The Louisiana Citizens Property Insurance

Corporation is a Billion Dollar Fiasco

Background Documents: 
Find out who gave Donelon and Wooley $250,000 from Florida_(pdf file)
Karlinky's contract to design Citizens of Louisiana for the Department of Insurance (pdf file)
Karlinsky and Citizens Under Scrutiny in Florida (pdf file)
More Trouble for Citizens (pdf file)

(Baton Rouge – LA) Robert Wooley and his Chief Deputy, Jim Donelon, hired top-tier Florida insurance lobbyists to create Louisiana’s Citizens Insurance. In April of 2003 Fred Karlinsky’s firm was awarded a contract for $49,900 to “draft legislation”, “provide advice for finance mechanisms” and to “provide advice for reinsurance options” for Louisiana Citizens.

In December of 2002 Wooley/Donelon started raising money from Florida. In less than four years they’ve raised over $250,000 from Florida. Most of the money is grouped around companies that are related to one another and in many cases, comes from the same address.

The two largest service providers for Louisiana’s Citizens are from Florida. The procedure to award these multi-million dollar contracts has been mired in controversy since they were awarded and was even challenged in court.

James David Cain said, “The creation and management of Louisiana’s Citizens has been a disaster. Our state will be paying for this mistake for 15-20 years. And if we’re hit by another storm it will get even worse.”

 According to James David Cain, “These Florida donors that designed Citizens so they could get multi-million dollar contracts need to know that as Insurance Commissioner, I won’t allow a ‘Second Louisiana Purchase’. Our Insurance Department should not put our state up for sale.”

Senator James David Cain was one of only two senators to vote against the creation of Citizens. 

The Bottom Line:

Jim Donelon has raised $58,000 from Florida in five months

Robert Wooley and Jim Donelon raised $265,650 from Florida in four years

Robert Wooley and Jim Donelon raised $81,750 from one address in Florida

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