ÿþ<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> <html xmlns="http://www.w3.org/1999/xhtml"> <head> <title>Jim Donelon</title> <link href="css/styles.css" type="text/css" rel="stylesheet" /> <link href="css/niftyCorners.css" type="text/css" rel="stylesheet" /> <meta name="keywords" content="Jim Donelon, Donelon, Donelon Insurance Commissioner, Louisiana Insurance Commissioner, Insurance Commissioner, Commissioner 2007, Donelon for Insurance Commissioner, Louisiana Insurance" /> <meta name="description" content="Jim Donelon for Insurance Commissioner" /> <meta name="TEOMA" content="noarchive" /> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1" /> <link rel="stylesheet" type="text/css" href="css/niftyCorners.css" /> <link rel="SHORTCUT ICON" href="JD.ico" /> <link rel="stylesheet" type="text/css" href="css/niftyPrint.css" media="print" /> <script type="text/javascript" src="js/nifty.js"></script> <script type="text/javascript"> window.onload=function(){ if(!NiftyCheck()) return; Rounded("div#box1","all","#FFF","#A90004","smooth"); Rounded("div#box2","all","#FFF","#A90004","smooth"); Rounded("div#leftcol","br,tl","#FFF","#18184A","smooth"); } </script> </head> <body> <script type="text/javascript">function Go(){return}</script> <script src="js/exmplmenu_var1.js" type="text/javascript"></script> <script src="js/menu_com.js" type="text/javascript"></script> <div id="container"> <div id="header"> <a href="index.htm"><img src="images/header.gif" alt="" /></a></div> <div id="supportingmenu"> <div id='MenuPos' style="position: relative; width:761px; height:24px; "> </div> </div> <div id="content"> <div id="supportingtitle" class="text1">News > <a href="insurancearticles.htm" class="b">Articles</a> > March 16, 2007</div> <p class="text2">Go slow on insurance changes at session</p> <p><span class="text8">Lake Charles American Press </span><br /> March 16, 2007</p> <p>The high cost and availability of property insurance are destined to become major issues in the upcoming fiscal session of the Louisiana Legislature. Two key players will be Gov. Kathleen Blanco and state Insurance Commissioner Jim Donelon. </p> <p>Donelon has a program he believes will bring some relief for property owners, but he warns lawmakers to proceed with caution. </p> <p>Abolishment of the Louisiana Insurance Rating Commission is No. 1 on Donelon s list. He also wants to strengthen the state s consumer protection law that prevents insurance companies from canceling policies of loyal customers and reform the way insurance taxes are collected. </p> <p>The commissioner wants to protect the new and tougher statewide building code and retain the requirement that the state-backed Citizens Property Insurance Co. charge 10 percent more than average rates charged within individual parishes. </p> <p>The Florida Legislature went in the opposite direction. It required rollback of insurance rates, removed the 10 to 20 percent markup on policies written by its state-run company and required insurance companies selling auto insurance in the state to offer homeowners insurance. </p> <p>Donelon said those actions have driven the private insurance market out of Florida. </p> <p>"The only way to control costs is with competition," Donelon told the Times-Picayune of New Orleans. "Politics does not do it. You can put off increases and edict decreases, but the system will ultimately collapse."</p> <p>Donelon believes Louisiana should resist major changes to insurance regulation. He is convinced a friendly atmosphere will bring companies back to Louisiana and eventually lead to lower rates.</p> <p>Holding the line on the new building code could be one of the legislative battlegrounds. Small cities and parishes are having a difficult time finding the funds to enforce the stricter construction requirements, but relief appears to be on the way. </p> <p>FEMA has approved a $14 million program to help local governments implement the code. It will be administered by the Governor s Office of Homeland Security and Emergency Preparedness. </p> <p>"In all my meetings with sectors of the insurance industry, I have been told again and again that second only to reliable levees, implementing and enforcing our statewide building codes is a must-do for affordable insurance, Blanco told The Advocate of Baton Rouge. </p> <p>Blanco and Donelon both support abolishment of the state Insurance Rating Commission that companies consider mostly an unnecessary bureaucratic roadblock to their operations. However, the governor wants to be sure there is a consumer office outside the insurance department that will field complaints from policyholders if the commission is removed. </p> <p>Donelon has been tough on insurance companies when he had to be, and legislators would be wise to seek his counsel before making any drastic changes in the state insurance climate. </p> <p>Some insurance areas may need fine-tuning, but the state needs to avoid the Florida solution that makes it difficult to retain a strong private market. </p> </div> <div id="footer"> <br /> <a href="index.htm" class="a">Home</a> | <a href="aboutjim.htm" class="a">About Jim</a> | <a href="insurancearticles.htm" class="a">Articles</a> | <a href="pressreleases.htm" class="a">Press Releases</a> | <a href="photogallery/index.html" class="a">Photo Gallery</a> | <a href="multimedia.htm" class="a">Multimedia</a> | <a href="links.htm" class="a">Links</a> | <a href="jointhecampaign/default.aspx" class="a">Join Campaign</a> | <a href="http://www.active.com/donate/jimdoneloncampaign" class="a">Contribute</a> | <a href="endorsements.htm" class="a">Endorsements</a> | <a href="contactus.htm" class="a">Contact Us</a><br /><hr style="width: 733px" /> Jim Donelon | P.O. Box 3516 | Baton Rouge, LA 70821 | 225-927-4466 | <a href ="mailto:jim@jdonelon.com" class="a">jim@jdonelon.com</a><br /><br />Paid for by Donelon 2007 </div> </div> </body> </html>