State Auditor Disputes 2006 Rate Cuts for Louisiana Citizens

A state audit says the Louisiana Department of Insurance may have broken the law in 2006 by cutting rates for the state’s insurer of last resort to levels competitive with private insurance companies.

Legislative Auditor Steve Theriot also says the insurance department failed to comply with state audit laws by refusing to provide needed information to auditors.

Insurance Commissioner Jim Donelon says his office followed all applicable laws.

The audit released Nov. 17 was the second in two weeks to criticize Louisiana Citizens Property Insurance Corp.

State law requires its rates to be at least 10 percent above the highest rate in a given area.
Information from: The Times-Picayune, www.timespicayune.com