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.
What is PIA?
   •  Join Now
   •  Contact Us
PIA of Louisiana
   •  Board
   •  Committees
   •  Staff
PIA National
Local Chapters
   •  Conference
1752 Club





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 www.ldi.la.gov/act427.

You can access Advisory Letter 2014-05 by clicking the following link: http://www.ldi.la.gov/docs/CommissionersOffice/legal/Advisory%20Letters/AL2014-05_Cur_ActNo427OfThe2014Reg.pdf.

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

Upcoming PIA Events
10/30/2014 -- Saints Tailgate Party & Linked-In Class
(Harrah's Hotel & Mannings Restaurant, New Orleans, LA)

11/04/2014 -- CPIA-3 Sustain Success
(Opelousas, LA)

11/05/2014 -- New Orleans Chapter Meeting

11/06/2014 -- YIPs 4th Annual Glow Ball Tournament

11/06/2014 -- YIPs 4th Annual Glow Ball Tournament Sponsorship Opportunities

11/11/2014 -- CPIA-3 Sustain Success
(Kenner, LA)

11/12/2014 -- Baton Rouge Chapter Meeting

11/18/2014 -- Acadiana Chapter Meeting

12/02/2014 -- Northeast Chapter Christmas Party and Installation

12/02/2014 -- North Shore Chapter Christmas Party & Installation

Virtual Exhibit Hall

Check out our
Virtual Exhibit Hall

Hurricane Relief Center
Click to enter our
Hurricane Relief Center

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 Pandemic 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 Regulatory 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. Facts 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.

Facts and Perspectives on the Ebola Pandemic (I.I.I. 10/13/14)
Easing Ebola Fears in the Workplace (Employee Benefits News 10/17/14)
Ebola Outbreak: Lockton White Paper (10/15/14)
Aon Activates Ebola Response Task Force (10/20/14)

Thanks to Our 2014 PIA Partners:

Americas Insurance Company

American Strategic Insurance (ASI)

Capital Premium Financing

Markel FirstComp

LCTA Workers' Comp

LUBA Workers' Comp

Prime Rate

Stonetrust Commercial Ins. Co.

VIP Software