As recently as last week,
But in interviews Wednesday and Thursday, many lawmakers said they were not ready to commit the money to a special meeting in February — or when the Legislature convenes for its regular meeting in April. They don’t believe that Donelon’s aggressive program will reduce the state’s insurance problems.
“I need more information before I sign that,” he said
The state has seen many insurance companies go under or pull out
In joint villages
To solve this problem, Donelon wants to implement an incentive program like the one he designed after hurricanes Katrina and Rita in 2005. Insurance companies are willing to write policies for better homes. the risk that they will receive government grants to help cover their costs. The goal is to divert policies away from Louisiana Citizens, who are required by law to pay more for their insurance than in the private market.
‘Is this the right plan?’
Lawmakers first signed off on this request from Donelon during their 2022 legislative session, but they didn’t put any money behind it. Now the insurance commissioner wants it
“Do we need help with insurance? Absolutely,” Speaker
Magee and a small group do not believe in the initial stimulus of Katrina and Rita, as Donelon has repeatedly said, and they question whether the same plan should be used again.
Although many insurance companies began writing policies after Katrina and Rita, this may have been due to
‘We want good insurance companies’
Some of the smaller companies in the Katrina and Rita insurance program also expanded after Hurricane Ida, according to the Times-Picayune.
“I think Commissioner Donelon thinks that people down here are complaining about as many insurance companies as we were before and they’re not,” said Magee, who represents internal community.
According to Magee, the money may have an immediate impact if it is used directly to reduce the costs of Louisiana Citizens, where people must get insurance if they cannot get it on the private market. Sen. said.
“Half of these companies we couldn’t bring in and support,” Allain said. “I don’t know why we don’t use the money to support Citizens instead.
Magee also said that it may be better to spend money on a program that allows people in parishes affected by storms to renovate their houses with more features to protect against storms, making them it is more attractive to private companies.
‘Not on my watch’
Lawmakers have also expressed interest in using Donelon’s stimulus money to attract companies that are still working in it.
In an interview Wednesday, Donelon said the money could, and likely would, be spent on companies that are already operating.
Donelon said he will also make sure that people who led insurance companies that failed in the past are not involved in companies that have opportunities in the future.
“None of those players participate in this incentive program funded by the state,” he said.
Cause of accident
The insurance market is down
But part of the politicians’ wariness about Donelon’s program is that they don’t know which companies might benefit from it.
Cortez and Schexnayder said Thursday they want to know what specific companies are considering Donelon’s program.
Without that information, Schexnayder said put
“I want to ask about the wages they will offer,” he said.
Not all politicians are skeptical of Donelon’s plan. Cortez said he likely would support the enforcement program, even if it’s just a “Band-Aid” to temporarily eliminate some homeowners’ insurance coverage.
What is the opinion of the governor
The Gov. said
Donelon isn’t just asking politicians to give
The insurance commissioner said he needs the money quickly, before the Legislature convenes in April, so that companies that buy reinsurance — insurance for insurance companies — know what’s available to them this year. spring.
Donelon also said that the longer the state waits to establish the stimulus fund, the more families will face large increases. Louisiana Citizens fees increased 63% this year. Each month, more families will see those new price increases applied, he said.
But, it seems that Edwards will be asked to call the special session and it does not seem certain on Wednesday that it will be successful. According to him, there is a “difference of opinion that is emerging” among the politicians on whether a special meeting should be convened.
Donelon will have at least one more opportunity to convince lawmakers of the need for his program and the special meeting. He was scheduled to speak before the Legislature
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