Estudios aplicados a Bluetooth

The State instituted the Louisiana Joint Reinsurance Plan (the predecessor of the FAIR Plan) in 1968 to provide a residual market for adequate insurance on property in the State as a result of civil unrest and urban civil disobedience causing property damage in inner cities within the State. Due to market demands, the FAIR Plan expanded its area of coverage to include any area of the State not contained within the designated Coastal Plan area. The FAIR Plan underwent a number of statutory revisions culminating in the program set forth in Act 424 of the 1992 Regular Legislative Session under the name "The Louisiana Joint Reinsurance Plan." The Citizens Act recreated and continued the FAIR Plan as an Insurance Plan of the Corporation, beginning January 1, 2004.

The State likewise instituted the Louisiana Insurance Underwriting Plan (the predecessor of the Coastal Plan) in 1970 to provide a residual market for adequate insurance on property in the coastal areas of the State as a result of the damage caused by Hurricane Camille. The Coastal Plan was created in Act 35 of the 1970 Regular Session and was recreated and continued by the Citizens Act as an Insurance Plan of the Corporation beginning January 1, 2004.

All insurance companies licensed to write property insurance covering risks located in the State were required by law to participate in predecessor insurance plans as a condition of their license to transact business in the State so that the economic burden of insuring such risks would not fall on a few insurance companies that were willing to do so. Furthermore, State-mandated participation in the predecessor insurance plans was designed to assure an adequate market for fire, extended coverage, and vandalism and malicious mischief and, if necessary, homeowners insurance in coastal and non-coastal areas of the State.

Since January of 2000, property losses were experienced by the participants in the predecessor insurance plans resulting from a hailstorm, Hurricane Lili, and Tropical Storm Isidore which required assessments by the predecessor insurance plans, against the participating insurance companies. Those assessments were not recoverable from policyholders of such companies. As a result, insurance companies had become increasingly reluctant to write insurance in the State.

This situation led to the adoption of the Citizens Act, which is designed to strengthen the voluntary insurance market by giving Affected Insurance Companies the ability to recoup a Regular Assessment from their Affected Policyholders and authorizing the Corporation to impose Emergency Assessments on its policyholders. The Citizens Act was determined by the State legislature to be necessary to the economic welfare of the State since, without an adequate voluntary insurance market, the orderly growth and development of the State would be impeded.

These predecessor plans ceased writing new or renewal business as of December 31, 2003. The Corporation and its Governing Board have no authority to govern or manage these predecessor plans, which will continue to operate until all of their outstanding claims have been closed.

Creation of the Corporation

By the Citizens Act, the Louisiana Legislature created a new residual market mechanism for property insurance in the State. The Citizens Act created the Corporation and vested it with authority to operate the Insurance Plans, which are to function exclusively as residual market mechanisms to provide essential property insurance for residential and commercial property in the State, solely for applicants who are in good faith entitled, but are unable, to procure insurance through the voluntary market. The Governing Board of the Corporation was given authority to administer the affairs of the Corporation, and as of January 1, 2004, to issue insurance policies under the Insurance Plans.

The Corporation maintains its home office at 433 Metairie Road, Suite 400, Metairie, Louisiana. It operates under the supervision of the 15-member Governing Board. The Plan of Operation provides that senior management of the Corporation is engaged by, and serve at the pleasure of, the Commissioner of Insurance. The Plan of Operation, which governs all fundamental business operations of the Corporation, is required to be (and has been) approved by the Insurance Committees and filed with the Office of Property and Casualty of the Department of Insurance pursuant to the Citizens Act. The Corporation is subject to the open meetings laws, public records laws, and public bid laws for procurement of service-provider contracts.

Pursuant to the Citizens Act, all revenues, assets, liabilities, losses, and expenses of the Corporation are to remain divided into two separate accounts and records for the two Insurance Plans. The Corporation’s assets are not part of the general fund of the State and are not subject to debts, claims, or liabilities of the State in order that the funds be preserved for the activities of the Insurance Plans.

The two Insurance Plans operated by the Corporation are known as the FAIR Plan and the Coastal Plan. The FAIR Plan provides insurance with respect to residential properties in the noncoastal areas in the State, and the Coastal Plan provides insurance with respect to residential properties in the coastal areas of the State. The Corporation prepares, and files with the Department of Insurance, annual statements with respect to each Insurance Plan. The annual statements are presented on the basis of Statutory Accounting Practices prescribed or permitted by the Department of Insurance. The Accounting Practices and Procedures Manual of the National Association of Insurance Commissioners has been adopted by the Department of Insurance as a component of prescribed or permitted practices.

