$300,000,000 LOUISIANA CITIZENS PROPERTY INSURANCE CORPORATION ASSESSMENT REVENUE BONDS, SERIES 2006C Consisting of

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1 NOT A NEW ISSUE BOOK-ENTRY ONLY RATINGS: See Ratings herein On the respective Conversion Dates (as hereinafter defined), Breazeale, Sachse & Wilson, L.L.P., Bond Counsel, will deliver an opinion that the conversion from the Auction Mode Rate (as hereinafter defined) to the Long Term Interest Rate (as hereinafter defined) is permitted under the Act (as hereinafter defined), the Master Indenture (as hereinafter defined) and the Original Seventh Supplemental Indenture (as hereinafter defined), and Nixon Peabody LLP, Special Tax Counsel, will deliver an opinion on the respective Conversion Dates that the conversion from the Auction Mode Rate to the Long Term Interest Rate will not in and of itself cause interest on the Series 2006C Bonds to be included in gross income of the owners thereof for federal income tax purposes. See TAX EXEMPTION herein for a more complete discussion and Appendix C Original Opinion of Special Tax Counsel, Appendix C-1 Proposed Form of Opinion of Special Tax Counsel and Appendix D Proposed Form of Opinion of Bond Counsel attached hereto. $300,000,000 LOUISIANA CITIZENS PROPERTY INSURANCE CORPORATION ASSESSMENT REVENUE BONDS, SERIES 2006C Consisting of Subseries Principal Amount Conversion Date 2006C-4 $75,000,000 April 8, C-1 $75,000,000 April 22, C-2 $75,000,000 April 29, C-3 $75,000,000 May 6, 2009 Initially issued in the Auction Mode Rate and being converted to the Long Term Interest Rate. Dated: Date of Delivery Due: As shown on inside cover This Reoffering Circular is furnished in connection with the conversion of the interest rate from the Auction Mode Rate to the Long Term Interest Rate and the remarketing of the $300,000,000 Louisiana Citizens Property Insurance Corporation Assessment Revenue Bonds, Series 2006C, originally issued in four subseries: Series 2006C-1 ($75,000,000), Series 2006C-2 ($75,000,000), Series 2006C-3 ($75,000,000) and Series 2006C-4 ($75,000,000) (each a Subseries and collectively, the Series 2006C Bonds ) on the respective Conversion Dates (as hereinafter defined) of each Subseries of the Series 2006C Bonds, as more fully described herein. The Series 2006C Bonds were originally issued on April 11, 2006 pursuant to the provisions of the Act and pursuant to an Amended and Restated 2005 FAIR Plan Emergency Assessment Master Indenture of Trust dated as of April 1, 2006 (the Master Indenture ), as supplemented by the Seventh Supplemental Indenture of Trust dated as of April 1, 2006 (the Original Seventh Supplemental Indenture ), each by and between the Louisiana Citizens Property Insurance Corporation, a nonprofit corporation and political instrumentality established by the State of Louisiana (the Corporation ), and Regions Bank, Baton Rouge, Louisiana, as trustee (the Trustee ). In connection with the conversion and remarketing of the Series 2006C Bonds, the Original Seventh Supplemental Indenture will be amended and restated by the Amended and Restated Seventh Supplemental Indenture of Trust dated as of April 1, 2009 (the Amended and Restated Seventh Supplemental Indenture ), by and between the Corporation and the Trustee. The Master Indenture, together with the Original Seventh Supplemental Indenture and the Amended and Restated Seventh Supplemental Indenture, are herein referred collectively as the Indenture. The Series 2006C Bonds were originally issued for the purpose of providing funds to redeem bond anticipation notes issued to finance, on an interim basis, a portion of the Plan Year Deficit for 2005 in the FAIR Plan resulting from Hurricanes Katrina and Rita, to finance the balance of the Plan Year Deficit for 2005, to make deposits to the capitalized interest fund and the debt service reserve fund for the Series 2006C Bonds, and to pay costs of issuance. See ORIGINAL PLAN OF FINANCING herein. The Series 2006C Bonds are payable solely from and secured by the Pledged Revenues (as hereinafter defined), which include primarily the 2005 Emergency Assessments (as hereinafter defined). See SECURITY AND SOURCE OF PAYMENT herein. The Series 2006C Bonds were originally issued and will continue to be secured after the remarketing described herein on a pari passu, parity basis with the Corporation s outstanding Assessment Revenue Bonds, Series 2006B, in the original aggregate principal amount of $678,205,000 (the Series 2006B Bonds ), of which $646,405,000 will remain outstanding on and after June 1, Additional bonds may be issued on a pari passu, parity basis with the Series 2006C Bonds and the Series 2006B Bonds as described under the caption SECURITY AND SOURCE OF PAYMENT Indenture Provisions Additional Bonds herein. THE SERIES 2006C BONDS ARE OBLIGATIONS OF THE CORPORATION, PAYABLE SOLELY FROM PLEDGED REVENUES AND OTHER LAWFULLY AVAILABLE FUNDS OF THE CORPORATION. THE SERIES 2006C BONDS ARE NOT SECURED BY THE FULL FAITH AND CREDIT OF THE STATE OF LOUISIANA (THE STATE ). The Series 2006C Bonds are being remarketed in fully registered form without coupons in denominations of $5,000 or any integral multiple thereof. The Series 2006C Bonds, when remarketed, will be initially registered in the name of CEDE & CO., as nominee for The Depository Trust Company, New York, New York ( DTC ), which will act as securities depository for the Series 2006C Bonds. Purchasers of the Series 2006C Bonds will not receive certificates representing their interest in the Series 2006C Bonds purchased. Principal of and premium, if any, and interest on the Series 2006C Bonds will be payable by the Trustee to Cede & Co., which will remit such payments to the DTC Participants (as defined herein) for subsequent disbursement to purchasers of the Series 2006C Bonds. See DESCRIPTION OF THE SERIES 2006C BONDS Book Entry Only System herein. The Series 2006C-4 Bonds will be converted to the Long Term Interest Rate on April 8, 2009 (the Series 2006C-4 Conversion Date ). The Series 2006C-1 Bonds will be converted to the Long Term Interest Rate on April 22, 2009 (the Series 2006C-1 Conversion Date ). The Series 2006C-2 Bonds will be converted to the Long Term Interest Rate on April 29, 2009 (the Series 2006C-2 Conversion Date ). The Series 2006C-3 Bonds will be converted to the Long Term Interest Rate on May 6, 2009 (the Series 2006C-3 Conversion Date and, together with the Series 2006C-1 Conversion Date, the Series 2006C-2 Conversion Date and the Series 2006C-4 Conversion Date, the Conversion Dates ). On and after the respective Conversion Dates of each Subseries of the Series 2006C Bonds: (i) interest on the Series 2006C Bonds will be payable on each June 1 and December 1, commencing June 1, 2009, until maturity or prior redemption; and (ii) the Series 2006C Bonds will bear interest at a Long Term Interest Rate in accordance with the terms of the Amended and Restated Seventh Supplemental Indenture and as described herein under DESCRIPTION OF THE SERIES 2006C BONDS herein, and will no longer be subject to conversion to a different interest rate mode. The Series 2006C Bonds will be subject to optional redemption prior to maturity. See DESCRIPTION OF THE SERIES 2006C BONDS Redemption of the Series 2006C Bonds Prior to Maturity herein. The Series 2006C Bonds will mature in each of the years and bear interest at the rates shown on the inside cover page hereof. On the date of the original issuance of the Series 2006C Bonds, CIFG Assurance North America, Inc. ( CIFG ) issued a financial guaranty insurance policy (the Original Bond Insurance Policy ) insuring the payment of the principal of and the interest on the Series 2006C Bonds. In connection with the conversion of the interest rate on the Series 2006C Bonds from the Auction Mode Rate to the Long Term Interest Rate, the Corporation has determined that it is in the best interest of the Corporation to cancel the Original Bond Insurance Policy. A portion of such Original Bond Insurance Policy will be cancelled on each respective Conversion Date in the amount of $75,000,000 and will be evidenced by the execution on each such Conversion Date of the Financial Guaranty Insurance Policy Cancellation Agreement dated the respective Conversion Date among the Corporation, the Trustee, Raymond James & Associates, Inc. and Morgan Keegan & Company, Inc., as co-remarketing agents (collectively, the Remarketing Agents ) as sole holder of the Series 2006C Bonds and CIFG. On and after the applicable Conversion Date, the applicable Subseries of the Series 2006C Bonds will no longer be entitled to the benefits of the Original Bond Insurance Policy. On and after the respective Conversion Dates of each Subseries of the Series 2006C Bonds, the scheduled payment of principal and interest on such Subseries of the Series 2006C Bonds when due will be guaranteed under a financial guaranty insurance policy to be issued concurrently with the delivery of such Subseries of the Series 2006 Bonds by Assured Guaranty Corp. ( Assured Guaranty ). This cover page contains information for quick reference only. It is not a summary of this issue. Investors must read the entire Reoffering Circular, including all Appendices attached hereto, to obtain information essential to the making of an informed investment decision. Raymond James & Associates, Inc. and Morgan Keegan & Company, Inc. are serving as co-remarketing agents (collectively, the Remarketing Agents ) in connection with the remarketing of the Series 2006C Bonds. Certain legal matters will be passed upon by Breazeale, Sachse & Wilson, L.L.P., Baton Rouge, Louisiana, Bond Counsel. Certain legal matters will be passed upon for the Remarketing Agents by their counsel, McGlinchey Stafford PLLC, New Orleans, Louisiana. Certain legal matters will be passed upon for the Corporation by its counsel, Paige Harper, General Counsel to the Corporation. Certain federal tax matters will be passed upon by Nixon Peabody LLP, Washington, D.C. It is expected that (a) the Series 2006C-4 Bonds being remarketed hereby will be available for delivery in book-entry only form to DTC, New York, New York, on or about April 8, 2009, against payment therefor, (b) the Series 2006C-1 Bonds being remarketed hereby will be available for delivery in book-entry only form to DTC, New York, New York, on or about April 22, 2009, against payment therefor, (c) the Series 2006C-2 Bonds being remarketed hereby will be available for delivery in book-entry only form to DTC, New York, New York, on or about April 29, 2009, against payment therefor and (d) Series 2006C-3 Bonds being remarketed hereby will be available for delivery in book-entry only form to DTC, New York, New York, on or about May 6, 2009, against payment therefor. The date of this Reoffering Circular is March 31, Morgan Keegan & Company, Inc.

