After taking the four-hour course himself earlier this week, Metro Councilman Buddy Amoroso says he's moving forward with his push to require all city-parish employees who drive municipal vehicles—except those in the police and fire departments—to get the driver safety certification. "I thought it was an excellent class, and I think it would accomplish what I'm trying to do," Amoroso says. What he's trying to do, aside from improving safety, is reduce the number of insurance claims on which the city-parish is paying out due to accidents involving its employees where they're found to be at fault. The course is administered by the city-parish Human Resources Department and certified by the National Safety Council. When completed, the certification is good for two years. Amoroso says the ordinance he's introducing Wednesday would require 671 city-parish employees to take it. The 981 fire and police department employees would be exempt, he says, because they're already...
In an effort to increase the safety of both city-parish employees and the public—as well as cut down on the number of insurance claims the city is paying out for auto accidents—Metro Councilman Buddy Amoroso is proposing that employees who drive municipal vehicles be required to take a driver safety course. "Every meeting, we're paying out on some pretty costly settlements for automobile accidents that city-parish drivers have gotten into and they're at fault," Amoroso says. "Tonight, actually, we have one that is for $450,000, and it's not the only one on the agenda." Amoroso is asking the council at today's meeting to set a public hearing on May 22 to discuss the issue. Amoroso says he intends on taking the course himself before the public hearing to ensure it's worth employees' time and the $2 per participant fee it would cost the city-parish. The police department, Amoroso says, would not be included in the requirement. Also at today's meeting, the council will take...
A potential deal is in the works to sell the 1.1-acre vacant lot and parking garage on the capitol grounds to the Legislature, which would use the property for a new office building for the legislative auditor and his staff. Michael DiResto, a spokesman for the Division of Administration, confirms the administration "has been in discussions with the legislative auditor and legislative leadership about them purchasing the property for the appraised value," adding the administration is open to the idea. Earlier this year, Commissioner of Administration Kristy Nichols raised eyebrows—both around the Capitol and in neighboring Spanish Town—when she released a list of surplus properties the state hopes to sell to help balance the 2013-14 budget. Among the properties was the vacant lot and garage, site of the former Department of Insurance building, with an appraised value of some $5 million. Why one arm of the state, in the interest of generating revenue, would sell surplus...
Large rate hikes for customers of Louisiana's property insurer of last resort would require legislative approval, under a bill that received Senate Insurance Committee backing today. St. Mary Parish Sen. Bret Allain sponsored the measure after residents of his parish who get insurance from the Louisiana Citizens Property Insurance Corp. recently faced rate hikes of 171%. Allain says he wants to make sure insurance isn't overpriced and to prevent huge increases that hit property owners too quickly. The bill would require annual rate hikes more than 25% to get approval from the House and Senate insurance committees. It also would allow Citizens to spread increases over two to five years. The proposal, approved without objection, now heads to the full Senate.
Four years after local investors filed a class-action lawsuit against Stanford Group Co., lawyers still are arguing over which court should handle the case. The investors want it heard in state court, while six insurance companies are fighting for it to remain in federal court. Meanwhile, a seventh insurer is arguing in favor of an arbitration panel in Bermuda. The case was originally filed in August 2009 in Baton Rouge state court, and last December, state District Judge Michael Caldwell certified that anyone in Louisiana who invested with the Stanford Group after Jan. 1, 2007, could join the class action. That decision is under review by the First Circuit Court of Appeal. But then in March, six of the insurance companies named as defendants had the case moved to federal court, arguing it was the more appropriate venue. Attorney Phil Preis, the attorney representing the investors, argues in a memo to the judge that insurers are playing "a cruel and expensive hoax" on the courts and...
Baton Rouge-based CellControl, which specializes in technologies aimed at eliminating distracted driving, has signed an agreement with San Francisco-based Esurance to provide the insurance company's teenage customers with CellControl devices in their cars.
