Hurricane Ida 2021.
A bill to create a board entitled the Louisiana Named Storm Insurance Fraud Prevention Authority passes in House Insurance on a seven to five vote. Bill author, Alexandria Representative Ed Larvadain said residents are tired of dealing with insurance fraud from hurricanes and the bill creates a 19-member authority.
“We want to look at the fraud to make sure everybody plays by the same rules. We want to make sure that we protect the market and the only way to do that is to have a committee that will look at that,” said Larvadain.
Eric Holl with Real Reform Louisiana who assisted with the creation of the bill said the authority is modeled after the Louisiana Insurance Fraud Task Force that focuses on automobile theft and insurance fraud.
“There was some consideration about trying to expand the scope of that board, to try to deal with the named storm fraud that we’re all seeing in the community that’s not currently being investigated or prosecuted,” said Holl.
Insurance Commissioner Jim Donelon also testified before the committee and said the creation of the authority is merely repetitive. Donelon claims that no other state does as much as Louisiana to prevent insurance fraud.
“And certainly, another commission doing what we already do will make no difference at all, in my opinion,” said Donelon.
The bill now heads to the House floor.
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