2 $300,000,000 LOUISIANA CITIZENS PROPERTY INSURANCE CORPORATION Assessment Revenue Bonds, Series 2006C MATURITY SCHEDULE (Base Cusip ) $75,000,000 Series 2006C-1 Due June 1 Principal Amount Interest Rate Yield CUSIP 2012 $ 1,800, % 3.570% CG ,860, CH ,945, CJ ,045, CK ,155, CL ,280, CM ,410, CN ,570, CP ,700, CQ ,870, CR ,065, CS ,720, CT ,935, CU , CV ,135, CW2 $75,000,000 Series 2006C-2 Due June 1 Principal Amount Interest Rate Yield CUSIP 2026 $ 75,000, % 6.350% CX0 $75,000,000 Series 2006C-3 Due June 1 Principal Amount Interest Rate Yield CUSIP 2025 $ 75,000, % 6.330% CY8 $75,000,000 Series 2006C-4 Due June 1 Principal Amount Interest Rate Yield CUSIP 2009 $ 16,350, % 2.750% CZ ,670, DA ,745, DB ,235, DC5

3 OFFICIALS PARTICIPATING IN THE CONVERSION AND REMARKETING OF THE SERIES 2006C BONDS Governing Board of Directors Chairperson Denise Brignac Jim Napper Representative Chuck Kleckley Senator Eric LaFleur Representative Sam Little Senator Dan Morrish Lee Mallett Jody Boudreaux Eric Berger Senior Management John Wortman, Chief Executive Officer Steve Cottrell, Chief Financial Officer Financial Advisor Government Consultants of Louisiana, Inc. Bond Counsel Breazeale, Sachse & Wilson, L.L.P. Corporation Counsel Paige Harper, General Counsel Special Tax Counsel Nixon Peabody LLP Remarketing Agents Raymond James & Associates, Inc. Morgan Keegan & Company, Inc. Remarketing Agents' Counsel McGlinchey Stafford PLLC

