Posted: Aug 15, 2013 11:54 AM
Updated: Aug 15, 2013 11:54 AM
Source: Associated Press
BATON ROUGE - State officials have given Louisiana's property insurer of last resort the approval needed to bump up its bank line of credit to $125 million.
Backing Thursday from the State Bond Commission gives the Louisiana Citizens Property Insurance Corp. more resources to cover claim costs if the state is hit with a significant storm.
Citizens officials say the increase - from $75 million - combined with the company's own insurance coverage will provide financial protection through hurricane season.
The bank line of credit works as short-term borrowing for the company, available to give Citizens upfront cash to pay claims and other expenses if the insurer doesn't have enough money on hand for the costs.
The money would have to be paid back with interest if the line of credit is used.