How’d Citizens set rates? Who’s responsible? Wednesday, May 23 2007
Uncategorized 8:00 am
On Tuesday the latest report on the debacle at the state-run Citizens Property Insurance Corp. was made public.
According to testimony by the Lege Auditor Steve Theriot:
[H]is auditors questioned the way Citizens set its rates, therefore could not evaluate if the company would lose money. Baton Rouge Advocate, May 22, 2007.
That begs the question that we need an answer. The rates were approved by the LA Insurance Rating Commission (LIRC) that is appointed by Governor Blanco. If there were no financial records to review, exactly on what did the LIRC base its decision to increase rates?
As a policyholder I want to know if I am being overcharged. As a taxpayer, I want to know if policyholders are being undercharged. All taxpayers whether also a policy owner should want to know because it is us who will have to pay if rates are inadequate.
It’s important to remember that the tax credit/rebate that we get for the surcharge we all have on our property insurance premiums to pay the debt of Citizens incurred following Hurricanes Katrina and Rita is not applicable to any future debt.
Here’s a list of the members of the LIRC:
Berry, Christine (Dr.) Economic Dept., 700 University Ave. Monroe, LA 71209(318) 342-1157
Brown, Chad M P. O. Box 94214, Baton Rouge, LA 70804-9214(225) 342-5423
Busada, Barry 8710 Glenmora Drive, Shreveport, LA 71106(318) 603-0349
Godchaux, Joe (Jr.) Post Office Box 40, Opelousas, LA 70570(337) 948-3797
Ragas, Jabari 3052 Behrman Highway, New Orleans, LA 70114(504) 799-2223
Ruiz, Steven M16 Lorio Lane, Mandeville, LA 70448(985) 626-0904
This has to be the understatement of day:
Theriot said … that the problem was more a lack of adequate oversight. Baton Rouge Advocate, May 22, 2007.
Here is a list of those directly responsible for the lack of adequate oversight:
CITIZENS CHAIRMAN:
Chad Brown P. O. Box 94214, Baton Rouge, LA 70804 (225)219-0609
Note: Mr. Brown is a member of both the Citizens Board and the LIRC.
CITIZENS BOARD MEMBERS:
Carter, Karen R. (Rep) LA House of Rep; P.O. Box 44486, Baton Rouge, LA 70806 (504) 568-8346
Domingue, Michael W 619 Second Street, Franklin, LA 70538(337) 828-6326
Ely, Mike 1718 Overcheck Lane, Brentwood, TN 37027(615) 885-7951
Henry, Peter, III 4221 Downing Drive, Baton Rouge, LA 70809(225) 687-68978/23/2005
Kostelka, Robert “Bob” P. O. Box 2122, Monroe, LA 71207(800)508-5572
Lapeze, Joelle 304 Park Ridge Drive, River Ridge, LA 70123(504) 461-4420
Mallett, Chester Lee Post Office Box 16195, Lake Charles, LA 70616(337) 582-2025
Metrailer, Ann P. O. Box 95005, Baton Rouge, LA 70895 (225) 922-6200
Miletti, John 35 Bonny View Road, West Hartford, CT 06107(860) 277-0459
Napper, James H., II P. O. Box 44154, Baton Rouge, LA 70804(225)342-0029
Newson, Ronald E 1484 Woodmere, Mandeville, LA 70471(504) 361-4882
Newton, J. William “Bill” P. O. Box 94214, Baton Rouge, LA 70804-9214(225)342-542
C.B.