12 thoughts on “The price of electing a clown as insurance commish: Louisiana Citizens to raise rates 58%”

  1. Citizens plan was a bad idea from the start and should never have been instituted on a permanent basis . By using State Farm one of the largest carriers as the underwriter the program eliminates competition in the industry, now most all insurance companies will not write wind and hail while the other carriers are forcing homeowners to obtain riders through the program. What makes no sense is most insurance carriers will blame flooding as the major cause to damages post hurricane so lowering the risk to carriers by having a citizens plan has not lowered the costs and eliminating the program now will be used as an excuse to raise rates even higher regardless of the huge profits the industry is already making. Same thing was done by Mr. Brown in the auto insurance industry years ago eliminating the homegrown locally owned companies that offset the larger companies lobbyists efforts to raise rates.

  2. If this doesn’t result in an election recall by some consumer/good government group then Louisiana is really Loossiana.

    Is it little wonder why businesses and people don’t want to return to La. post Katrina. This is political blackmail of all citizens ( first in auto rates and first in home insurance rates) and it should be investigated and Donelon’s ass kicked out.

    And where is THE GREAT INDIAN GOVERNOR ? Out riding his yellow painted elephant from one Republic rally fund raising, stinkin’ curry dinner to another.

    http://www.youtube.com/watch?v=rVOvpJso3ZI

    Jingle Jangle Jindal give it up you Alfred E. Newman look-alike ” What Me Worry?” asshole Mouth of the South.

  3. I can only echo Ignatius’s comment above: ” I TOLD YOU SO…”

    Please Louisiana SHEEPLE, wake up, Jimbo the Clown DONELON is OWNED by STATE(less) Farm..he doesn’t take a leak without first calling and getting their permission to do so…

  4. Follow the money. Citizens doesn’t have the reserves to cover the exposure so it has no choice but to buy outrageously expensive reinsurance from the Bermuda re cartel. Need the press to demand the details of the reinsurance contracts. Why the increase? New models? More Citizens policies concentrated in highest risk areas? Or just the absence of antitrust authority to dig into all the conflicts of interest?

  5. Becky Mowbray with a related article with the LA and MA commissioners saying it’s complicated and they can’t do anything about it.
    http://mobile.nola.com/advnola/pm_29230/contentdetail.htm?contentguid=iFU3M0ro

    The first step is transparency. When I was tracking the increases in rates and exposure after Katrina, I found LA Citizens to be the most secretive. They conceal things that regulated insurers are required to report, including who covers their reinsurance layers and how much they pay in reinsurance premiums.

  6. Hey Brian,
    There was once talk of a Catastrophic Hurricane insurance plan like the national FEMA flood policies which went no where and probably a good thing since congress uses the short term funding of flood insurance as a bargaining tool within the parties rather than have a long term funding solution that would save money. Certainly the coastal states banding together in the private market to offset risk is a viable solution but once again the insurance industry lobbyist will fight against that. I agree with you on more transparency is needed in all aspects, lets start by exposing the lobbyist money and money paid to political campaigns made available by the industry nation wide on a yearly biases that could go towards stabilization of rates in higher risk areas.

  7. Volume 6 Issue 12 May 30, 2012

    NFIP now extended 60 days until July 30, 2012

    Last night, the House took action to pass a 60 day extension to the NFIP approved by the Senate to forestall any lapse of federal flood insurance until at least July 30, 2012. This action will open a 60 day window of time for further discussion about NFIP reform and, hopefully, a 5 year extension. The measure is expected to be signed by President Obama.

    “Federal flood insurance will be a very important issue to property owners across the country since by end of July we will be heading into the most active part of the hurricane season,” noted Neal Conolly, President of Fidelity National Indemnity Insurance Company. “We hope that Congress can put this issue to rest and reauthorize the NFIP for a full term. Homeowners, as do all participants in a revitalized real estate marketplace, need the flood insurance backstop that the NFIP provides.”

    Congress has been extending the NFIP through a series of short term extensions for two years while considering legislation to enact meaningful reform, a longer term extension and resolve the long standing debt suffered by the program.

    Currently, the House had passed an NFIP reform legislation that offered a 5 year extension but the Senate has not been able to agree to any specific reforms or a longer term extension. After today’s House affirmation of the Senate bill passed last week, we continue with another short term extension until July 30, 2012.

    Fidelity National Indemnity Insurance Company is acutely aware of the concerns of the agents and insureds impacted by the funding extension or potential lapse of the NFIP and will be taking all pertinent steps to prepare for any potential lapse of the NFIP and keeping agents informed.

    For more information, please contact Fidelity Flood Marketing at 866-373-5663, or contact your regional sales manager.

  8. Brian: Rebecca Mowbray’s article was so on spot-i.e. first in the nation in insurance rates makes us the last desired destination to live and attract businesses and jobs.

    I would like to know if “Donkey Ass” Donelon ever took geography in grammar school after he stated that ‘Texas, La. and Fla. are the most riskiest states for hurricanes’. WTF happened in and to Miss. and Ala.?

    If he’s gonna make asshole statements like that then people need to start by challenging that untruth we know is BS and then challenge him on every piece of BS that comes out of his lipstick laden,lying face.

    Personally, I believe “Donkey” Donelon belongs with Chaney of Miss.in the same cell in a federal institution for the criminally insane so they can share their BS insurance stories 24/7 and determine who is THE BEST at lying to the public.

  9. I blogged about the inefficiency of state by state high risk pools last year in response to a Wall Street Journal article:
    http://efahip.com/2011/10/05/explaining-to-the-wall-street-journal-how-the-insurance-industry-manipulates-wind-pools/
    The whole issue is about having the capital reserves to pay for a major hurricane hitting a population center. When companies dropped so many policies after Katrina, the state plans doubled or tripled or quadrupled their exposure without any opportunity to increase their reserves. Since then, all the premium increases have gone to reinsurers and their investors instead of building up reserves in the plans.

  10. Hey Brian ,
    Thank you for what you are doing to expose this, your posts were great. Obviously the Wall Street Journal is discriminatorily representing the insurance industry interests. What concerns me the most in his statements is the lack of empathy towards peoples lives and lively hoods of a unique way of life to generations of families living in coastal areas that is being threatened by the insurance industry greed. What the investigative journalist seems all to willing to over look is the vast amounts of natural resources that coastal areas provide to the nation in food , energy and vital shipping ports that transcends his statements to justify higher rates of beach front condos or playground for the rich when in fact those higher rates make it more expensive to live in the heartland of America too. Brian ever thought about running for insurance commissioner in Louisiana, you got my vote.

  11. lockem- agreed both “Donkey’s A** Donelon” & “Crazy Chaney” ( Miss Insur. Commish) both belong in a wing for the criminally insane of a federal prison. I just thought “Jimbo the Clown” Donelon was nuts after I tried to reason with him in Baton Rouge; but, Chaney gives new meaning to the term mentally insane with his antics in Mississippi..

    What’s even more disheartening is that the Louisiana sheeple put “Donkey Donelon” back in that job of Insurance Commish on a two to one basis in the last election….which is an indication that “Donkey Donelon” ain’t the only one in Louisiana that is mentally insane…

Leave a Reply

Your email address will not be published. Required fields are marked *