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 trade group.

"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 adds.

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.

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