Louisiana Citizens- Does anyone understand this AIA recommendation? Would you work claims as an independent adjuster there?

AIA  (American Insurance Association ) who represents approximately 300 insurance companies says proposals to abolish Louisiana Citizens  are misguided in this March 18, 2010 article:

http://www.insuranceheadlines.com/Homeowners/6563.html

AIA’s main argument was the need for available insurance in coastal communities. I find this argument interesting in light of the 100 million incentive Louisiana offered as incentive to induce insurance companies to offer insurance in Louisiana as outlined in many articles. Two of the articles are linked below which explain the details of the incentive:

http://www.insurereinsure.com/BlogHome.aspx?entry=223 and this one posted on the Louisiana Department of Insurance website:

http://www.ldi.state.la.us/InsureIncentiveProgram/index.htm

There were also many post Katrina articles about the carriers taking out policies from Louisiana Citizens such as:

Here is a list of several of the carriers who did take out policies from Louisiana Citizens through the incentive program:

http://www.2theadvocate.com/news/business/17179086.html?showAll=y&c=y

40,000 policies removed by six carriers:

http://www.ldi.la.gov/public_affairs/Press_Releases/2008_Press_Releases/10-8-08%2040,000%20Insurance%20Policies%20to%20be%20removed%20from%20Citizens.htm

This seems strange in view of the many articles posted post hurricane Katrina about problems with Louisiana Citizens after Katrina to include but not limited to some of the following issues:

This article just came out March 23, 2010 regarding a former executive pleading guiltyf to theft charges:

http://ifawebnews.com/2010/03/23/former-louisiana-citizens-executive-pleads-guilty-to-theft-charge/

This February 2010 provides more details about the alleged charges against this executive and the trial then upcoming in March 2010:

http://www.autoquotenow.com/auto-insurance-news/state/former-insurance-exec-to-go-on-trial-in-louisiana-2040.php

What about this class action against Louisiana Citizens per this LA Department of Insurance press release on a 17 million dollar settlement for their failure to settle Katrina claims within the statutory deadlines?

http://www.ldi.state.la.us/public_affairs/Press_Releases/2009_Press_Releases/8-19-09%20Citizens%20suit%20press%20conference.htm

This article from April 2009 outlines information about another class action lawsuit against Louisiana Citizens for failure to pay overhead and profit on claims:

http://blog.nola.com/tpmoney/2009/04/a_state_appeals_court_has.html

How about the news the Louisiana Citizens Board approved 35 million to settle yet a different class action lawsuit that involved 30,000 insureds due to poor claim  handling:

http://channels.isp.netscape.com/pf/story.jsp?floc=FF-APO-1333&idq=/ff/story/0001%2F20081114%2F0813395122.htm&sc=1333

This next article discusses a court dismissing a federal case against Louisiana Citizens for  racketeering, money laundering, wire fraud and mail fraud for their own enrichment :

 http://www.nola.com/business/t-p/index.ssf?/base//money-1/1218864023315000.xml&coll=1

In this article regarding disputes between the LA Insurance Dept and the legislative auditor over release of Insurance Dept emails it says:

http://www.theadvertiser.com/apps/pbcs.dll/article?AID=/20080204/OPINION/802040302/1014

“Jim Donelon, state insurance commissioner, and Steve Theriot, the legislative auditor, are old friends now engaged in a months-old spat over Theriot’s audit of the Department of Insurance. Along with subpoenas, a lawsuit, the occasional snide remark and accusation of wrongdoing, each man has used public hearings to air his grievances about the other. ”

This article from 2007 discussses a major overhaul needed of Louisiana Citizens and citizens outrage over assessements as well as a good explanation about who the members of the Citizens board consists of:

http://blog.nola.com/times-picayune/2007/10/citizens_board_taken_to_task.html

Article discussing Citizens of LA settlement of hundreds of cases of “slabbed” claims from Katrina:

http://fpn.advisen.com/?resource_id=611446981029447447#top

Links to articles about the MAJOR computer glitches and accounting audit nightmares experienced at Louisiana Citizens after Katrina:

http://www.property-casualty.com/News/2007/3/Pages/La–Last-Resort-Insurer-Missing-Audit.aspx

While I don’t know the current status of improvements at Louisiana Citizens, here were a few articles post Katrina showing some good things for adjusters and citizens of Louisiana to include:

Senate Bill No. 183 requiring Lousiana Citizens utilize adjusters and adjusting firms who had been domiciled in the state 5 years or more and was effective in August 2007:

http://legis.state.la.us/billdata/streamdocument.asp?did=436266

Most importantly is that Louisiana did not have adjuster licensing requirements at the time of Katrina’s landfall but did begin requirement adjusters be licensed since then. Resources for adjusters seeking resident, non resident licenses, emergency licenses, and more information on the Claims Adjusters Acts should use this link:

http://www.ldi.state.la.us/Licensing/Producer/index.html

Here is more info on Louisiana adjuster licensing from when they initial announced the licensing requirements:

http://www.ldi.louisiana.gov/documents/licensing/adjuster/AdjusterLicensingInLouisiana.pdf

http://www.ldi.louisiana.gov/documents/licensing/Producer/LAClaimsAdjusterAct.pdf

This article had indicated part of the problems were lack of staffing and resignation of an accounting manager leaving no one to answer the audit questions due to the severe computer glitches and problems with accounting:

http://www.insurancejournal.com/news/southcentral/2007/04/05/78506.htm?ref=feed

Another article says most of the paperwork could not be produced on over 300,000 in expenses:

http://www.insurancejournal.com/news/southcentral/2007/06/25/81076.htm

While I don’t have more time today to spend on this blog, a good place to start your research on current trends and activities, here is a link to the Board of Governors meeting minutes for the past several years you might want to review before considering taking claim assignments from them. http://www.lacitizens.com/MeetingAgenda.aspx

It is not only the adjusting firm you need to do due diligence on before accepting work but also the carrier you will be assigned to to protect yourself from the ever increasing possibility of delays and non payment issues on fee bills. I study the state wind pools for members of ClaimSmentor as the wind pools often present the greatest opportunity for independent insurance adjuster assignments during major disasters. Only you can decide if you are comfortable working for an adjusting firm or insurance company. We do hope the links posted above  help you make the best possible decision.

Should you decide you do wish to work assignments for them, we have been able to locate only one adjusting firm thus far offering Louisiana Citizens Adjuster Certification and that is AmCat.  Here is a link to their training site offering not only Louisiana Citizens certification but certification for many other carriers:

http://www.adjusterclasses.com/

Advertisements

We'd love to hear from you- please leave a reply with your comments!

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: