[StBernard] Bob Wooley's Comments at the St. Bernard Parish Council Meeting

[Westley Annis]

12-20-5    St. Bernard Parish Council Meeting

 

Bob Wooley -  Commissioner of Insurance

 

Reminded us to remember we're involved in largest natural disaster in
history.  Has led to unprecedented logistical issues.

 

Insurance Department - 1st State Department that was opened after Katrina.

 

Were working on High Risk Pool changes prior to Katrina. 

 

"We're not seeing "mass demolitions" necessary". - Wooley

 


The Insurance Marketplace


 

1st > Voluntary Admitted Marketplace (SF,Allstate)

2nd > Surplus Lines Marketplace (not covered by Insurance Guarantee
Association) (not regulated as much by Dept of Ins, so they can be more
flexible, normally used for large plants & commercial type properties

3rd > High Risk Pool  (where u buy ins when 1 & 2 will not write you)
Intended to be insurer of last resort. Therefore, more expense b/cz its
writing risk that no one else wants to write.  Not set up with Staff like
large insurance. Co's.  Citizens Fair Plan has only 38 employees. Not
intended to be a large operation.

 

"After event of this size, u'll see ins co's reluctant to write in affected
areas." - Wooley

 

The State of Louisiana is heading to an insurance pool model similar to the
Florida model post Hurricane Andrew.

 

Any agent will 1st try to place u in admitted, then surplus, then Citizens.

 

Councilman Difatta > why are those companies that are not taking a major
loss, because it's falling under the NFIP program - why are large companies
reluctant to write? It's not a major loss like Florida -Hurricane Andrew.
Wooley refuted Diffatta's question stating that insurance companies feel
that the estimated  20 Billion in wind damage is pretty significant to them.
- Wooley.

 

Wooley stated, "I can't force ins co's to write insurance in the state. They
are private enterprises. Wooley has visited w/ 30-60 ins co's every month to
come write in LA. Now after Katrina, ins co's would laugh at Wooley for
asking them to come back.   Especially, the Fraud environment that we exist
in Post Katrina.

 

 

Every ins company, must pay assessment to absorb their portion of the 1.4
billion Citizens Fair Plan loss.  Wooley is requiring  co's to give him plan
that they are committed to writing in state or else he wont  allow to get
their assessment money back.

 

Co's that have had  a policyholder for a long time, they wont want to cancel
their coverage.  

 

Citizens Fair Plan  --- possible  -- Builders Risk Policy - insure the risk
while property is being renovated.  Less expensive b/cuz u wont be insuring
to full value. 

 

1st year will go into Citizens Plan.  Legally builders risk really doesn't
fit into "renovation" but will bend the rules to offer s/thing to the
people. Will price this product & develop a loss history on this product.
Admitted co's wont do it at first. Surplus lines will because they are more
flexible.

 

Plan is to go 1st to Citizens, then look to surplus at renewal then perhaps
later, u will be eligible for Admitted.

 

When losses exceed premium/revenue generated then Admitted Companies have to
share the loss  In State Farm's case SF has to pay 310 million since SF has
1/3 of the marketshare.

 

 

Jonathan Andry - local attorney - Fraud - bought ACV policies, adjustors
telling them instead of paying acv adjustors have an arbitrary amount they
are using to depreciate the contents.  Ping Pong table depreciated rather
than using ACV.  If u want it at replacement cost u have to "schedule it"
otherwise it will be depreciated.

 

Wooley issuing EMERGENCY ORDER starting 1/2/6 every policyholder in this
state will have a RIGHT to MEDIATION. Informal process, paid for by the ins.
Co. Will have 800# to call (Administrator) will instruct u what to bring to
Mediation.  Handling disputes, such as Wind vs Flood.  A Certified mediator
for Louisiana Bar Associaton will be present. Will listen to companies
personnel & insured. Can bring your own attorney if u choose to.  Upon
decision, u can accept it or reject it & go to court.   Florida used it and
had an 82% success rate of getting to closure. It's another chance for u to
dispute the claim.

 

"If u think or suspect u have a problem, call my office & we will get u
help"- Wooley

 

800-259-5300 - 6 days a week. 7:30am-6pm  website> www.ldi.state.la.us
<http://www.ldi.state.la.us/> 

 

Councilman Taffaro - appreciates the Emergency Order that Wooley is
implementing.

 

Taffaro expressed concerns that the insurance companies appear to have the
flexibity of wind/flood adjusting to their own advantage.

 

Wooley stated that he's HEARD many Urban Legends & Myths about the Flood
Line.. & he's asked 200 or so people to send in the documentation and the
facts. Have gotten zero documentation & specifics back.  He stated, "I can't
take a company & spank them if  I don't have the facts."

 

Taffaro gave his specific info on his personal claim. Wooley stated, "no
problem just get me the facts. We'll pursue it."

 

A lady from the audience:

 

Got her new Flood Policy in after Hurricane Katrina.

 

Metropolitan upped her Flood $125,000 to $150,000 on her building & Contents
from $50,000 to $75,000 & Metropolitan said she couldn't change it. Told her
she had to keep her coverage.  She has no dwelling or contents left & was
told she had to do it to keep her liability.

 

Wooley suggested she go get Builders Risk from Citizens Fair Plan.

 

Councilman Ricky Melerine - homeowners outside levee protection area - how
do people have evidence that house was there & water came & took it or if
wind hit prior to the water?  All the "evidence" is gone. 

 

Disclaimer > these very informal minutes were recorded by Marvin LeBlanc &
is no way to be interpreted as covering 100% of all material covered.
Minutes are being shared in an effort to pass on ESSENTIAL information that
St. Bernardians need as they put their lives back together. Peace, Hope &
Love to you all during this Christmas Time.

 

Marvin LeBlanc

GndQ at aol.com