Louisiana Citizens Depopulation

How do Ocean Harbor’s premiums compare to Louisiana Citizens’?

In all cases, Ocean Harbor’s premiums are lower than Louisiana Citizens’.  On average, Ocean Harbor’s rates are 10% below Louisiana Citizens’ renewal rates.

What commission rate will I receive from Accentus?

The first renewal of depopulated policies on Ocean Harbor paper will be treated as new business.  Accentus pays 12% new business commissions for dwelling and homeowners policies and 10% new business commissions for wind-only, mobile-home dwelling fire and mobile-home homeowners policies.

Why would Ocean Harbor choose to assume a policy in areas they are non-renewing policies for exposure management or are not open for new business?

Every risk is different. If a company has a concentration of risks in a zip code, it doesn’t mean it can’t take on some additional risks there. The issue is the company can’t evaluate the risk’s contribution to reinsurance cost in real time when the risk is submitted for binding by an agent. Louisiana Citizens depopulations allow the company to evaluate risks in advance to determine their impact on reinsurance cost. The risks that have been chosen to assume have therefore been evaluated and determined not to have a negative effect on the company’s reinsurance cost.

Will depopulated policies be re-underwritten?

Based on data provided by Louisiana Citizens, all policies selected for depopulation should be eligible for coverage from Ocean Harbor.

However, Hurricane Ida highlighted the impact high inflation can have on carriers, agents, and insureds. Should such inflationary conditions persist, to protect all parties, it may be necessary to evaluate policy limits to ensure adequate replacement cost coverage.

Can liability be added to a dwelling policy?

Liability can be added once issued on Ocean Harbor’s paper with the completion of a supplemental application and subject to underwriting.

What is the financial security of Ocean Harbor Casualty Insurance Company?

Ocean Harbor is rated B by AM Best and A by Demotech.  The financial comparison chart of all companies participating in this round's depopulation can be found here.

How do I authorize Ocean Harbor to depopulate policies?

Through the Depop Agent Portal.  The Depop Agent Portal can be accessed through EPIC with the producer’s system administrator’s login.

The Depop Agent Portal menu item will display once logged into EPIC as the producer’s system administrator. The portal will display each of producer’s policies up for take‐out and indicate whether Ocean Harbor has requested the policy.  Select Ocean Harbor to authorize the policy for depopulation.

How long do I have to authorize Ocean Harbor to depopulate policies?

Agents will have access to the Depop Agent Portal September 23, 2024, through close of business on November 8, 2024.

Will the producer be affected if a policy is assumed?

The current producer will remain the agent of record on all policies assumed by Ocean Harbor.

How will policy changes be handled?

Citizens will continue to service in-force policies until their expiration. Citizens will also renew assumed policies with expiration dates through February 28, 2025. Ocean Harbor will renew policies on their paper starting with March 1, 2025 expiration dates.

How will losses be handled?

Ocean Harbor will be responsible for claims on assumed policies occurring on or after December 1, 2024. Citizens will be responsible for claims occurring prior to December 1, 2024.

Will policyholders be notified about the assumption?

Prior to December 1, 2024, producers and policyholders will be formally notified of the assumption by both Ocean Harbor and Louisiana Citizens.