La. Insurance Regulatory Panel Approves Rate Hikes at Final Meeting

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At its final meeting on Dec. 19, the Louisiana Insurance Rating Commission – which will officially be abolished next month – approved homeowners rate increases for two insurance carriers.

The Legislature approved a bill this year to dissolve the LIRC in response to complaints from the industry that the panel is a hindrance to doing business in the state. The dissolution was supported by Gov. Kathleen Blanco and Insurance Commissioner Jim Donelon.

The panel, made up of political appointees, had the power to block certain rate increases. Its regulatory duties now move to the state Department of Insurance – which has created a new consumer advocacy office after critics worried that dissolving the LIRC would also dissolve policyholders’ forum for complaints about insurers.

The panel approved rate increases for:

-17.4 percent for Fidelity National Insurance Company, affecting 781 policyholders, a change totaling roughly $187,000.
-18.6 percent for Hartford Insurance Company of the Midwest, affecting 9,863 policyholders for a total of about $1.6 million.

The meeting was concluded by Chad Brown, a top Donelon aide and the panel’s chairman.

“The Louisiana Insurance Rating Commission is adjourned – permanently,” he said.

Brown said the insurance department hasn’t decided how it will make public future insurance rate requests, and the agency’s approval or rejection of the requests. Brown said the information would probably be released on the Internet.