After suing the federal government to recover nearly $2.8 million in income taxes and penalties it paid last year under protest, the Baton Rouge-based Louisiana Health Care Self Insurance Fund now faces a demand for $1.7 million more. LHCSIF is an unincorporated association of employers providing workers' compensation to its member employers. Its lawsuit against the government seeks the refund of back taxes and penalties the IRS demanded in 2010, including $992,142 for 2002, $1.2 million for 2003, and $531,907 for 2004. At issue are dividends LHCSIF is required by law to pay to its policyholders when the premiums they pay exceed expenses and claims in a given year. The IRS contends such dividends weren't tax deductible, because of the timing of the payments, and sent threats that it was going to seize the fund's property if the taxes weren't paid. Last week, the federal tax agency responded to the LHCSIF lawsuit with a counterclaim, asking the court to order a judgment against the...
The governing board for Louisiana's property insurer of last resort isn't revisiting a $100 million borrowing plan that has stalled at the Capitol. The board for the Louisiana Citizens Property Insurance Corp. didn't choose an alternate approach to balance the company's books. Instead, Steve Cottrell, chief financial officer for Citizens, says he'll closely monitor the cash flow at the company and keep board members updated if Citizens becomes unable to cover its costs. Last month, the Citizens board supported the $100 million borrowing plan. But the idea ran into problems with the State Bond Commission, which refused to vote on the proposal. Gov. Bobby Jindal and Insurance Commissioner Jim Donelon oppose the borrowing plan, saying Citizens can use a line of credit from the bank if needed.
A new listing of the most expensive states in which to insure a vehicle has again placed Louisiana at the top. Insure.com's annual ranking is just the latest to rank Louisiana No. 1 for high auto insurance rates. The website says the average motorist in the state pays an annual premium of $2,699 to insure one vehicle, compared to a national average of $1,510. A number of other websites and industry associations annually rank Louisiana at or near the top of similar rankings. "Louisiana can't catch a break," says Amy Danise, editorial director for the website. "It is consistently at the top of our rankings. One way to mitigate the rate pain is to buy the cheapest car to insure in the state." That would be the Jeep Patriot Sport, Danise says. The most expensive car to insure in Louisiana is the Mercedes-Benz S65 AMG sedan, she says. As for why the state has such high auto insurance premiums, Insure.com says, "A high portion of Louisiana drivers who are in accidents file bodily injury...
Louisiana Workers' Compensation Corp. says it notched its largest dividend ever in 2012—$48.7 million—and that it will begin paying it back to qualifying policyholders in the state next month. Last year's dividend is more than double that which LWCC recorded in 2011, $23.5 million. The previous record dividend the firm recorded was $45.5 million in 2007. LWCC Chairman Donald Bollinger says in a prepared statement that "LWCC's substantial dividend for 2012 clearly reflects the company's outstanding financial performance during the year." LWCC says its paid policyholders more than $231 million in dividends over the past decade. More than 16,000 policyholders will receive a portion of the new dividend. Individual dividend awards are based on a calculation that takes into account policyholders' premium and longevity with LWCC over the last five years, the firm says. LWCC is a private nonprofit and the largest writer of workers' compensation insurance in the state.
First-time claims for unemployment insurance in Louisiana for the week ending Feb. 16 decreased from the previous week's total. The state labor department figures released today show the initial claims decreased to 2,426 from the previous week's total of 2,829. For the comparable week a year earlier, there were 3,007 initial claims. The four-week moving average, which is a less volatile measure of claims, decreased to 2,821 from the previous week's total of 3,177. Continued unemployment claims filed for the week ending Feb. 16 decreased to 29,100 compared to 29,781 the previous week. The four-week moving average for such claims decreased to 30,433 from the previous week's average of 31,309.
Few outside the insurance industry may have given much thought to last week's announcement that Insurance Commissioner Jim Donelon will take over as president of the National Association of Insurance Commissioners, effective tomorrow. But those in the industry say the move has positive implications for Louisiana and signals a big change in the way the rest of the industry views the state. "It shows that the rest of the regulatory industry looks to Louisiana as a leader," says Tom Clark, an insurance regulatory attorney with Adams and Reese. "We're not backwards. We're not corrupt. We're where we need to be." That's especially important given the recent history of Louisiana, where three successive insurance commissioners in the 1980s and 1990s were convicted on federal charges. Clark says former Insurance Commissioner Robert Wooley began to turn the state's image in this area around in the early 2000s but that Donelon, who became commissioner in 2006, "has really kicked it up a...
