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Citizens seeking increased credit for storm season

3 years 3 months 5 days ago July 17, 2013 Jul 17, 2013 Wednesday, July 17 2013 July 17, 2013 4:15 PM in News
Source: Associated Press

BATON ROUGE - The governing board for Louisiana's property insurer of last resort wants to boost its bank line of credit, to give the company enough wiggle room to cover costs in case of a storm.

The Louisiana Citizens Property Insurance Corp. approved a proposal Wednesday to increase its line of credit with Regions Bank from $75 million to $125 million. The decision also needs backing from the State Bond Commission.

Steve Cottrell, chief financial officer for Citizens, says the increase will give the company financial protection through hurricane season.

The move comes after a $100 million borrowing plan stalled at the state capitol, despite concerns about a looming shortfall because company expenses are projected to be larger than revenue.

Citizens' board also approved a $275,000 salary for its new CEO, David Thomas.

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