4 No dealer, broker, salesperson or other person has been authorized by the Corporation or the Remarketing Agents to give any information or to make any representations, other than those contained in this Reoffering Circular, and, if given or made, such other information or representations must not be relied upon as having been authorized by the Corporation or the Remarketing Agents. This Reoffering Circular does not constitute an offer of sell or the solicitation of any offer to buy, nor shall there be any sale of the Series 2006C Bonds by any person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. The information set forth herein concerning The Depository Trust Company ("DTC") has been furnished by DTC, and no representation is made by the Corporation or the Remarketing Agents as to the completeness or accuracy of such information. The Remarketing Agents have reviewed the information in this Reoffering Circular in accordance with, and as part of, its responsibilities to investors under the federal securities law as applied to the facts and circumstances of this transaction, but the Remarketing Agents do not guarantee the accuracy or completeness of such information. Assured Guaranty makes no representation regarding the Series 2006C Bonds or the advisability of investing in the Series 2006C Bonds. In addition, Assured Guaranty has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Reoffering Circular or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding Assured Guaranty supplied by Assured Guaranty and presented under the headings "BOND INSURANCE" and "RESERVE FUND INSURANCE" and "APPENDIX F SPECIMEN FINANCIAL GUARANTY INSURANCE POLICY" attached hereto. All of the information set forth herein has been obtained from the Corporation and other sources which are believed to be reliable but is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation by, the Remarketing Agents. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Reoffering Circular nor any sales made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Corporation, Assured Guaranty or DTC since the date hereof. In connection with the remarketing of the Series 2006C Bonds, the Remarketing Agents may overallot or effect transactions which stabilize or maintain the market price of the Series 2006C Bonds offered hereby at a level above that which might otherwise prevail in the open market, and such stabilizing, if commenced, may be discontinued at any time. The Remarketing Agents may offer and sell the Series 2006C Bonds to certain dealers and others at prices or yields lower than the public offering prices or yields stated on the inside cover page of this Reoffering Circular, and such public offering prices or yields may be changed from time to time by the Remarketing Agents. The registration, qualification or exemption of the Series 2006C Bonds in accordance with the applicable securities law provision of the jurisdictions in which these securities have been registered, qualified or exempted does not mean that either these jurisdictions or any of their agencies have passed in any way upon the merits or qualifications of, or recommended, the securities, or their offer or sales. Neither these jurisdictions nor any of their agencies have

5 guaranteed or passed upon the safety of the Series 2006C Bonds as an investment, upon the probability of any earnings thereon or upon the accuracy or adequacy of this Reoffering Circular. The Series 2006C Bonds have not been registered with the Securities and Exchange Commission under the Securities Act of 1933, as amended. In making an investment decision, investors must rely on their own examinations of the Corporation and the terms of the offering, including the merits and risks involved. The statements contained in this Reoffering Circular, and in other information provided by the Corporation that are not purely historical, are forward looking statements. All forward looking statements included in this Reoffering Circular are based on information available to the Corporation on the date hereof, and the Corporation does not assume any obligation to update any such forward looking statements. See "FORWARD LOOKING STATEMENTS" herein.

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7 TABLE OF CONTENTS INTRODUCTION...1 The Corporation and its Governing Authority...2 Authority for Original Issuance and Remarketing...2 Remarketing of Series 2006C Bonds...2 Emergency Assessment Stabilization Fund...3 Reserve Fund Insurance Policy...3 Bond Insurance...3 Operational and Financial Information About the Corporation...3 Tax Exempt Status of the Series 2006C Bonds...4 Form and Denominations...4 Date, Manner and Place of Delivery...4 Additional Information...4 PLAN OF FINANCE...5 Original Plan of Finance Plan of Finance for Series 2006C Bonds...7 Security for the Series 2006C Bonds...8 Place of Payment...9 Payment of Interest...9 Maturities...9 LEVY OF EMERGENCY ASSESSMENTS ON DIRECT WRITTEN PREMIUM...9 Subject Lines of Business...9 Statewide Direct Written Premium...10 Quarterly Collections of 2005 Emergency Assessments...12 AGREEMENT WITH THE DEPARTMENT OF INSURANCE...12 SOURCES AND USES...14 DEBT SERVICE PAYMENTS...15 DESCRIPTION OF THE SERIES 2006C BONDS...16 General...16 Book Entry Only System...16 Payment of the Series 2006C Bonds...19 Redemption of Series 2006C Bonds Prior to Maturity...19 SECURITY AND SOURCE OF PAYMENT...21 General...21 Limited Obligations...21 Assessment Authority...21 Tax Credit for Affected Policyholders...24 Perfection of Security Interest...24 Indenture Provisions...25

8 BOND INSURANCE...29 The Insurance Policy...29 The Insurer...30 CANCELLATION OF ORIGINAL SERIES 2006C BOND INSURANCE POLICY...32 RESERVE FUND INSURANCE...32 THE CORPORATION...33 History of Plans...33 Creation of the Corporation...34 Governing Board...35 Corporation Management...37 Disclosure Regarding Former Chief Executive Officer...37 Officers...37 Regulatory Oversight...38 Operational Matters...38 Policies Written...39 Premiums and Rates...40 Operations of the Corporation...40 Effect of Hurricanes Gustav and Ike on Operations...41 LOSS EXPOSURE AND LOSS ESTIMATION...41 THE PLAN OF OPERATION...43 Regular Assessments...43 Emergency Assessments...44 RISK FACTORS...46 Security Interest Limited to Pledged Revenues...46 Timely Remittance of Emergency Assessments...46 Possible Changes in the Market for Property Insurance...47 Resources Available for Future Deficits...47 Future Legislative and Regulatory Changes...48 Municipal Bankruptcy Proceedings...48 Investment Risk...49 Enforceability of Remedies...49 Litigation...49 Exclusion of Interest from Gross Income...49 PENDING LITIGATION...50 RATINGS...51 PURCHASE AND REMARKETING...51 FORWARD LOOKING STATEMENTS...52