The 66,000-square foot building on Towne Center Boulevard that has housed the State Farm Operations Center since it was constructed in 2006 is available for lease beginning in June. It is unclear whether the insurance giant will relocate all of its local operations and what a move might mean for the center's some 200 employees. "As we approach the end of the current lease, we are exercising our option to survey the Baton Rouge area to ensure that we are in a facility that best fits our size and business needs," says State Farm spokesman Gary Stephenson. The property is owned by Kansas City, Mo.-based developer Steve Brettell, according to local realtor and listing agent Ty Gose. State Farm has been leasing the property from Brettell, though it has never occupied the entire building. Gose says State Farm may renegotiate its lease and retain a portion of the Class A space or relocate altogether. In a written statement, Stephenson declines to elaborate, saying, "This is a normal...
With 43 employees added to the payroll over the past three years, Baton Rouge-based Starmount Life Insurance is included on Inc. magazine's 2012 Hire Power Awards list of the top creators of full-time jobs in the United States. This is the first year Inc. has compiled the list. On it there are just five companies from Louisiana, and Starmount is the only one based in Baton Rouge. Also on the list from Louisiana are: Acadian Companies of Lafayette (773 jobs added); Coast Professional of West Monroe (112); NewBath of New Orleans (46); and Netchex of Mandeville (35). "It is a major accomplishment to be recognized for being a top job creator in the United States in this economic climate," says Starmount Chairman and CEO Hans Sternberg in a prepared statement. Starmount has previously been recognized by Inc. five times as one of the country's fastest-growing private companies. The life and health insurance carrier's business reaches nearly every corner of the...
Access Home Insurance Co. of Baton Rouge, which a year ago took over 3,158 policies from the state's property insurer of last resort, is one of three private insurers set to take over more Louisiana Citizens Property Insurance Corp. policies in the coming weeks, The Times-Picayune reports. Citizens has shed 67,662 policies to private insurers in the last four years, and company officials estimate that it may lose another 5,000 in the next few weeks, says Chief Operating Officer Vijay Ramachandran. Aside form Access Home Insurance Co., the firms that will pick up policies are: Lighthouse Property Insurance Co. of Orlando, Fla., which has assumed more than 18,000 policies since 2008; and Centauri Insurance, which took over 948 policies last year. The three companies, Ramachandran says, "know the process, they know the rules" and want to take over more policies. Citizens embarked on the "de-population" program beginning in 2008 as a way to reduce the potential financial burden on...
Two health care groups have filed a lawsuit against state Commissioner of Insurance Jim Donelon over an insurance coverage change he made after Hurricane Isaac. The lawsuit by the Louisiana State Medical Society and the Louisiana Hospital Association was filed in Baton Rouge district court late Monday, challenging an emergency rule Donelon issued on Sept. 4. The emergency rule affected health insurance policies in 23 parishes. It required that emergency out-of-network medical care be treated like an in-network claim, a move that eliminates higher charges for some patients and sidesteps existing contracts between health providers and insurers. The medical society says Donelon exceeded his authority, interfered with contractual arrangements and restricted the rights of doctors to bill patients for services. The rule covered activity from Aug. 26 through Sept. 25.
The havoc that Hurricane Gustav wreaked on Baton Rouge in 2008 brought a deluge of customer calls to Marathon Tree Service. Owner Ted Harbourt says he subcontracted 3,500 orders with four companies from out of state and spent more than a month cutting trees out of houses and tying tarps down on roofs.
The Louisiana Department of Insurance has amended its Emergency Rule 26 to address concerns of insured homeowners in 23 Louisiana parishes—including East Baton Rouge and surrounding parishes—who were recently displaced by Hurricane Isaac. The emergency rule is aimed to assist displaced policyholders by granting extensions on insurance payments, allowing out-of-network medical care without penalties and forbidding the cancellation of a policy due to a storm-related claim. The amended rule clarifies the parishes in which it applies, and also extends the amount of time insured homeowners have to provide the required written notice about their displacement to their insurance companies. That date is now Sept. 25. That's also the deadline for policyholders to pay for insurance premiums due on or after Aug. 26 without penalty, under the emergency rule. The amendment also includes the suspension of other statutes and regulations in regards to policy cancellations, non-renewals,...
