Louisiana Governor Kathleen Blanco (D) and Insurance Commissioner Jim Donelon (R) have been given major victories by state lawmakers who approved legislation abolishing the nation’s only state insurance regulatory panel, the Louisiana Insurance Rating Commission, and authorized the state-run insurance company, Citizens Property Insurance Corporation, to pass some of its policies along to private insurers. 

House Bill 960, approved by the Senate, will do away with the seven-member rating commission effective January 1.  Senate Bill 205, which will set up a consumer advocate’s office in the state Insurance Department by October 1, was approved by the House.  Senate Bill 153, which allows Citizens to solicit bids from private insurers, was approved by the House.  Another bill by Governor Blanco creates a $100 million grant program for private insurers, provided they write at least 25 percent of their new business from Citizens. And another bill provides for premium discounts for compliance with building codes and for damage mitigation.

July 3, 2007