9 TAX EXEMPTION...52 Federal Tax-Exemption...52 General...53 Alternative Minimum Tax Considerations...54 Tax Treatment of Original Issue Premium...54 Tax Treatment of Original Issue Discount...54 Louisiana Taxes...55 Legal Opinion...55 FINANCIAL ADVISOR...56 CONTINUING DISCLOSURE...56 CERTIFICATION AS TO REOFFERING CIRCULAR...56 Appendix "A" Appendix "B" Appendix "C" Appendix "D" Appendix "E" Appendix "F" Summary of the Indenture Unaudited Financial Statements of the Corporation for Fiscal Year Ended December 31, 2008 Original Opinion of Special Tax Counsel and Proposed Form of Opinion of Special Tax Counsel Proposed Form of Opinion of Bond Counsel Continuing Disclosure Agreement Specimen Financial Guaranty Insurance Policy

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11 REOFFERING CIRCULAR $300,000,000 LOUISIANA CITIZENS PROPERTY INSURANCE CORPORATION ASSESSMENT REVENUE BONDS, SERIES 2006C Consisting of Subseries Principal Amount Conversion Date 2006C-4 $75,000,000 April 8, C-1 $75,000,000 April 22, C-2 $75,000,000 April 29, C-3 $75,000,000 May 6, 2009 INTRODUCTION This Reoffering Circular of the Louisiana Citizens Property Insurance Corporation, a nonprofit corporation and political instrumentality of the State of Louisiana (hereinafter referred to as the "Corporation") provides information with respect to the conversion of the interest rate on the Series 2006C Bonds from the Auction Mode Rate to the Long Term Interest Rate and the remarketing by the Corporation of its $300,000,000 Assessment Revenue Bonds, Series 2006C, originally issued in four subseries: Series 2006C-1, Series 2006C-2, Series 2006C-3 and Series 2006C-4, each subseries in the principal amount of $75,000,000 (each a "Subseries" and collectively, the "Series 2006C Bonds"). This Introduction is subject in all respects to more complete information contained in this Reoffering Circular and should not be considered to be a complete statement of the facts necessary for making an investment decision. Capitalized terms used in this Introduction are defined elsewhere in this Reoffering Circular. The material contained herein is presented in conjunction with the remarketing of the Series 2006C Bonds in order that those interested in their purchase may have available adequate information on which to judge their merits. Brief descriptions of the Corporation, the Series 2006C Bonds, the Indenture and the Citizens Act are contained in the Reoffering Circular. Such descriptions do not purport to be comprehensive or definitive and are qualified in their entirety by reference to such documents. The Citizens Act provides that the Corporation is a nonprofit corporation and is considered a political instrumentality of the State of Louisiana (the "State") but not a department, unit, or agency of the State. The assets of the Corporation are not considered part of the general fund of the State. THE SERIES 2006C BONDS ARE OBLIGATIONS OF THE CORPORATION, PAYABLE SOLELY FROM PLEDGED REVENUES AND OTHER LAWFULLY AVAILABLE FUNDS OF THE CORPORATION. THE SERIES 2006C BONDS ARE NOT SECURED BY THE FULL FAITH AND CREDIT OF THE STATE. A Summary of the Master Indenture and the Amended and Restated Seventh Supplemental Indenture of Trust are included as Appendix "A" hereto. The unaudited financial statements for fiscal year ended December 31, 2008 are included as Appendix "B" hereto. Audited financial statements for fiscal years ended December 31, 2005, 2006 and 2007 are currently available from the Corporation s website ( The original opinion of Nixon Peabody LLP, Special Tax Counsel, and the proposed form of opinion of Special Tax Counsel, are included as Appendix "C" and Appendix "C-1" hereto. The proposed form of opinion of Breazeale, Sachse & Wilson, L.L.P., Bond Counsel, is included as Appendix "D" 1

12 hereto. The Continuing Disclosure Agreement executed and delivered by the Corporation on April 11, 2006, in connection with the original issuance of the Series 2006C Bonds, is included as Appendix "E" hereto. A specimen Financial Guaranty Insurance Policy is included as Appendix "F" hereto. The Corporation and its Governing Authority The Louisiana Citizens Property Insurance Corporation is the issuer of the Series 2006C Bonds. The governing authority of the Corporation is the Board of Directors of the Louisiana Citizens Property Insurance Corporation (the "Governing Board"). See "THE CORPORATION" herein. Authority for Original Issuance and Remarketing The original issuance of the Series 2006C Bonds was authorized under the provisions of Subpart B of Part XXX of Chapter 1 of Title 22 of the Louisiana Revised Statutes of 1950, as amended, being La. R.S. 22:1430 et seq., as further amended by Act No. 13 of the 1st Extraordinary Session of 2006 of the Louisiana Legislature and redesignated La. R.S. 22:2291 et seq., by the Louisiana Legislature by Act 415 of 2008 (the "Citizens Act") and Chapter 13 of Title 39 of the Louisiana Revised Statutes of 1950, as amended, being La. R.S. 39:1421 et seq. (the "Bond Act" and, together with the Citizens Act, the "Act"), and also by a Plan of Operation (the "Plan of Operation") adopted by the Governing Board of the Corporation, approved by the Louisiana Senate Committee on Insurance and the Louisiana House Committee on Insurance (the "Insurance Committees"), and filed with the Office of Property and Casualty of the Louisiana Department of Insurance (the "Department of Insurance"), as required by the Citizens Act. Remarketing of Series 2006C Bonds The Series 2006C Bonds will be dated their respective Conversion Dates. The interest rate on the Series 2006C Bonds is being converted from the Auction Mode Rate to the Long Term Interest Rate (as such terms are hereinafter defined) pursuant to the provisions of the Amended and Restated 2005 FAIR Plan Emergency Assessment Master Indenture of Trust, dated as of April 1, 2006 (the "Master Indenture"), between the Corporation and Regions Bank, as trustee (the "Trustee"), as supplemented by the Seventh Supplemental Indenture of Trust dated as of April 1, 2006 (the "Original Seventh Supplemental Indenture"). In connection with the conversion of the interest rate from the Auction Mode Rate to the Long Term Interest Rate and the remarketing of the Series 2006C Bonds, the Original Seventh Supplemental Indenture will be amended and restated by the Amended and Restated Seventh Supplemental Indenture of Trust dated as of April 1, 2009 (the "Amended and Restated Seventh Supplemental Indenture"), by and between the Corporation and the Trustee. The Master Indenture, together with the Original Seventh Supplemental Indenture and the Amended and Restated Seventh Supplemental Indenture, are herein referred collectively to as the "Indenture." In addition, the conversion of the interest rate on the Series 2006C Bonds and remarketing of the Series 2006C Bonds were authorized by a duly adopted resolution of the Governing Board on March 12, On the respective Conversion Dates (as hereinafter defined) for each Subseries of the Series 2006C Bonds, the interest rate on each Subseries of the Series 2006C Bonds will be converted from the Auction Mode Rate to the Long Term Interest Rate in accordance with the 2

