The Senate Insurance Committee approves legislation that would give the insurance commissioner more authority to reject rate increases without actuarial data. New Orleans Senator Royce Duplessis strongly supports the House-approved bill. Duplessis says drastic steps need to be taken to address the insurance crisis.
“This is necessary, for you as the insurance commissioner, to want this authority. And I think you need this authority,” Duplessis said.
The bill also has the support of Governor Jeff Landry. But Insurance Commissioner Tim Temple says his office already rejects rate increase proposals and the Executive Counsel for the Department of Insurance David Caldwell tried to make that point clear.
“Anybody that says that we don’t have the power to deny rates, doesn’t understand what rates are. They’re all up in the Kool-Aid. They don’t know the flavor. We have done this,” Caldwell said.
The meeting got contentious between Duplessis and Temple as the New Orleans Senator is frustrated Temple will not support this legislation.
Duplessis: “You don’t want to be blamed for insurance rates not going down. And that’s why you’re opposing this law. But you’re the insurance commissioner.”
Temple: “No, sir, this is a red herring. This is a false thing.”
Duplessis: “I think you’re push to go after lawyers and make that the big issue is the red herring.”
Temple says this proposed legislation would be over-regulation of the insurance industry and would keep companies from wanting to write policies in Louisiana.
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