[StBernard] #11

[Westley Annis]

But, John, how are you going to control what the premium is going to be?
No one can tell them what to charge for coverage, just look at the new
premiums for everyone who still has homeowners.  Are you going to try to
regulate their profit margin?  Competition in a free market society is what
usually keeps prices down, but if you expect government to regulate
insurance industry premiums, then what is the industry's justification for
placing themselves at maximum exposure for minimum profits?  As a
businessman, would you knowingly accept that risk?  What about as a
stockholder in that company?  Would you keep that CEO around for long?

It's a great idea to get insurance written in Southeast Louisiana, but how
do we sell that idea to the companies.  Some are pulling up roots and
heading for the hills now.  I am just wondering how we get them interested
enough to come back.  I guess the same goes for the population.

JIM


-----Original Message-----
Wendy,

I said months ago that Louisiana should pass a simple law that states if an
insurance company wants to come to Louisiana to do business (or if it's
already here) it must make available every type of insurance the company has
to offer, based on what they sell/offer in any of the other 49 states.
So,
only if they auto in Florida (not life, homeowners) but they sell life and
homeowners in Arizona, then they must sell auto, life and homeowners here in
Louisiana.  Also, no more regionalizing the state.  In other words, you must
sell what you have to offer in ALL of Louisiana.  This would prevent
companies like State Farm from doing what they did a few years ago when they
told their agents they could no longer write homeowner policies in southeast
Louisiana but could continue to do it for north Louisiana.

Any violation of this proposed law and the company immediately has their
license revoked to business in the state.  Also, some teeth has to be
included in such legislation where the insurance company has no right to
file in court to appeal the decision by the Commissioner of Insurance
office.  The COI must be given full arbitration powers to decide whether or
not an insurance company is violation of the proposed law.

When I first mentioned this idea months ago I said something about my
conversation with my State Farm agent about my idea.  His reaction was "if
Louisiana ever passes such a law then we (the insurance carriers) will all
pack up and go home (leave the state)."  My reply to him was "who the hell
are you trying to bullshi!!!"  I told him he must think I'm some kind of
idiot if he thought I believed insurance companies (like State Farm,
Allstate) were going to give up making millions of dollars in this state
just because they may have to provide additional types of coverage or be
prevented from removing some.  I told him people in this state aren't that
stupid to believe non-sense like that.  This "pick and choose" what we want
to sell attitude of insurance carriers has to come to an end

I don't understand why the legislature doesn't have the guts to introduce
such legislation.  Believe me, if I ever get in the legislature, I will
author such a bill.

John Scurich