13 provisions of the Indenture. See "PLAN OF FINANCE 2009 Plan of Finance for Series 2006C Bonds" herein. Emergency Assessment Stabilization Fund No proceeds of the Series 2006B Bonds or the Series 2006C Bonds were deposited in the Emergency Assessment Stabilization Fund on the date of original issuance of the Series 2006B Bonds and the Series 2006C Bonds; rather, the Indenture required deposits to be made from time to time from the 2005 Emergency Assessments that were initially received, until the amounts on deposit in the Emergency Assessment Stabilization Fund equaled the Emergency Assessment Stabilization Fund Requirement. The Emergency Assessment Stabilization Fund is fully funded for the Bond Year ending June 30, 2009 from collections of 2005 Emergency Assessments in an amount equal to the Emergency Assessment Stabilization Fund Requirement. Currently, there is $83,011,463 on deposit in the Emergency Assessment Stabilization Fund. The Emergency Assessment Stabilization Fund Requirement is adjusted annually on each July 1. For more information, including a definition of the 2005 Emergency Assessment Minimum Levy Requirement, see "SECURITY AND SOURCE OF PAYMENT" herein. Reserve Fund Insurance Policy In lieu of funding the Debt Service Reserve Fund Requirement allocable to the Series 2006C Bonds with proceeds of the Series 2006C Bonds or other cash, Assured Guaranty, at the request of the Corporation, is issuing a financial guaranty insurance policy to be deposited in the Debt Service Reserve Fund (the "Reserve Fund Insurance Policy") on April 8, Once Assured Guaranty has issued its Reserve Fund Insurance Policy, the surety bond issued by Ambac Assurance Corporation on April 11, 2006 relating to the Series 2006C Bonds (the "Original Surety Bond") will be terminated but only with respect to the Series 2006C Bonds and the Original Surety Bond will continue to fund, together with cash on deposit in the Debt Service Reserve Fund, the Debt Service Reserve Fund Requirement for the Series 2006B Bonds until the Series 2006B Bonds are no longer Outstanding. Thereafter, the Original Surety Bond will be of no force and effect and the funds on deposit in the Debt Service Reserve Fund allocable to the Series 2006B Bonds will remain on deposit in the Debt Service Reserve Fund and will provide additional security for the Series 2006C Bonds. See "RESERVE FUND INSURANCE" herein. Bond Insurance On and after the respective Conversion Date for each Subseries of the Series 2006C Bonds, the scheduled payment of principal and interest on each Subseries of the Series 2006C Bonds when due will be guaranteed under a financial guaranty insurance policy (each, a "Policy") to be issued concurrently with the delivery of each Subseries of the Series 2006C Bonds by Assured Guaranty Corp. ("Assured Guaranty" or the "Insurer"). See "BOND INSURANCE" herein and "APPENDIX F SPECIMEN FINANCIAL GUARANTY INSURANCE POLICY" attached hereto. Operational and Financial Information About the Corporation This Reoffering Circular includes information about the governance, management, and business operations of the Corporation. The unaudited financial statements for fiscal year ended December 31, 2008 are included as Appendix "B" hereto and audited financial statements for 3

14 fiscal years ended December 31, 2005, 2006 and 2007 have been filed with the Department of Insurance and are currently available from the Corporation s website ( For more information, see Appendix "B". The Corporation is authorized to use any funds available to it to pay the principal and interest of the Series 2006C Bonds, but it has not pledged any funds or property other than the Pledged Revenues to secure payment of the Series 2006C Bonds. Accordingly, the operational and financial information about the Corporation is being provided only as evidence of the resources available to pay future storm losses using internally generated funds. Tax Exempt Status of the Series 2006C Bonds The remarketing and delivery of the Series 2006C Bonds is subject to the opinion of Breazeale, Sachse & Wilson, L.L.P., Baton Rouge, Louisiana, Bond Counsel, to the effect that under existing law, the conversion from the Auction Mode Rate to the Long Term Interest Rate is permitted under the Citizens Act, the Master Indenture and the Original Seventh Supplemental Indenture, and subject to the opinion of Nixon Peabody LLP, Washington, D.C., Special Tax Counsel, to the effect that under existing law, the conversion from the Auction Mode Rate to the Long Term Interest Rate will not in and of itself cause interest on the Series 2006C Bonds to be included in gross income of the owners thereof for federal income tax purposes. Form and Denominations The Series 2006C Bonds are being remarketed as fully registered bonds in "book-entry only" form and registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository for the Series 2006C Bonds, and purchasers of the Series 2006C Bonds will not receive certificates representing their interest in the Series 2006C Bonds purchased. The Series 2006C Bonds are in the denomination of $5,000 or any integral multiple thereof within a single maturity. Date, Manner and Place of Delivery It is expected that the Series 2006C Bonds being remarketed will be delivered in bookentry only form through the facilities of DTC in New York, New York, on or about April 8, 2009 (in the case of the Series 2006C-4 Bonds), April 22, 2009 (in the case of the Series 2006C-1 Bonds), April 29, 2009 (in the case of the Series 2006C-2 Bonds) and May 6, 2009 (in the case of the Series 2006C-3 Bonds), and in each case against payment therefor in immediately available funds payable to the Corporation. Additional Information For any additional information concerning the Corporation, please address Mr. Steve Cottrell, Chief Financial Officer, Louisiana Citizens Property Insurance Corporation, 433 Metairie Road, Suite 400, Metairie, Louisiana, (telephone (504) or address scottrell@lacitizens.com). For additional information concerning the Series 2006C Bonds being reoffered for sale, please address the Corporation s Bond Counsel, Breazeale, Sachse & Wilson, L.L.P. (Attention: Richard D. Leibowitz, Esq.), One American Place, 19th Floor, Baton Rouge, Louisiana, (telephone (225) or address: rdl@bswllp.com) or the Corporation s Financial Advisor, Government Consultants of Louisiana, 4

