November 12, 2021

Commissioner Donelon Puts Two Insurers Into Receivership

Insurance Commissioner Jim Donelon has placed two financially troubled homeowners insurance companies, Access Home Insurance Co. and State National Fire Insurance Co., into receivership in the 19th Judicial District Court, taking decisive action to protect policyholders. The move is an important step toward the Louisiana Insurance Guaranty Association (LIGA) taking over claim payments, ensuring that most policyholders with pending hurricane claims will get paid.

Commissioner Donelon has been stating in recent weeks that the Louisiana Department of Insurance (LDI) has been monitoring closely the solvency of property and casualty insurers operating in Louisiana since Hurricane Laura hit our state in 2020, fulfilling its most important role in protecting policyholders.

The combination of hurricanes Laura, Delta and Zeta in 2020, which cost insurers $10.6 billion; Hurricane Ida, which is projected to cost insurers between $20 billion and $40 billion; and increasing labor and materials prices because of supply chain disruptions during the pandemic have put several insurers in danger of exhausting their reinsurance coverage and running out of money.

“We are taking action to protect policyholders,” Commissioner Donelon said. “Historic back-to-back storm seasons coupled with the average cost of claims coming in higher than expected because of the pandemic got us to where we are today. The good news is that LIGA can pay up to $500,000 per claim and is ready to handle the influx of claims. We have been actively monitoring market conditions and were prepared to do what needs to be done.”

The failures of homeowners insurers are relatively rare. There were a wave of auto and health insurer insolvencies in the late 1980s and early 1990s, but there have been few problems with solvency since then.

LIGA is available to pay claims if an insurer goes into liquidation, a type of receivership where a company is dissolved. As major companies like State Farm and Allstate retreated after the 2005 storms, the Louisiana Department of Insurance recruited dozens of small regional insurers to our state, reinsured by the international reinsurance market, to keep insurance available and affordable. More than 30 new insurers came to Louisiana, giving property owners choices in the private market.

Commissioner Donelon has twice lobbied the Legislature to increase coverage limits at LIGA to make sure policyholders are adequately protected. In 2008, he lobbied the Legislature to increase coverage to $300,000 from $150,000 per claim, and then in 2010 he sponsored legislation to increase the amount of money that LIGA could pay per claim to $500,000 from $300,000. Both of those increases were in compliance with National Association of Insurance Commissioners (NAIC) model laws in place then.

According to the National Conference of Insurance Guaranty Funds, only nine states have guaranty fund coverage of $500,000 per policyholder.

Access Home Insurance Co. has about 19,697 policies or 0.86% of the homeowners insurance market and $17,684,440 in direct written premium. It has been licensed in Louisiana since 2011.

State National Fire Insurance Co. has about 9,000 policies or 0.14% of the homeowners insurance market and $2,945,198 in direct written premium. It has been licensed in Louisiana since 1981.

Court-appointed receivers are now in charge of operating each company. Both companies are in rehabilitation, a type of receivership aimed at solving problems at the company. Policyholders will receive communications from the court-appointed receiver or their insurance agent about claims and whether the rehabilitation will involve non-renewing policies or transferring them to another insurer.

Policyholders with questions about their insurance coverage, the status of their policies or renewals should contact their insurer or insurance agent. Policyholders with questions about claims can call LIGA at 225-277-7151 or go to Policyholders can also contact the Louisiana Department of Insurance at 800-259-5300 or go to for assistance.

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting