The governing board of the Louisiana Citizens Property Insurance Corp. has agreed to increase the company's line of credit by $50 million.
The plan, which still needs approval from the State Bond Commission, would allow the insurer-of-last-resort to borrow up to $125 million from Regions Bank. Citizens' current limit is $75 million.
Steve Cottrell, Citizens' CFO, says that the increase would provide a short-term source of borrowed money to ensure the company doesn't have problems paying claims even if Louisiana is hit with two significant storms this year. Citizens' current reinsurance deductibles are $50 million each for two seasonal hurricane events.
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