15 Inc. (Attention: Gordon King), 700 North 10 th Street, Annex Building, Baton Rouge, Louisiana (telephone (225) or address: Original Plan of Finance PLAN OF FINANCE 2005 Plan Year Deficit Resulting from Storm Damage The Corporation operates two residual market insurance programs, called the FAIR Plan and the Coastal Plan (collectively, the "Insurance Plans"). The Citizens Act directs the Corporation to operate the Insurance Plans exclusively as residual market mechanisms to provide essential property insurance for residential and commercial property for applicants who are in good faith entitled, but are unable, to procure insurance through the voluntary market. Before the Corporation was created, there were two predecessor residual market insurance plans established by previous acts of the Louisiana Legislature that were substantially similar in their purpose as the Insurance Plans. Those predecessor plans continue to operate but ceased writing new or renewal business as of December 31, The Citizens Act directed the Corporation to begin operating the Insurance Plans on January 1, See "THE CORPORATION" herein. The Citizens Act and the Plan of Operation establish a process by which the Corporation may levy assessments in order to recover a deficit for an Insurance Plan (a "Plan Year Deficit") in a particular calendar year (a "Plan Year"). The assessments apply with respect to insurance policies issued under the following lines of property insurance: fire, allied lines, homeowners multiperil, and the property insurance portion of commercial multiperil (the "Subject Lines of Business"). The assessments are based on the premiums charged for the policies ("Direct Written Premium"). To recover a deficit, the Corporation may levy a regular assessment ("Regular Assessments") on insurance companies authorized to write the Subject Lines of Business in the State ("Affected Insurance Companies") and emergency assessments ("Emergency Assessments") on policyholders insured by policies issued under the Subject Lines of Business in the State by the Affected Insurance Companies and the Corporation ("Affected Policyholders"). When the Corporation levies a Regular Assessment, it must also impose market equalization charges ("Market Equalization Charges") on policyholders insured by the Corporation. See "THE PLAN OF OPERATION" herein. On August 29, 2005, Hurricane Katrina struck the States of Louisiana, Mississippi, and Alabama, as a strong Category 3 storm. A storm surge from Katrina breached the levee system that protected the City of New Orleans. Much of the city was subsequently flooded. The damage inflicted by Katrina was approximately $75 billion, making it the most destructive and costliest natural disaster in the history of the United States. On September 24, 2005, Hurricane Rita struck the States of Louisiana and Texas as a Category 3 storm. Winds and a storm surge from Rita caused extensive damage in southwestern Louisiana. Total damage from Rita was approximately $10 billion. As a result of losses to property insured by the Corporation caused by Hurricanes Katrina and Rita, a Plan Year Deficit existed for both Insurance Plans with respect to the 2005 Plan Year, and on October 19, 2005, the Governing Board levied a Regular Assessment on Affected Insurance Companies. The Regular Assessment was sufficient to recover the Plan Year Deficit 5

16 with respect to the Coastal Plan but not the Plan Year Deficit with respect to the FAIR Plan. On January 19, 2006, the Governing Board determined that, as of the December 31, 2005 fiscal year-end, a negative Plan Year operating result existed in the FAIR Plan (the "2005 Plan Year Deficit"). After making certain adjustments, the Governing Board determined that the amount of the 2005 Plan Year Deficit was $953,650,859. Of this amount, $128,644,233 was recovered through the Regular Assessment levied by the Corporation, thereby leaving $825,006,626 to be financed or refinanced with the proceeds of the Series 2006B Bonds and the Series 2006C Bonds, in each case to be repaid from the Pledged Revenues. Commencing February 24, 2006, the Corporation issued multiple series of bond anticipation notes, in an aggregate principal amount of $375,000,000 (the "Bond Anticipation Notes"), to provide interim financing of a portion of the 2005 Plan Year Deficit until the Series 2006B Bonds and the Series 2006C Bonds were issued on April 11, On April 11, 2006, the Corporation issued the $678,205,000 Assessment Revenue Bonds, Series 2006B and the $300,000,000 Assessment Revenue Bonds, Series 2006C. The proceeds of the Series 2006B Bonds and the Series 2006C Bonds were used to (i) refund the Bond Anticipation Notes, (ii) fund a capitalized interest fund, (iii) fund a debt service reserve fund, and (iv) fund the claims payment fund. Levy of Regular and Emergency Assessments In order to provide for the repayment of the Series 2006B Bonds and the Series 2006C Bonds, the Governing Board agreed to levy the 2005 Emergency Assessments on Affected Policyholders for as many years as needed to repay the Series 2006B Bonds and the Series 2006C Bonds (the "2005 Emergency Assessments"). The 2005 Emergency Assessments became effective for policies issued or renewed on or after January 1, The uniform assessment percentage for the initial 2005 Emergency Assessments was 3.6%, effective January 1, 2007 and 5.0% effective January 1, The current uniform assessment percentage is 5.0%, effective January 1, The Governing Board is required by the Citizens Act and the Indenture to determine the uniform assessment percentage by August 1 st of each year, and to notify the Affected Insurance Companies of the uniform assessment percentage by September 15 th of each year. The Corporation is required by the Citizens Act and the Indenture to direct the Affected Insurance Companies to remit the 2005 Emergency Assessments directly to the Trustee, no less frequently than quarterly, and the Corporation is required by the Citizens Act and the Indenture to remit the 2005 Emergency Assessments that it collects from its policyholders to the Trustee on a quarterly basis. Pursuant to the Citizens Act, the Department of Insurance has certain responsibilities with respect to the levy and collection of Emergency Assessments. On December 22, 2005, as amended on September 28, 2006, the Department of Insurance issued a notice ("Directive 191") to all Affected Insurance Companies establishing a required procedure for the collection and remittance of Regular Assessments and Emergency Assessments. On August 29, 2007, the Department of Insurance issued Directive 198 ("Directive 198") which rescinded in its entirety Directive 191, and now provides the procedure for the collection and remittance of Regular Assessments and Emergency Assessments. See Table 5 under "SECURITY AND SOURCES OF PAYMENT Security for the Series 2006C Bonds Collection of Emergency Assessments" herein. Furthermore, the Corporation has promulgated its Regular Assessment Recoupment Procedures dated September 15, 2006, and its Emergency Assessment Collection and Remittance 6

