Governor Jeff Landry, Insurance Commissioner Tim Temple at odds over auto insurance reform bill HB 576

From left: Jeff Landry, Tim Temple (photos courtesy of Wikimedia Commons)

Governor Landry and Insurance Commissioner Tim Temple are on opposite sides of an auto insurance reform bill proposed by a Democratic representative that has advanced to the full House. HB 576 by Robbie Carter of Amite would give the insurance commissioner the power to reject auto insurance rates that he believes to be unreasonable. Following debate, the House Insurance Committee advanced it on a vote of 13-4. Landry testified before the committee in support of the bill, saying insurance companies are charging exorbitant premiums despite taking in $1.4 billion dollars more than they pay in claims. Because of this, Landry says the insurance commissioner should have the ability to clamp down on those premiums.

“In all of our neighboring states around us, the insurance commissioners can review rates and reject them if they are excessive if the profits are unreasonable, like it seems to be here in Louisiana,” Landry said.

Landry says since auto insurance is a mandated purchase, free market principles should not apply; and giving the insurance commissioner the ability to reject rates regardless of market conditions should provide relief to policyholders.

“If we empower the insurance commissioner with the ability to hold those that are profiting off of our misery accountable, then we’ll have the power to ensure that the rates are lowered every time you touch the law,” Landry said.

Insurance Commissioner Tim Temple, also a Republican, testified against the bill, urging the committee to reject it because it would undo all the progress that he’s made with insurance carriers over the last year.

“This is more red tape. This is more regulation. This moving toward the direction of California,” Temple said.

Temple says there is too much of a good thing, and insurance commissioners having too much power over insurance carriers will drive them out of the state.

“This law is going to propose that, instead of us checking to make sure 2+2=4, that I have the power to say ‘2+2=3.’ That’s not what we want,” Temple said.