Declarations
Are the elves at work?
“Just because it’s close to Christmas doesn’t mean the governor has to be Santa Claus. That’s not what the special session should be.”
— Louisiana State Rep. Steve Scalise, R-Metairie, a member of the House Appropriations Committee, which will debate spending bills in the special legislative session Dec. 8 — 17. Gov. Kathleen Babineaux Blanco has proposed an ambitious agenda that includes dealing with the $1 billion in debt incurred by Citizens Property Insurance Corp., tax cuts and wage hikes.
Warning: ‘misguided legislation’ possible
“Many of the insurance issues require thorough study and discussion that is difficult to achieve within the allotted time frame. Without clear spending priorities, the state may not maximize the opportunity to mitigate future losses or stimulate economic recovery.”
— Greg LaCost, assistant vice president and regional manager for the Property Casualty Insurers Association of America. PCI released a statement urging Louisiana lawmakers to exercise caution in when it comes to making decisions regarding solutions to insurance issues or how to spend the state’s surplus. PCI warned that “misguided legislation” with the potential for long-term consequences could advance during the 10-day session.
Looking good, except along the coast
“Texas independent agencies report having access to more insurance companies this year. Coupled with a largely catastrophe-free year in 2006, this has created a competitive market that is good for consumers.”
–Robert Hempkins, president of the Independent Insurance Agents of Texas, commenting upon the association’s survey that revealed competition is alive and well in personal lines insurance markets throughout the state, with the exception of coastal areas. The IIAT survey found that agencies along the coast, including Harris County, reported greater difficulty placing business with standard insurance companies in 2006 compared to last year. Nearly two-thirds report greater difficulty while in all other areas of the state, two-thirds of agencies report having an easier time placing such business.
‘Greatly distressed’
“The independent agent and broker community is greatly distressed by this development.”
–Independent Insurance Agents & Brokers of America CEO Robert A. Rusbuldt, commenting on New York Attorney General Eliot Spitzer’s notification to ACE, AIG, St. Paul Travelers and Zurich, that under agreements reached with his office earlier this year, they may no longer pay “contingent commissions” to agents and brokers who sell automobile, homeowners and certain other insurance products. Rusbuldt said carriers are now unable to use what otherwise is a perfectly legal way to compensate their sales forces. He noted that contingent compensation is practiced in virtually all industries across America.