PIA of Louisiana's 71st Annual Convention
July 19-22, 2014 • The Grand Hotel, Point Clear, AL
Click Here for Convention Pictures
For more pictures and information on upcoming events, please
visit our Facebook page.
PIA Legislative Update: Advisory Letter 2014-05
The purpose of Advisory Letter 2014-05 is to advise all property and casualty
insurers authorized to issue homeowners' insurance policies in Louisiana of
Act No. 427 of the 2014 Regular Session of the Louisiana Legislature. Act 427
enacted R.S. 22:1488 which established certain data reporting requirements that
homeowners' insurers must provide annually to the Louisiana Department of
Insurance (LDI) no later than May 1, 2015.
Advisory Letter 2014-05 provides insurers guidance with respect to the form
and procedure homeowners' insurers shall use to submit the requisite information
to the LDI.
A Sample Data Collection Template with instructions can be accessed via
You can access Advisory Letter 2014-05 by clicking the following link:
La. Health Insurance Costs Could Rise by
20 Percent in 2015
Some of the biggest health insurance companies in the state have filed notices
of increases as high as 20 percent next year, and the state insurance commissioner
is powerless to stop it.
Insurance commissioner Jim Donelon blames changes in state law and increases
mandated by the Affordable Care Act.
Donelon said state insurance experts are now looking over the rate increase
proposals from several companies, including Blue Cross-Blue Shield and Vantage,
but he said unless state law changes, he can't do anything about them. Donelon
said the increases are due to new federal mandates that require policyholders
to buy more coverage and subsidize coverage for those who can't pay.
But the group Families USA which says it is "non-profit, non-partisan and works
to achieve quality health care for Americans," says Louisiana policy holders are
having to cover costs for the uninsured, due to the state's failure to accept
Medicaid money, which would help subsidize health care costs for the poor.
"Ultimately, the hospitals have to increase the costs of everyone insured to
make up for lost payments, and that results in higher premiums," said Families
USA spokesman Ron Pollack,
"For the first time in the history of the country, the Affordable Care Act
imposed a federal premium tax on health insurance premiums," Donelon said.
"That's the first time the government has taxed health insurance premiums.
It's adding to the cost about $50 a month."
State officials no longer have the power to deny rate increases after the
abolition of the insurance rating commission seven years ago.
Donelon said he's tried to get the Legislature to give him the power to
approve or deny increases, but so far, they have not.
Written by: Rob Masson
Lake Charles KPLC-TV
Updated: Oct 10, 2014 6:40 PM CDT
Commissioner Donelon Announces Support for Amendment 5
Re: Mandatory Judicial Retirement Age
Louisiana Insurance Commissioner Jim Donelon is supporting Amendment 5 which
would eliminate the mandatory age-based retirement requirements for state judges.
"Imposing an age limit of 70 amounts to an anachronism that fails to take into
account modern lifespans and lifestyles. More importantly, judgeships are the
only elected position in Louisiana with a mandatory retirement age and experienced
and competent judges are being forced to retire and it's Louisiana citizens who
will pay the price," said Donelon. "I encourage voters to vote for Amendment 5
and retain the right to choose an elected official who they feel has the ability
to best serve them."
Amendment 5 is a legislatively referred constitutional amendment that was introduced
as a result of Act 875 of the 2014 Regular Legislative Session. Voters who want to
eliminate the age-based ban will vote FOR Amendment 5 on the statewide ballot November 4.
Ebola Crisis Spurs New Insurance Products
In the face of the Ebola crisis, new insurance product offerings are being
brought to market. Miller Insurance Services, an independent specialist
insurance broker, and William Gallagher Associates, a U.S. retail insurance
broker, have announced
Disease Business Interruption Insurance,
provided by the Ark Syndicate at Lloyd's. The insurance is designed to cover
loss of income arising directly out of shutdowns of health care facilities,
as well as diminished revenues in the aftermath of a quarantine.
NAS Insurance Services, a California provider of specialty insurance coverages,
in conjunction with Prospect Insurance Brokers Ltd and Ark Specialty Programs
of Lloyd's of London, said it will offer
Business Interruption Ebola Coverage against
business losses suffered because of a government-ordered closure stemming from
the Ebola virus.
"The individual treatment costs of Ebola will normally be met by the medical
and/or travel insurance of the individual or his/her company which is a market
well served," says Prospect Director Jamie Webb, "but what is new is the threat
that a business can be shut down by regulatory authorities due to the presence
of communicable disease on the premises."
Facts on Ebola's Impact on Insurers
As the Ebola epidemic in Africa begins to cause concern among U.S. residents,
the Insurance Information Institute (I.I.I.) posted a comprehensive fact sheet
on Ebola and its effects on U.S. insurers on its website.
and Perspectives on the Ebola Pandemic
by Dr. Steven Weisbart, the I.I.I.'s chief economist,
looks at Ebola and its potential effects on U.S. insurers.
The report notes that the Centers for Disease Control and Prevention (CDC) does
not expect the Ebola virus to infect people other than a small number of health-care
workers and others who have had direct contact with the bodily fluids of an infected
person. It states that even if the virus were to spread to infect thousands of adults
in the United States, the insurance industry could financially withstand the crisis.
and Perspectives on the Ebola Pandemic (I.I.I. 10/13/14)
Ebola Fears in the Workplace (Employee Benefits News 10/17/14)
Outbreak: Lockton White Paper (10/15/14)
Activates Ebola Response Task Force (10/20/14)
Thanks to Our 2014 PIA Partners:
Americas Insurance Company
American Strategic Insurance (ASI)
Capital Premium Financing
LCTA Workers' Comp
LUBA Workers' Comp
Stonetrust Commercial Ins. Co.