Task Force Created to Expand Markets in Louisiana

The Independent Insurance Agents and Brokers of Louisiana (IIABL) has established a Markets Task Force to bring insurance company markets back to Louisiana. According to the IIABL, the mission of the task force is to convince insurance companies of the economic opportunities to sell insurance in Louisiana, and expand the number of markets available to independent agents. Marc Eagan, of Eagan Insurance Agency in Metairie, is the task force chairperson.
The first charge of the task force is to develop a good story to tell insurance company executives about what is good and right with the Louisiana insurance market. Insurance companies frequently have negative impressions about Louisiana and are not aware of the many positive aspects to conducting business in the state. The task force will produce a top quality booklet, to help educate insurance company executives about the benefits of conducting business in Louisiana.

The centerpiece of the story will be the important legislative changes made this year. Flex-Band Rating and the FAIR Plan Reform legislation have received very positive reviews from insurance companies. This good news should open the door for discussions on many positive reasons insurers should return to Louisiana.

Suggested topics for discussion include:

1. Regulatory Reform
A. Flex-Band rating reforms and rate increases approved by LIRC.
B. Reform minded Insurance Commissioner Robert Wooley.
C. LDI staff and procedures have been dramatically improved.
D. Vastly improved speed to market on forms approval, rates, etc.
E. LDI has resolved industry problems including pollution, terrorism and mold.

2. Tort Reform
A. Punitive damages are generally not allowed.
B. Joint & several liability was repealed.
C. Strict liability of property owners was repealed—only liable to extent negligent.
D. Liability claims are
prescribed after one year.

3. Property Insurance
A. Citizens Property Insurance Corporation—Reform of FAIR & Coastal Plans.
B. FAIR & Coastal Plans rate increases of 67.7 percent in last three years.
C. Louisiana has undeveloped coastline and limited hurricane exposure.
D. Statutory licensing of mold remediation contractors.

4. Workers’ Compensation
A. No pool or assessments from the residual workers’ comp market (handled by LWCC).
B. One of the most conservative statutory benefits in the country.
C. Disputes must be referred to Administrative Law Judges.
D. Legal fees limited to 20 percent of first $10,000 and 10 percent on excess.
E. Workers’ Compensation is sole remedy—extremely limited tort actions.
F. Medical Fee Schedule limits medical costs.
G. Injuries involving horseplay, fights, drugs, etc. are excluded from workers’ comp.

5. Automobile Insurance
A. Uninsured motorist rejections are statutorily presumed informed and valid.
B. Statutory authority to exclude named drivers.
C. No-Pay No-Play limitation of recovery for uninsured motorists.
D. Accident reports are available only to parties involved in the accident.
E. Special insurance fraud investigation unit has been created.

The second charge of the task force is to aggressively bring the message to insurance company executives and sell the story. IIABL representatives will attend industry meetings and travel to insurance company home offices; and Commissioner Wooley has agreed to work with IIABL to become the “head of economic development for insurance in Louisiana.”

The third and final charge of the task force is to bring new insurance company markets together with IIABL member agents. Once companies start to return to Louisiana, IIABL will provide its membership list to insurers, and provide insurer contact information to its member agents.

Editors note: This article appeared in the October 2003 edition of the “Louisiana Agent,” a publication of the Independent Insurance Agents & Brokers of Louisiana. It can be viewed online at http://la.iiaa.org/Newsletter/October_2003.pdf.

Topics Carriers Agencies Workers' Compensation Louisiana