricane Katrina claims. The company is appealing, but still must post the bond.
The bill could force Citizens to increase the fee, or "assessment," that it imposes on all homeowners in the state. Money raised by the existing 5 percent assessment goes to pay off debt incurred in paying off Katrina claims.
Commissioner of Insurance Jim Donelon and Louisiana Citizens Property Insurance Corporation CEO John Wortman will hold a press conference on Wednesday to alert the public to a potential catastrophic event looming on the horizon relative to Citizens.