Louisiana Department of Insurance
MONTHLY REPORT
Volume 12, Issue 2
February 2012


Members

Commissioner Jim Donelon
Theodore "Ted" Haik, Jr., Chair
Jeff Albright, Vice Chair

Raymond J. Aleman, Sr.
Lee Ann Alexander
Paul Buffone
Sheriff Greg Champagne
Representative Greg Cromer

Manuel DePascual
Nick Gautreaux
Michael Guy
Lance "Wes" Hataway
LTC John A. LeBlanc
Senator Eric LaFleur
Ann Metrailer
Robert Moorman
Senator Dan "Blade" Morrish
Chris Roy, Jr.
Stephen Schrempp
Representative Kirk Talbot
Earl Taylor
Rina Thomas


Staff


Terrell B. Moss, Director

David Evans,
Supervisor/Research Analyst

Katie Walsh, Administrative Assist./Research Analyst

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Press Release: LDI Recovers Over $5.3 Million for Consumers in 2011

Commissioner Jim Donelon announced that the Louisiana Department of Insurance (LDI) aided Louisiana insurance consumers in receiving over $5.3 million in insurance payments from consumer complaints last year.

The recovered funds result from insurance claims disputes in which LDI was able to work with insurance companies and consumers to recover monies above what the insurance companies originally offered the consumers to settle their claims. Funds recovered are from formal complaints regarding property and casualty, health insurance, life and annuities, and consumer advocacy claims.

2011 Consumer Insurance Dispute Settlements

Inquiries

Complaints Filed

Funds Recovered

Office of Property & Casualty

4,257

1,731

$ 1,692,006.26

Office of Health

672

1,248

$ 1,053,003.58

Division of Life & Annuity

8,257

471

$2,541,777.04

Office of Consumer Advocacy

22

3

$22,551.56

Total

13,208

3,453

$5,309,338.44

“Our staff works diligently to see that Louisiana’s insurance consumers are being treated fairly by the insurance companies they pay to protect them and their property,” Donelon said. “These tangible, positive rewards indicate our success in responding to consumer concerns across all of the insurance sectors in Louisiana.”

Don’t Forget to Protect Those Sparkly New Valentine’s Day Gifts…

If your sweetheart gave you jewelry as a token of their affection, don’t forget to insure it!

Because most homeowner’s insurance policies limit the amount of reimbursement for valuable items, remember to update your homeowner’s insurance to include the valuables. It may be necessary to purchase additional coverage for these items in the event that they are misplaced or lost during a fire or a hurricane evacuation, or stolen during a robbery. 

Insurance agents recommend keeping pictures or videos along with a written list documenting your valuables.

“Insure” Wedding Day Bliss

If you were struck by Cupid’s arrow this month and are planning to wed your Valentine, wedding insurance may be something to look into. Planning a wedding can be a stressful task in itself. Consider the added stress of your wedding venue going bankrupt or your photographer going out of business before your big day.

A wedding can be a significant and costly investment- much like a car is a significant investment- that can be protected by insurance coverage. According to the 2011 Brides American Wedding Study, weddings cost about $26,500 on average. To insure a $25,000 wedding celebration, premiums may range from $320 to $420, which includes cancellation and liability coverage, as well as insurance for items such as attire, photography, wedding gifts and rehearsal dinner.1

If you opt not to take out a separate wedding policy, certain aspects of the wedding (like engagement rings and wedding gifts) may be covered through homeowner’s or renter’s insurance policies.

Some companies have reported a significant increase in wedding insurance sales over the past five years, perhaps due to the unstable economic climate.

Source 1: usatoday.com

LPCIC Meeting

The Louisiana Property and Casualty Insurance Commission (LPCIC) met this month to discuss and vote on recommendations which will be included in the LPCIC Annual Report to the Legislature. Also welcomed to the Commission were two new members: Chairman of the House Committee on Insurance- Representative Greg Cromer, and an additional member of the committee- Representative Kirk Talbot.

Mr. Manuel DePascual, Chairman of the LPCIC Homeowner’s Ad Hoc Committee, discussed wind mitigation and building codes, although at this time, no legislative recommendations were made. The committee will continue to monitor those issues.

The Commission supported legislation pertinent to the Office of Motor Vehicles (OMV) presented by Mr. Nick Gautreaux, Commissioner of OMV.

Mr. Mike Barron, Impaired Driving Coordinator for the Louisiana Highway Safety Commission, informed the LPCIC about recommendations that were proposed by the Governor’s Task Force on DWI and Vehicular Homicide.

The LPCIC Annual Report will be submitted to the Legislature before the start of the 2012 Regular Session beginning on March 12th.  The report should be posted on the Department of Insurance Web site (www.ldi.la.gov) by March 15th.