TALLAHASSEE, Fla. – With lawmakers expected to hold a special legislative session next month on Florida’s troubled property-insurance system, Tampa-based Lighthouse Property Insurance Corp. has been placed into receivership in Louisiana.

Louisiana Insurance Commissioner James Donelon this month placed Lighthouse, which has customers in Florida, Louisiana, North Carolina, South Carolina and Texas, into receivership, according to Donelon’s office.

The move came amid widespread problems in Florida’s property-insurance market, which has seen insurers shed policies and seek large rate increases because of financial losses. Florida regulators recently placed two insurers, St. Johns Property Insurance Co. and Avatar Property & Casualty Insurance Co., into receivership after they were declared insolvent.

Karen Roach, press secretary for the Florida Office of Insurance Regulation, said Lighthouse has about 27,000 policies in the state.

“The Florida Office of Insurance Regulation is working closely with the receiver in Louisiana to protect those policyholders,” Roach said in an email.

A memo to insurance agents from Lighthouse and the related Lighthouse Excalibur Insurance Co. pointed to what are known as insurance guaranty associations in Florida and the other states stepping in to cover claims.

“(The) rehabilitation and subsequent liquidation provide a pathway for the Louisiana, South Carolina, North Carolina, Florida and Texas Insurance Guaranty Associations to administer and fund the outstanding claims of Lighthouse,” the memo said. “The guaranty funds are able to fund claims of insolvent insurers up to their applicable limits as well as return premiums.”

Lighthouse told agents in February that it would stop writing new business in Florida. The rating agency Demotech announced March 29 that it was withdrawing its financial-stability ratings for Lighthouse and Lighthouse Excalibur. The Demotech announcement pointed to losses from Hurricane Ida, which slammed into Louisiana last year.

Florida Gov. Ron DeSantis said Monday he will call a special session in May to address problems in the insurance system. The House and Senate were not able to reach agreement on an insurance measure during the regular legislative session, which ended March 14.

Source: The News Service of Florida