South La. Lawmakers Seek Rate Cut

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South Louisiana lawmakers are pushing to give some homeowners a 10 percent break on their property insurance, though the legislation faces firm opposition from state Insurance Commissioner Jim Donelon.

House Bill 213 could erase the 10 percent markup paid by homeowners insured by the state’s “insurer of last resort,” Louisiana Citizens Property Insurance Corp., in 10 southern parishes that are intersected by, or entirely south of, Interstates 10 and 12.

The price break would only kick in when it’s determined that the Citizens is writing more than 50 percent of new policies in a parish.

The bill will have to overcome a fight from Donelon, who unsuccessfully resisted a similar push last year. He fought legislation — now state law — that exempted homeowners in 11 southern parishes from the 10 percent hike.

The measure puts Donelon in a tough political spot: He opposes it because it conflicts with his long-term plan to fix the region’s insurance problems, but doing so means he opposes a price break for voters.

The 11 parishes exempted under last year’s legislation, are: Calcasieu, Cameron, Iberia, Jefferson, Lafourche, Orleans, Plaquemines, St. Bernard, St. Tammany, Terrebonne and Vermilion. Under the right market conditions, the new legislation could also exempt Acadia, East Baton Rouge, Iberville, Jefferson Davis, Lafayette, Livingston, St. Martin, St. Mary, Tangipahoa and West Baton Rouge parishes.

The measure is co-sponsored by Sen. Reggie Dupre, D-Houma; Rep. Sam Jones, D-Franklin; Rep. Joe Harrison, R-Labadieville; and Sen. Butch Gautreaux, D-Morgan City.