(New Orleans-LA) Senator James David Cain, Chairman of the Senate Insurance Committee held a press conference along with Representative Emile “Peppi” Bruneau (R-New Orleans) and Senator Edwin Murray (D-New Orleans) today announcing the need for a special legislative session to overhaul insurance regulation in Louisiana and solve our insurance crisis.

State Treasurer John Kennedy has determined there will be anywhere from a 400 to 600 million dollar surplus in the state budget. Senator Cain believes this surplus should be infused into Citizens retroactively to help rebuild homes and the economy throughout Louisiana. Senator Cain said “If Treasurer Kennedy is right about a surplus in the budget; the money should used to help pay assessments and put money back in the hands of Louisiana families.”

Senator Murray pledged his support to Cain’s plan by stating “I support Senator Cain’s effort to reform the Louisiana Citizens Corporation and any additional money found in the budget should be devoted to a shortfall in Citizens program.”

Representative Bruneau said , “Citizen’s Insurance belongs to all us. No matter which insurance company you have, families and small businesses are being forced to pay these assessments. I agree with Senator Cain that if and when a special session is called, these assessments should be paid retroactively.”

Restructure Louisiana Citizens Property Insurance Corp
The state agency created to become the insurer of last resort, has become the insurer of only resort for too many in Louisiana. Citizens was based on a flawed Florida plan, and was caught unprepared.

Attempts to reform Citizens Insurance were passed out of the Senate, only to be met by opposition from Citizens Insurance and the Department of Insurance and subsequently failed in the House. Three major changes needed to be made to begin the process of overhauling Citizens Insurance: authorize $100 million to go towards assessments, place $100 million into reserves for future catastrophes, and reorganize and streamline Citizens for its increased workload.

These steps would increase efficiency, act as a down payment on preparation for the next disaster, and reduce the burden of assessments on the Louisiana economy.

NOTE: A photo of the event is at http://www.jamesdavidcain.com/photo_Shoot/cain823.jpg

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