REFORMS PLANNED FOR LA

Acting Louisiana Insurance Commissioner J. Robert Wooley is soliciting information from the insurance industry on the current regulatory and legislative climate in the state, a move toward insurance reform that, according to the National Association of Independent Insurers (NAII), is being praised by property/casualty insurers. The NAII is providing feedback to Wooley on the market. NAII counsel Greg LaCost said “Louisiana’s outdated and restrictive insurance laws stifle competition.” He praised Wooley’s attempts to streamline the process of filing forms and said NAII is “pleased to see him leading the charge to modernize Louisiana’s insurance laws as well.” In a letter to Wooley, LaCost pointed out that the cost of doing business in the state is high and the inability of insurers to adequately price products because of tight rate restrictions required by the Louisiana Insurance Rating Commission makes conditions “extremely harsh.” LaCost advocated rate modernization based on Illinois’ competitive insurance market and said a temporary file-and-use or flex band system would help in the short run. He added that reducing the jury threshold limit, phasing in mandatory arbitration, modifying the comparative negligence statute, and adding a viable fraud law would help lower costs.

Topics Louisiana