17 Procedures dated September 15, 2006, which further establish the required procedure for the collection and remittance of Regular Assessments and Emergency Assessments. In addition, the Department of Insurance also entered into an Amended and Restated Department of Insurance Cooperative Endeavor Agreement, dated April 11, 2006 (the "DOI Agreement") with the Corporation and the Trustee, wherein the Department of Insurance has agreed to carry out its responsibilities with respect to the levy and collection of the 2005 Emergency Assessments and other matters related thereto. See "AGREEMENT WITH THE DEPARTMENT OF INSURANCE" herein Plan of Finance for Series 2006C Bonds The Series 2006C Bonds were originally issued on April 11, 2006 in the Auction Mode Rate. In order to mitigate interest rate exposure resulting from current volatility in the municipal market for auction rate securities, the Corporation has elected to convert the interest rate on the Series 2006C Bonds to the Long Term Interest Rate as permitted under the Original Seventh Supplemental Indenture. On March 12, 2009, the Corporation sent a notice of conversion of the Series 2006C Bonds (the "Notice of Conversion") to the Trustee, the Remarketing Agents, the Auction Agent and the Broker-Dealers in accordance with the provisions of the Original Seventh Supplemental Indenture. Pursuant to the provisions of the Original Seventh Supplemental Indenture, upon a conversion of the interest rate from the Auction Mode Rate to the Long Term Interest Rate, the Series 2006C Bonds are subject to mandatory tender at a purchase price of 100% of the principal amount thereof, plus accrued interest. On March 13, 2009, the Trustee sent a notice of conversion and mandatory tender of the Series 2006C Bonds to the owners of the Series 2006C Bonds. A second notice, as required by the Original Seventh Supplemental Indenture, was sent by the Trustee to the owners of the Series 2006C Bonds on March 16, The Series 2006C-4 Bonds will be converted to the Long Term Interest Rate on April 8, 2009 (the "Series 2006C-4 Conversion Date"). The Series 2006C-1 Bonds will be converted to the Long Term Interest Rate on April 22, 2009 (the "Series 2006C-1 Conversion Date"). The Series 2006C-2 Bonds will be converted to the Long Term Interest Rate on April 29, 2009 (the "Series 2006C-2 Conversion Date"). The Series 2006C-3 Bonds will be converted to the Long Term Interest Rate on May 6, 2009 (the "Series 2006C-3 Conversion Date" and together with the Series 2006C-1 Conversion Date, the Series 2006C-2 Conversion Date and the Series 2006C-4 Conversion Date, the "Conversion Dates"). On the respective Conversion Dates, the interest rate on each Subseries of the Series 2006C Bonds will be converted from the Auction Mode Rate to the Long Term Interest Rate, and the Series 2006C Bonds will be subject to mandatory tender and remarketing by the Remarketing Agents. On April 11, 2006, the date of the original issuance of the Series 2006C Bonds, CIFG Assurance North America, Inc. ("CIFG" or the "Series 2006C Bond Insurer") issued a financial guaranty insurance policy (the "Original Bond Insurance Policy") insuring the payment of the principal of and the interest on the Series 2006C Bonds. In connection with the conversion of the interest rate on the Series 2006C Bonds from the Auction Mode Rate to the Long Term Interest Rate, the Corporation has determined that it is in the best interest of the Corporation to cancel the Original Bond Insurance Policy. A portion of such Original Bond Insurance Policy will be cancelled on each respective Conversion Date in the amount of $75,000,000 and will be evidenced by the execution on each such Conversion Date of the Financial Guaranty Insurance 7

18 Policy Cancellation Agreement dated the respective Conversion Date among the Corporation, the Trustee, the Remarketing Agents (as hereinafter defined), as sole holder of the Series 2006C Bonds, and CIFG. On and after the applicable Conversion Date, the applicable Subseries of the Series 2006C Bonds will no longer be entitled to the benefits of the Original Bond Insurance Policy. On the Series 2006C-1 Conversion Date, Assured Guaranty will issue its financial guaranty insurance policy which will guarantee the scheduled payment of principal and interest on the Series 2006C-1 Bonds when due. On the Series 2006C-2 Conversion Date, Assured Guaranty will issue its financial guaranty insurance policy which will guarantee the scheduled payment of principal and interest on the Series 2006C-2 Bonds when due. On the Series 2006C- 3 Conversion Date, Assured Guaranty will issue its financial guaranty insurance policy which will guarantee the scheduled payment of principal and interest on the Series 2006C-3 Bonds when due. On the Series 2006C-4 Conversion Date, Assured Guaranty will issue its financial guaranty insurance policy which will guarantee the scheduled payment of principal and interest on the Series 2006C-4 Bonds when due. See "BOND INSURANCE" herein. Security for the Series 2006C Bonds The Series 2006C Bonds are secured by a pledge of the 2005 Emergency Assessments, the money and securities held in certain funds established under the Indenture (other than the Rebate Fund) and the interest earnings accruing to those funds (collectively, the "Pledged Revenues"). No amounts collected from the Regular Assessment or the Market Equalization Charges have been pledged to secure the Series 2006C Bonds, nor have any Emergency Assessments that might be levied with respect to a future Plan Year Deficit. See "SECURITY AND SOURCE OF PAYMENT" herein. On and after their respective Conversion Dates, the Series 2006C Bonds will continue to be secured by and payable from the Pledged Revenues, which include primarily the 2005 Emergency Assessments. The 2005 Emergency Assessments will continue to be levied and collected as described above until the Series 2006C Bonds, as well as the Series 2006B Bonds, are paid in full. In addition, on and after each respective Conversion Date, the principal of and interest on such Subseries of the Series 2006C Bonds will be insured by the respective Insurance Policy (as hereinafter defined). THE SERIES 2006C BONDS WERE ORIGINALLY ISSUED AND ARE BEING REMARKETED ON A PARI PASSU, PARITY BASIS AS TO SECURITY AND SOURCE OF PAYMENT WITH THE SERIES 2006B BONDS. Of the funds established by the Indenture, the Emergency Assessment Stabilization Fund and the Debt Service Reserve Fund are intended to provide for payment when due of the principal and interest on the Series 2006C Bonds in the event the 2005 Emergency Assessments collected in any period are insufficient to make those payments. The Emergency Assessment Stabilization Fund was created and established in connection with the original issuance of the Series 2006B Bonds and the Series 2006C Bonds, and has been fully funded for the Bond Year ending June 1, 2009 in an amount equal to the Emergency Assessment Stabilization Fund Requirement (as hereinafter defined). The Debt Service Reserve Requirement allocable to the Series 2006C Bonds will be fully funded on April 8, 2009, with a Debt Service Reserve Investment consisting of the Reserve Fund 8

