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Louisiana Bill to Entice Carriers Advances

A bill that would provide $100 million to entice domestic insurers to pick up business from Louisiana's last-resort homeowners' carrier has been approved by that...
May 15, 2007

A bill that would provide $100 million to entice domestic insurers to pick up business from Louisiana's last-resort homeowners' carrier has been approved by that state's the House Insurance Committee. The bill is backed by Gov. Kathleen Blanco (D) and Insurance Commissioner Jim Donelon (R), who have both expressed a desire to keep existing insurers in the state, while encourage new companies to enter the market.

The bill is part of a Blanco/Donelon-backed legislative package that includes a bill that would allow private carriers to buy up blocks of policies from the Louisiana Citizens Property Insurance Corp. "Since the hurricanes, Citizens has become the third-largest insurer in the state," Blanco told the committee. "I will tell you that this is a dangerous situation for the state."

"We have too few companies holding too much risk," Blanco said. "If we can spread the risk among more insurance companies, the policyholders will be better off. We need a competitive regulatory environment while ensuring our people are afforded adequate consumer protection."

House Panel OKs Fund to Lure Insurers (New Orleans Times-Picayune 5/10/07)

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