Los Angeles lawmakers are among thousands losing their insurance coverage

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Crews part of the federal Blue Roof program install a tarp on a roof damaged by Hurricane Ida in New Orleans, Louisiana.(Source: WVUE)

NEW ORLEANS (WVUE) – Some Louisiana lawmakers are among thousands of people who have lost their home insurance even as we approach hurricane season.

Rep. Kyle Green is a Democrat representing part of Jefferson Parish.

“Me personally, I’ll be one of those people where the insurance company, my landlord’s insurance company went bankrupt and we’re now, it’s now in receivership,” Green said.

Like many homeowners, he is forced to seek coverage elsewhere.

“So I got a notice in the mail saying you can either go to LA Citizens, which must be, their premiums are higher because it’s statutory, or you can go to another, I guess , a smaller insurance company, which I have no knowledge of as whether this company is reputable or not, it causes you a bit of angst as we approach what appears to be a very active hurricane season. said Green.

Senator Kirk Talbot, a Republican representing Jefferson Parish, also lost his cover.

“My insurance company dropped me and I was picked up by another,” Talbot said.

Thirty thousand policyholders will have their coverage canceled on June 22 and others on June 30, according to the Louisiana Department of Insurance.

“Insurance companies took a really bad hit, we had five companies that went into receivership already, which means they failed. We had 10 companies that went out,” says Talbot.

Veteran insurance agents like Ross Fayard are crying out for help for their clients. He says his agency has 798 clients losing coverage this month.

“It needs to be fixed and the only one who can fix it is Jim Donelon, he needs to fix it or he needs to quit,” Fayard said. “I’m not mad at Mr. Donelon because I wouldn’t want his position for anything right now, but come on man, let’s fix this.”

FOX 8 requested interviews with Commissioner Donelon on Tuesday and Wednesday, but his spokesperson said a press conference would be held Thursday in Baton Rouge.

Talbot was asked if Donelon could provide relief to some of the ailing policyholders. He said Donelon couldn’t wave a magic wand and force insurers to stay in Louisiana.

“No, and what the insurance commissioner did and a good thing in the aftermath of Katrina is he created a climate here that attracted a lot of home insurance companies. It’s one of the reasons we have the businesses we have.

Green said: “I think the insurance commissioner has the tools he has already been given by lawmakers to hold insurance companies accountable. I think we are now asking him to use these tools.

During the regular legislative session that ended June 6, lawmakers passed insurance reform measures. Talbot helped lead this.

“We passed bills where insurance companies should simplify the claims process when you have damage, how to get paid, you know, we’ve done a lot of things like that. We have increased penalties for insurance companies that do what they are supposed to do. Which I’m proud of,” Talbot said.

But clearly, he and other lawmakers wanted to do more.

“Overall, you know, I don’t think we’ve done enough from my perspective to make sure consumers are protected,” Green said.

Talbot believes the state’s insurer of last resort can support those who lose coverage with private insurers.

“The good news is that Citizens is in great shape. We had around 180,000 fonts in Citizens following Katrina, now we’ve dropped to around 35,000, so we have room to take on more. Citizens is in excellent financial shape. LIGA, the Louisiana Insurance Guaranty Association, they’re in great shape, so it’s going to be a tough couple of years,” Talbot said.

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