19 Insurance Policy to be provided by Assured Guaranty. The Debt Service Reserve Requirement allocable to the Series 2006B Bonds will continue to be met by the surety bond issued by Ambac Assurance Corporation issued in connection with the original issuance of the Series 2006B Bonds. On and after the date the Series 2006B Bonds are no longer Outstanding, the surety bond issued by Ambac Assurance Corporation will be of no force and effect and the funds on deposit in the Debt Service Reserve Fund allocable to the Series 2006B Bonds will remain on deposit in the Debt Service Reserve Fund and will provide additional security for the Series 2006C Bonds. See "RESERVE FUND INSURANCE" herein. The Indenture also provides that additional bonds may be issued, on a parity with the Series 2006C Bonds and the Series 2006B Bonds ("Additional Bonds") only with respect to the 2005 Plan Year Deficit. For more information, including definitions of the Debt Service Reserve Fund Requirement and the 2005 Emergency Assessment Minimum Levy Requirement and the provisions for the issuance of Additional Bonds, see "SECURITY AND SOURCE OF PAYMENT - Indenture Provisions" herein. For information about the Debt Service Reserve Investment, see "RESERVE FUND INSURANCE" herein. Place of Payment Principal of the Series 2006C Bonds is payable by check or draft or wire transfer by Regions Bank, in the City of Baton Rouge, Louisiana, or any successor thereto (hereinafter referred to as the "Trustee") to Cede & Co., as nominee of DTC. Any successor Trustee shall (i) be a bank or trust company in good standing, located in or incorporated under the laws of the State, duly authorized to exercise trust powers and subject to examination by federal or state authorities, and (ii) have a reported capital and surplus of not less than $75,000,000 at the time of its appointment. Payment of Interest Interest on the Series 2006C Bonds is payable semiannually on each June 1 and December 1, commencing June 1, 2009, with interest payable by check mailed by the Trustee to the Beneficial Owners (determined as of the 15th calendar day of the month next preceding said interest payment date) in accordance with the terms of the DTC Representation Letter. See "DESCRIPTION OF THE SERIES 2006C BONDS Book Entry Only System" herein. Maturities The Series 2006C Bonds will mature on the dates and bear interest at the rates indicated on the inside front cover page of this Reoffering Circular. LEVY OF EMERGENCY ASSESSMENTS ON DIRECT WRITTEN PREMIUM Subject Lines of Business Every Affected Insurance Company is required annually and quarterly to file with the Commissioner of Insurance a true statement of its financial condition, transactions, and affairs, including a listing of the premiums received by line of business. The following descriptions, which are adapted from a manual of the National Association of Insurance Commissioners, apply to the Subject Lines of Business. 9

20 Fire Fire coverage protects the insured against the loss to real or personal property from damage caused by the peril of fire or lightning, including business interruption, loss of rents, etc. Both residential and commercial fire policies are included in this Subject Line of Business. Allied Lines Allied lines coverage is generally written with property insurance and could include glass, tornado, windstorm, and hail; sprinkler and water damage; explosion, riot, and civil commotion; and damage from aircraft and vehicle, etc. Both residential and commercial allied lines policies are included in this Subject Line of Business. Homeowners Multiperil Homeowners multiperil is generally a package policy combining broad property coverage for the personal property and/or structure with broad personal liability coverage. Coverage applies to the dwelling, appurtenant structures, and unscheduled personal property, and coverage typically extends to additional living expenses. Mobile homes at a fixed location are also covered under a homeowners multiperil policy; however, the Insurance Plans do not afford mobile home coverage on a homeowner multiperil policy form. Mobile home coverage is only provided on the standard fire policy with optional allied lines coverage available. Commercial Multiperil (Property Insurance Portion) A commercial multiperil policy is a contract for a commercial enterprise which packages two or more insurance coverages protecting an enterprise from various property and liability risk exposures. Such policies frequently include fire, allied lines, and various other coverages including liability. In general, commercial multiperil policies are typically purchased by businesses such as apartment buildings, offices, retail outlets, motels, restaurants, dry cleaners, and convenience stores. However, businesses such as grocery stores or hotel chains, shopping malls, manufacturing, or refining facilities may also purchase commercial multiperil policies. The property insurance portion normally covers buildings and other structures (leased or owned); furniture, equipment, and supplies; inventory; data processing equipment; and outdoor property not attached to a building. The property insurance portion covers against losses caused by fire, lightning, windstorm, hail; and aircraft and vehicles that damage the property of the insured. The Insurance Plans only afford coverage for the property insurance portion of the commercial multiperil policy. Statewide Direct Written Premium For any assessment year, Emergency Assessments are assessed as a uniform percentage of the statewide Direct Written Premium for policies in the Subject Lines of Business issued by the Affected Insurance Companies and the Direct Written Premium for policies issued by the Corporation. See "SECURITY AND SOURCE OF PAYMENT - Assessment Authority" herein. Table 1 shows the dollar amount of the statewide Direct Written Premium over the past ten years. Table 2 shows the top ten insurance companies for the year 2007, based on the dollar amount of Direct Written Premium for the Subject Lines of Business, including Affected 10