Donelon: PIAL Should Not
File Suit on Public vs. Private Status
Released: September 21, 2007
Commissioner of Insurance Jim Donelon says the Property
Insurance Association of Louisiana (PIAL) should seek an attorney
general's opinion on issues arising out of the public vs.
private entity debate instead of filing a lawsuit challenging
the view of the state legislative auditor.
The legislative auditor maintains the PIAL is a public body
subject to open meetings, public bid and other state laws
while legal counsel for the PIAL asserts the entity is a private
"The PIAL should be asking the attorney general for
an opinion on these matters just as the Louisiana Citizens
Property Insurance Corporation and the Louisiana Automobile
Insurance Plan (LAIP) boards have indicated they will do when
necessary," Commissioner Donelon says. "When the
PIAL has a question that is beyond their legal counsel's comfort
level, they should access the attorney general for those answers.
This would certainly save policyholders the cost of such litigation," Donelon
Commissioner Donelon is advocating dissolving the PIAL and
the LAIP and turning their operations over to national organizations
that perform the same services across the country. Donelon
says the move will save money and make operations for both
groups more efficient.