Allstate Corp. stands to benefit from its decision to scale back homeowners' risk in Louisiana and cede market share to State Farm Mutual Automobile Insurance Co., as Hurricane Isaac threatens the U.S. Gulf Coast. Allstate's sales of residential policies in Louisiana fell to $209 million last year, 19% less than in 2006, according to A.M. Best data compiled by Bloomberg. State Farm, the only U.S. homeowners' carrier larger than Allstate, sold $466 million of the protection in the state in 2011, a 25% increase from five years earlier. Allstate, led by CEO Tom Wilson, has been raising prices for coverage, buying reinsurance, and shifting where it sells policies to improve homeowners' underwriting results nationally. "They've cut back on coastal exposure, in general," Paul Newsome, an analyst at Sandler O'Neill & Partners, says of Northbrook, Ill.-based Allstate. "It's been a major strategy for them." And it appears to be working; Allstate shares are up 37% since Dec. 31. State Farm is...
Insurance policyholders across Louisiana have collected an additional $2.6 million in payments during the first six months of the year, compared to year-to-date figures from 2011, says Louisiana Department of Insurance Commissioner Jim Donelon in a news release. The recovered funds result from insurance claims disputes in which the state Insurance Department worked with insurance companies and consumers to recover funds in addition to the original amounts offered by insurance companies. "Many people may not realize that the knowledgeable staff at the LDI can help you determine when to file a complaint against a company, or help you resolve disputes with insurers," says Donelon. "I encourage folks to continue to reach out to us for assistance in determining what options are available to them when they are unsatisfied with the resolution of a claim." Between January and June of this year, LDI reports receiving nearly 7,000 inquiries and more than 1,500 consumer complaints. Read the...
As teachers in East Baton Rouge Parish prepare to go back to school Wednesday, many are just finding out they will not be able to automatically take sabbaticals or extended sick leave, at least not for the duration of the 2012-13 school year. Instead, they'll have to get approval first. The East Baton Rouge Parish School Board voted earlier this year to restrict those benefits—estimated to cost the system about $2 million—as part of an overall $28.4 million budget reduction. The restriction does not apply to regular, paid sick leave or maternity leave; only to sabbaticals and extended sick leave, which is defined as 90 days in a six-year period. Still, some educators were caught off guard, as they were not made aware of the changes until this week. School board members say they're not trying to punish educators but are rather merely finding effective ways of saving money. "There are people who would take a sabbatical and then retire," says school board member Craig...
The average Louisiana driver forks over about $2,885 to keep his or her vehicles insured each year, according to a new report from CarInsuranceQuotes.com. That's about 5.5% of the median household income in the state, which is $52,456. By that measure, Louisianans are paying the second-highest auto premiums in the country. Michigan residents spend the most on auto insurance—about 8% of the median household income of $56,101—according to the report. The rate in Louisiana is so high compared to other states because it "is not a no-fault car insurance state. Instead, it has a traditional fault-based system, also called a tort system," the report says. "Experts say the big reason for Louisiana's high car insurance premiums is that, while the state has a fairly average number of car accidents compared with other states, it leads the country in injury claims. In Louisiana, 43% of accidents involving property damage in 2006 included injury claims, compared with the national...
Nicole Achee has been named vice president and commercial lending officer at United Community Bank. She has more than 10 years of banking experience. She most recently served at Regions Bank. In her new role, she will oversee managing commercial relationships and will be responsible for new business development in the Baton Rouge market.
A pair of Baton Rouge-based insurance agencies—McInnis Tyner Inc. Insurance Agency and Integra Insurance—are teaming up to expand operations in Louisiana and Texas. "This is going to give us the opportunity to grow our agency tenfold," says McInnis Tyner President Charles McInnis Jr., adding that customers will not notice any changes in day-to-day operations. Financial terms of the deal, which has been more than a year in the making, were not disclosed. While McInnis says he now has an ownership stake in Integra, he describes the deal as more of a strategic partnership than an acquisition. "We've acquired some small companies in the past few years, but this is something that's a little larger and a lot more strategic," McInnis says. "Partnering with Integra … allows for rapid geographic reach as well as specialty expertise in areas such as marine, construction and surety." The deal immediately expands McInnis Tyner's reach into the New Orleans and Lake Charles...
