Louisiana State Auditor: Insurance Department Owes $692K in Dispute

August 26, 2009

The Louisiana Department of Insurance owes $692,000 for legal fees and other costs in a dispute with the Office of the Legislative Auditor over access to internal documents.

Insurance Commissioner Jim Donelon sued the auditor’s office in 2007 in an attempt to block access to documents and e-mails that investigators said they wanted to complete an audit of Donelon’s agency. Donelon lost that suit last month and has since allowed Legislative Auditor Steve Theriot access to the department’s files.

Theriot said that he’s sending Donelon a bill for $692,000. He said that’s the bill for legal fees and other costs created by the dispute.