The Corporation has the statutory authority to provide property insurance to eligible applicants, to purchase reinsurance, to borrow funds, to sue or be sued, to enter into contracts, and to employ or retain persons to perform its duties. The Corporation is statutorily required to maintain separate accounts for the two Insurance Plans, retain profits and excess reserves to offset deficits, develop and annually reassess a prudent reinsurance program for the Plans, and to take all actions necessary to facilitate and maintain the tax-exempt status of the Corporation for its income and operations and those of the Insurance Plans and to facilitate tax-exempt status for bonds and other indebtedness to be issued by or on behalf of the Corporation or the Insurance Plans. The Corporation may borrow funds to effect its purposes.

When the Governing Board, with the consent of the Insurance Committees, determines that operation of the Insurance Plans is no longer required and there are no outstanding bonds or other financial obligations of the Corporation, the Corporation may liquidate and distribute any net assets, after appropriate reserves for contingencies, to the general fund of the State.

Governing Board

The Governing Board of the Corporation is a board of directors consisting of the 15 members. The members of the Governing Board elect a chairman, who (with the Governing Board’s approval) appoints an executive committee, an investment committee, an audit committee, and an actuarial committee. The members of the Governing Board receive no salary, but their reasonable travel and other expenses may be reimbursed. Pursuant to the Citizens Act, the Governing Board comprises the following members:

• The commissioner of the Department of Insurance, or an employee of the

Department of Insurance as his designee.

• The State Treasurer, or an employee of the Department of the Treasury as his

designee.

• The chairman of the House Committee on Insurance, or a member of that

• The chairman of the Senate Committee on Insurance, or a member of that committee designated by the chairman.

• Six representatives appointed by the Governor, one from a list of two nominees

from the Louisiana Bankers Association; one from a list of two nominees from the Louisiana Homebuilders Association; one from a list of two nominees from the Society of Louisiana Certified Public Accountants; one from a list of two nominees from the Louisiana District Attorneys Association; and the remaining two representatives shall be appointed at large.

• One member appointed by the Commissioner from a list of three nominees from

the Professional Insurance Agents of Louisiana, or its successor.

• One member appointed by the Commissioner from a list of three nominees from

the Independent Insurance Agents of Louisiana, or its successor.

• One member appointed by the Governor from a list of three nominees from the

Property Casualty Insurers Association of America, or its successor.

• One member appointed by the Governor from a list of three nominees from the

American Insurance Association, or its successor.

• One member appointed by the Governor from a list of three nominees from the

largest domestic property insurer in the state.

The following individuals currently serve, by virtue of office or appointment, as the members of the Governing Board:

• Chairperson Denise Brignac (Designee for the Commissioner of Insurance)

• James Napper (Designee for the State Treasurer)

• Representative Chuck Kleckley (Chairman of the House Insurance Committee)

• Senator Eric LaFleur (Chairman of the Senate Insurance Committee)

• Senator Dan Morrish (At Large, Appointed by the Governor)

• Representative Sam Little (Largest Domestic Rep, Appointed by the Governor)

• Lee Mallett (At Large, Appointed by the Governor)

• Jody Boudreaux (Big I Rep, Appointed by the Commissioner)

• Eric Berger (PCI Rep, Appointed by the Governor)

Denise Brignac currently serves as Chairperson of the Governing Board. Ms. Brignac was appointed by Commissioner James J. Donelon. There are currently six (6) vacancies on the

Pursuant to the requirements of the Citizens Act, the election of the chairman of the Governing Board was confirmed by the Louisiana Senate. Pursuant to the Citizens Act, any member of the Governing Board who is not an elected official was confirmed by the Louisiana Senate.

Corporation Management

Prior to April 1, 2008, the Corporation was under contract with the Property Insurance Association of Louisiana ("PIAL") for general administrative services with respect to policies issued by the Corporation. 100% of the Corporation's services were outsourced to PIAL. In August 2007, it was recommended to the Governing Board that there be a change in the organizational structure of the Corporation. In April and May of 2007, the Governing Board hired a new Chief Executive Officer and Chief Financial Officer, respectively, to oversee the transfer of all services performed by PIAL to the Corporation. Prior to the separation, PIAL employed 137 people, 90 of whom were to be dedicated to work on Corporation matters. During the term of the PIAL contract, the Corporation only employed 2 people. There was a formal recommendation made and approved by the Governing Board to reorganize the operational and management aspects of the Corporation and transfer the administration of such services from PIAL to the Corporation. The formal separation between the Corporation and PIAL occurred on April 1, 2008. As a result, all services previously performed by employees of PIAL are now performed by employees of the Corporation. As of the date of this Reoffering Circular, the Corporation employs approximately 80 people dedicated solely to perform the duties of the Corporation previously performed by PIAL.