Nearly 700 city-parish employees could be made to take driver safety course
After taking the four-hour course himself earlier this week, Metro Councilman Buddy Amoroso says he's moving forward with his push to require all city-parish employees who drive municipal vehicles—except those in the police and fire departments—to get the driver safety certification. "I thought it was an excellent class, and I think it would accomplish what I'm trying to do," Amoroso says. What he's trying to do, aside from improving safety, is reduce the number of insurance claims on which the city-parish is paying out due to accidents involving its employees where they're found to be at fault. The course is administered by the city-parish Human Resources Department and certified by the National Safety Council. When completed, the certification is good for two years. Amoroso says the ordinance he's introducing Wednesday would require 671 city-parish employees to take it. The 981 fire and police department employees would be exempt, he says, because they're already...
Amoroso wants city-parish drivers to take safety course
In an effort to increase the safety of both city-parish employees and the public—as well as cut down on the number of insurance claims the city is paying out for auto accidents—Metro Councilman Buddy Amoroso is proposing that employees who drive municipal vehicles be required to take a driver safety course. "Every meeting, we're paying out on some pretty costly settlements for automobile accidents that city-parish drivers have gotten into and they're at fault," Amoroso says. "Tonight, actually, we have one that is for $450,000, and it's not the only one on the agenda." Amoroso is asking the council at today's meeting to set a public hearing on May 22 to discuss the issue. Amoroso says he intends on taking the course himself before the public hearing to ensure it's worth employees' time and the $2 per participant fee it would cost the city-parish. The police department, Amoroso says, would not be included in the requirement. Also at today's meeting, the council will take...
Former department of insurance site may go to legislative auditor
A potential deal is in the works to sell the 1.1-acre vacant lot and parking garage on the capitol grounds to the Legislature, which would use the property for a new office building for the legislative auditor and his staff. Michael DiResto, a spokesman for the Division of Administration, confirms the administration "has been in discussions with the legislative auditor and legislative leadership about them purchasing the property for the appraised value," adding the administration is open to the idea. Earlier this year, Commissioner of Administration Kristy Nichols raised eyebrows—both around the Capitol and in neighboring Spanish Town—when she released a list of surplus properties the state hopes to sell to help balance the 2013-14 budget. Among the properties was the vacant lot and garage, site of the former Department of Insurance building, with an appraised value of some $5 million. Why one arm of the state, in the interest of generating revenue, would sell surplus...
Large Citizens rates would require legislative OK
Large rate hikes for customers of Louisiana's property insurer of last resort would require legislative approval, under a bill that received Senate Insurance Committee backing today. St. Mary Parish Sen. Bret Allain sponsored the measure after residents of his parish who get insurance from the Louisiana Citizens Property Insurance Corp. recently faced rate hikes of 171%. Allain says he wants to make sure insurance isn't overpriced and to prevent huge increases that hit property owners too quickly. The bill would require annual rate hikes more than 25% to get approval from the House and Senate insurance committees. It also would allow Citizens to spread increases over two to five years. The proposal, approved without objection, now heads to the full Senate.
Court situation still uncertain in Stanford Group case
Four years after local investors filed a class-action lawsuit against Stanford Group Co., lawyers still are arguing over which court should handle the case. The investors want it heard in state court, while six insurance companies are fighting for it to remain in federal court. Meanwhile, a seventh insurer is arguing in favor of an arbitration panel in Bermuda. The case was originally filed in August 2009 in Baton Rouge state court, and last December, state District Judge Michael Caldwell certified that anyone in Louisiana who invested with the Stanford Group after Jan. 1, 2007, could join the class action. That decision is under review by the First Circuit Court of Appeal. But then in March, six of the insurance companies named as defendants had the case moved to federal court, arguing it was the more appropriate venue. Attorney Phil Preis, the attorney representing the investors, argues in a memo to the judge that insurers are playing "a cruel and expensive hoax" on the courts and...
The car app
Baton Rouge-based CellControl, which specializes in technologies aimed at eliminating distracted driving, has signed an agreement with San Francisco-based Esurance to provide the insurance company's teenage customers with CellControl devices in their cars.
