Private insurance companies to begin participating in Louisiana’s Citizens Property Insurance Corp

Private insurers are getting ready to start taking over Louisiana’s Citizens Property Insurance Corp. The state-run insurance agency has fared well in the past four years, experiencing periods of growth throughout 2007 and 2008. The state’s Department of Insurance is looking to “depopulate” the program, however, in an attempt to lower insurance rates for the majority of policyholders. To this end, regulators are inviting private insurance companies to begin selling policies through Citizens. Regulators believe that these policies will bring higher quality service to consumers. Part of the success behind…

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Coalition for Competitive Insurance Rates oppose new laws for foreign reinsurance companies

Two laws currently before Congress have found opposition from the Coalition for Competitive Insurance Rates, a group of businesses and consumers that rely on low rates stemming from competition in the national insurance market. The legislations in question are H.R. 3157 and S.B. 1693. Both laws impose greater taxes on foreign insurance and reinsurance companies that wish to do business within U.S. borders. The Coalition fears that this will dissuade foreign companies from entering the market, thereby reducing competition and raising insurance prices. Currently, the majority of the reinsurance needed…

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