At the legislative special session Wednesday, the Louisiana House voted for a measure (90-8) creating a 45-million dollar incentive fund that would provide grants to companies who provide homeowners insurance in Louisiana.
Baton Rouge Representative Edmond Jordan voted against it. He’s skeptical the plan will lead to a more affordable insurance market.
“I think we need some real sound, scientific backing, some data that can support what we are doing, and again I asked them to make to make it sense to me and right now it just doesn’t make sense,” said Jordan.
Plaquemine Representative Chad Brown has reservations, but still voted “yes.”
“I have constituents in my district that are considered in the coastal zone and if I can give any of those constituents some hope for relief, I’m willing to do that,” said Brown.
The goal of the program is to reduce the number of Louisiana Citizens policyholders, who pay much higher premiums than they would if they had coverage through a private insurer.
Insurance Commissioner Jim Donelon believes this legislation could reduce the number of Citizens policies by 40,000 and it needs to pass now to give companies time to get reinsurance before the start of the next hurricane season. Houma Representative Beryl Amedee says it seems like a good idea to her.
“I would prefer to fund the program now, help the few that we can, spur some competition and keep this healthy conversation going to solve our insurance crisis,’ said Amedee.
But Brown wishes Insurance Commissioner Jim Donelon presented the Legislature with additional options.
“I would all hope that we continue to pressure those that are responsible for regulating the marketplace and giving us options to be more competitive,” said Brown.
The Incentive fund legislation will be discussed in the Senate on Thursday. Meanwhile, Houma Representative Beryl Amedee says the Louisiana Legislature can propose additional ideas for the regular session that begins in April.
“Just the conversations we’ve been having for the last several weeks have brought many options, this is bill drafting time for the regular session, so let’s go,” said Amedee.
A two-month long regular session begins April 10th.
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