Louisiana should abolish the commission of political appointees that regulates the insurance industry, the state Senate has voted, a move supported by the insurance industry.
Senators voted 30-6 to approve a bill by Sen. Julie Quinn that would do away with the Louisiana Insurance Rating Commission, whose members are appointed by the governor and have power to block insurers’ rate hikes. Louisiana is the only state in the nation that still has such a commission, which the insurance industry says has an inappropriate level of government control over the free market.
Quinn’s bill would transfer the commission’s regulating power to the state Department of Insurance, and its consumer protection powers to the state Attorney General’s office.
“Forty-nine other states feel comfortable with their departments of insurance regulating ratemaking,” said Quinn, R-Metairie.
Sen. Robert Adley, D-Benton, cautioned that Louisiana’s insurance department has a sketchy history: three of the past five insurance commissioners have spent time in federal prison.
“If we abolish the Insurance Rating Commission, who’s going to watch the insurance commissioner?” Sen. Rob Marionneaux said.
Quinn responded: “We have to have some trust in our elected officials, whether we like it or not.”
Voting against Quinn’s bill were Sens. Cleo Fields, D-Baton Rouge; Nick Gautreaux, D-Meaux; Francis Heitmeier, D-New Orleans; Robert Kostelka, R-Monroe; Marionneaux, D-Livonia; and Joe McPherson, D-Woodworth.
A similar bill, by Rep. Karen Carter, D-New Orleans, supported by Gov. Kathleen Blanco, is awaiting debate on the House floor.
On the Net: Senate Bill 185 and House Bill 960 are posted at
http://legis.state.la.us/
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