State lawmakers go into special session Monday to put together a plan to bring new private property insurance companies to Louisiana, but not everyone is on board with the current plan. The proposal is to use #$45-million in surplus cash to make an incentive fund for new incoming insurers. Thibodaux Republican Representative Bryan Fontenot says he’s troubled by that being the sole item on the session agenda…:

“There should have been all hands on deck. All possible solutions being debated. But instead, all we have chosen to do is go in and ‘Yes or no? Are you willing to give Jim Donelon 45-million dollars’”

Fontenot says there’s no talk of possible tort reform which could help lower insurance costs for property owners, nor discussion of possibly reforming state law as it applies to insurance adjusters. He says there may be better uses for that $45-million…:

“I think we should consider incentivizing those companies that are already working here, and have been committed to the citizens of Louisiana BEFORE we begin to incentivize companies that have never issued one policy in our state.”

Insurance Commissioner Jim Donelon says a similar incentive fund put in place after Katrina & Rita succeeded in bringing 5 substantial new insurers to Louisiana to help de-populate Louisiana Citizens (which is considerable more costly than private market rates). Fontenot says no one asks the Commissioner for any deeper answers on those newcomers…:

“Of those five companies that were here, how many policies did they issue? Are they still here? Have any of them have gone bankrupt? And how many complaints did his office handle on those companies?”

Fontenot says discussion of reforming Louisiana Citizens, that state’s last-resort insurer, so it is less costly for consumers…is also NOT on the table.