Disclosure Regarding Former Chief Executive Officer

On December 4, 2008, Terry Lisotta, the former chief executive officer of the

Corporation, was indicted in the 19th Judicial District Court in Baton Rouge, Louisiana with theft

by fraud. The fourteen (14) count indictment charges Mr. Lisotta with theft by fraud for allegedly claiming more than $285,000 in questionable expenses. On February 2, 2009, Mr. Lisotta entered a plea of not guilty and is free on bond pending trial. The trial is scheduled to take place in March, 2009. The Corporation is confident that the pending trial and its outcome will not impact the collection of the Emergency Assessments or the timely payment of principal and interest on the Series 2006C Bonds.

Officers

The following individuals are the officers of the Corporation.

John Wortman, Chief Executive Officer

John Wortman has extensive multi-line insurance operations and financial and management experience. After graduating from college, Mr. Wortman began his insurance career with Aetna Casualty and Surety Company. He rotated through underwriting, marketing and specialty market management positions in several locations throughout the country during his 14 years with Aetna.

Mr. Wortman joined CNA Insurance in 1976. During his 10 years at CNA, he was Regional Vice President of the Midwest and Eastern Regions and was the Senior Underwriting Officer for the company from 1981 to 1986.

Since 1986, Mr. Wortman has focused on Chief Executive Officer responsibilities. From 1986 to 1989 he was Chief Executive Officer of the American Mutual Group; from 1989 to 1995 he was Chief Executive Officer of Michigan Mutual and the Amerisure Companies. In 1995, he joined the Anthem Companies where he was responsible for divestiture of the property/casualty subsidiary companies. Mr. Wortman started Wortman Capital Associates in 1997 and has worked with many stock and mutual insurance companies to develop consistent business and capital planning practices. In addition, since 1997 he was President of Fortune Financial and in 2007 joined the Corporation as Chief Executive Officer.

Mr. Wortman has served on numerous insurance industry boards, including the National Council on Compensation Insurance where he was Chairman in 1991 and 1992. He served several terms on the Insurance Services Office Board as well as the Board of the Property Casualty Insurers Association and the Insurance Institute for Highway Safety.

Steve Cottrell, Chief Financial Officer

Steve Cottrell has 30 years of accounting and financial experience, primarily in retail and insurance companies. He has held multiple accounting and finance leadership positions for more than 25 years. Before joining the Corporation, Mr. Cottrell was the Chief Financial Officer for Cunningham Lindsey Inc., a publicly traded global insurance services company. Prior to his time at Cunningham Lindsey, Mr. Cottrell was a Senior Director of Finance at Aon Insurance. Mr. Cottrell has an undergraduate degree in Accounting from Brigham Young University, a Masters of Business Administration degree in finance from Northern Illinois University and is a Certified Public Accountant.

Regulatory Oversight

The Corporation is exempt from some, but not all, regulatory requirements applicable to insurance companies. Neither the Corporation nor the Insurance Plans are required to obtain a certificate of authority from the commissioner of the Department of Insurance, and they may not participate in the Louisiana Insurance Guaranty Association. The Corporation, in its administration of the Insurance Plans, is required to file, in the Office of Property and Casualty of the Department of Insurance, quarterly statements in the same format that is statutorily prescribed for insurance companies, and annual audited statements which summarize the transactions, operations, and affairs of each Insurance Plan. It is also required to report quarterly to the Office of Property and Casualty on the types, premium, exposure, and distribution by parish of its policies-in-force.

Operational Matters

The Plan of Operation provides for the establishment of facilities and operating procedures for the Corporation and for management of the Corporation. It establishes procedures to determine the amounts of property coverage to be provided covering certain risks, for the purchase and cessation of reinsurance, and for levying and collecting assessments. It also

Policies Written

Table 6 shows the number of policies written and gross premium earned for the years ending December 31, 1999 through 2008 for the Corporation’s Insurance Plans and the predecessor insurance plans. Table 7 shows the gross premium by Subject Lines of Business for the years ending December 31, 2007 and 2008 for the Corporation’s Insurance Plans. The number of policies written differs from the number of policies-in-force due to cancellations subsequent to the purchase or renewal of a policy. For information concerning the number of policies-in-force, see Table 8 under the caption "LOSS EXPOSURE AND LOSS ESTIMATION" herein.

TABLE 6

TOTAL POLICIES WRITTEN AND GROSS PREMIUMS