BATON ROUGE (WGNO)— With all the hurricanes and tornadoes going on in Louisiana: Insurance Commissioner Jim Donelon wants a special ordinance to get more insurance companies to come to Louisiana since many companies out of business or out of state.
The meeting will approve a $45-million stimulus for insurance companies. This motivational program raised many questions from politicians today.
“This enforcement program is an immediate aid and solution to existing problems,” said Donelon.
Donelon said, “A lot of people tell me they can’t get anyone, any company, to fix it.”
He pointed out, “Companies that write the rules must stay in that insurance for five years, be monitored every quarter and then get 20 percent of the $5-million subsidy. ”
But the lawmakers have many concerns and questions such as the need for more incentives for insurance companies and whether this will really help solve the problem of hurricane damage year after year. Lawmakers also want to make sure insurance companies can afford to pay claims. But Donelon argued that now is the time.
“People are going to lose their homes if we don’t have a special event,” Donelon said.
Lawmakers also criticized forcing people to get policies through the Louisiana Citizens Property Insurance Corporation that underestimate claims and high premiums that cause many people to pay more. residence than their actual mortgage.
The Property Insurance Company of America says they like the incentive program.
“Our interest in Louisiana is to come here and book homes that are south of I-10, priority mitigation, improvements since Hurricane Katrina, as well as hurricanes in the last two years,” he said. said Ned Dolese, CEO of Property Insurance Companies of America.
Although the issue is multi-faceted, the Insurance Commissioner and lawmakers say better insurance when hurricanes hit should be a priority.
Lawmakers are pushing for the special ceremony to be completed by early February before Mardi Gras. The Insurance Commissioner is pushing for a special session before the regular session in April.
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