Donelon backs insurance reform legislation, critics say property owners will suffer

NEW ORLEANS (WVUE) – Louisiana Insurance policies Commissioner Jim Donelon on Tuesday (April 4) unveiled a package of proposed new regulations he would like the legislature to approve during the approaching legislative session.

“We are presently in the midst of an coverage crisis,” Donelon mentioned.

He believes passing new regulations will assistance attract a lot more insurers to Louisiana’s home insurance coverage marketplace.

“We have to have insurance policy providers to come back again to Louisiana and this is the best way to get it finished,” Donelon claimed. “While we are not copying what Florida did legislatively, we are having the guide in an exertion to introduce numerous authorized and statements approach reforms that should reinforce our market place for the lengthy expression.”

1 of the expenses provides insurers a lot more power, in conditions of dealing with policyholders who make statements.

“Insurers would be authorized to have to have a sworn proof of loss statement from the policyholder, to set up such proof of reduction,” he said. “The bill also provides a two-calendar year statute of limitation for policyholders to look for penalties and attorneys’ expenses for untimely payment of claims.”

An additional invoice would effect policyholders who want to assign their positive aspects to a contractor.

“That would prohibit home coverage policyholders from assigning their positive aspects to 3rd functions like roofing contractors devoid of their (insurance plan) company’s acceptance,” Donelon stated. “Assignment of added benefits has been made use of by lousy actors to commit insurance policies fraud.”

Donelon also proposes modifications to the appraisal process.

“Our invoice outlines the qualifications and responsibilities for appraisers and umpires, some thing desired as very well, and prohibits a person-sided communication amongst the umpire and any one bash, with no offering the other bash an chance to take part,” he stated. “And other reforms as properly.”

Yet another bill would benefit Louisiana Citizens, the state’s insurance company of previous resort, by stopping it from remaining subjected to lousy-religion fines.

“If Citizens is requested to pay back poor-religion penalties in extra of what it could pay for, it would just accessibility all policyholders in the state,” Donelon said. “For these good reasons, we are proposing legislation that would place Citizens in line with the Louisiana Insurance Guaranty Affiliation and immunize it from undesirable-religion penalties.”

Ben Riggs, executive director of the nonprofit Authentic Reform Louisiana, suggests the proposed new legislation will undermine residence proprietors.

“Louisiana families, citizens, modest organizations, they’re all however struggling to recover from 3, 4 horrific storms,” Riggs stated. “We do not require to be enjoyable steps of accountability. We really do not need to have to be earning it much easier for insurance coverage corporations to cheat storm victims.”

Riggs said he requires difficulty with Donelon indicating the proposed reforms are meant to imitate what Florida is doing.

“We do not require to be copying what Florida’s carrying out,” Riggs reported. “We need to have to be executing what we can to address our insurance policy disaster. We do not will need laws which is prepared by the insurance plan marketplace which is heading to hurt shoppers.”

Donelon suggests he will combat any try by insurers to get rid of the rule that claims if a policyholder has been with an insurance company for 3 a long time they are not able to be dropped at will by insurers.

“I will be lively in whichever endeavours to h2o down or repeal the three-calendar year rule that I really feel is so crucial,” Donelon claimed.

And Donelon reported he wants to keep insurers from focusing on policyholders who want to use community adjusters.

“This invoice will disallow insurers from including these kinds of clauses, prohibiting the use of community adjusters in their procedures,” he stated.

The legislative session starts April 10 at the condition capitol developing in Baton Rouge.

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