The Gulf Coast insurance crisis has hit a new low as two state-chartered insurance associations are being forced to borrow hundreds of millions of dollars for the first time in three decades to pay the hurricane claims of insolvent insurers. The Louisiana association had to borrow 600 million dollars to pay insurance claims and will owe hundreds of millions of dollars in interest payments. In Florida, state officials say insurer insolvencies are due largely to the costs of litigating lawsuits filed by policyholders challenging insurance payments. “Florida’s most recent crisis had some roots in severe storm losses, but was driven into crisis by litigation,” said Robert Hartwig. Borrowing will be repaid largely by policyholders throughout the nation through an increase in premiums. Click here to access the full article.