IRS wants another $1.7M from Louisiana health care fund
After suing the federal government to recover nearly $2.8 million in income taxes and penalties it paid last year under protest, the Baton Rouge-based Louisiana Health Care Self Insurance Fund now faces a demand for $1.7 million more. LHCSIF is an unincorporated association of employers providing workers' compensation to its member employers. Its lawsuit against the government seeks the refund of back taxes and penalties the IRS demanded in 2010, including $992,142 for 2002, $1.2 million for 2003, and $531,907 for 2004. At issue are dividends LHCSIF is required by law to pay to its policyholders when the premiums they pay exceed expenses and claims in a given year. The IRS contends such dividends weren't tax deductible, because of the timing of the payments, and sent threats that it was going to seize the fund's property if the taxes weren't paid. Last week, the federal tax agency responded to the LHCSIF lawsuit with a counterclaim, asking the court to order a judgment against the...
No new plan for dealing with Citizens' budget gap
The governing board for Louisiana's property insurer of last resort isn't revisiting a $100 million borrowing plan that has stalled at the Capitol. The board for the Louisiana Citizens Property Insurance Corp. didn't choose an alternate approach to balance the company's books. Instead, Steve Cottrell, chief financial officer for Citizens, says he'll closely monitor the cash flow at the company and keep board members updated if Citizens becomes unable to cover its costs. Last month, the Citizens board supported the $100 million borrowing plan. But the idea ran into problems with the State Bond Commission, which refused to vote on the proposal. Gov. Bobby Jindal and Insurance Commissioner Jim Donelon oppose the borrowing plan, saying Citizens can use a line of credit from the bank if needed.
La. auto insurance rates again listed as highest in U.S.
A new listing of the most expensive states in which to insure a vehicle has again placed Louisiana at the top. Insure.com's annual ranking is just the latest to rank Louisiana No. 1 for high auto insurance rates. The website says the average motorist in the state pays an annual premium of $2,699 to insure one vehicle, compared to a national average of $1,510. A number of other websites and industry associations annually rank Louisiana at or near the top of similar rankings. "Louisiana can't catch a break," says Amy Danise, editorial director for the website. "It is consistently at the top of our rankings. One way to mitigate the rate pain is to buy the cheapest car to insure in the state." That would be the Jeep Patriot Sport, Danise says. The most expensive car to insure in Louisiana is the Mercedes-Benz S65 AMG sedan, she says. As for why the state has such high auto insurance premiums, Insure.com says, "A high portion of Louisiana drivers who are in accidents file bodily injury...
LWCC posts record-high dividend
Louisiana Workers' Compensation Corp. says it notched its largest dividend ever in 2012—$48.7 million—and that it will begin paying it back to qualifying policyholders in the state next month. Last year's dividend is more than double that which LWCC recorded in 2011, $23.5 million. The previous record dividend the firm recorded was $45.5 million in 2007. LWCC Chairman Donald Bollinger says in a prepared statement that "LWCC's substantial dividend for 2012 clearly reflects the company's outstanding financial performance during the year." LWCC says its paid policyholders more than $231 million in dividends over the past decade. More than 16,000 policyholders will receive a portion of the new dividend. Individual dividend awards are based on a calculation that takes into account policyholders' premium and longevity with LWCC over the last five years, the firm says. LWCC is a private nonprofit and the largest writer of workers' compensation insurance in the state.
La. weekly unemployment insurance claims dip
First-time claims for unemployment insurance in Louisiana for the week ending Feb. 16 decreased from the previous week's total. The state labor department figures released today show the initial claims decreased to 2,426 from the previous week's total of 2,829. For the comparable week a year earlier, there were 3,007 initial claims. The four-week moving average, which is a less volatile measure of claims, decreased to 2,821 from the previous week's total of 3,177. Continued unemployment claims filed for the week ending Feb. 16 decreased to 29,100 compared to 29,781 the previous week. The four-week moving average for such claims decreased to 30,433 from the previous week's average of 31,309.
Donelon's new industry role a plus for La.
Few outside the insurance industry may have given much thought to last week's announcement that Insurance Commissioner Jim Donelon will take over as president of the National Association of Insurance Commissioners, effective tomorrow. But those in the industry say the move has positive implications for Louisiana and signals a big change in the way the rest of the industry views the state. "It shows that the rest of the regulatory industry looks to Louisiana as a leader," says Tom Clark, an insurance regulatory attorney with Adams and Reese. "We're not backwards. We're not corrupt. We're where we need to be." That's especially important given the recent history of Louisiana, where three successive insurance commissioners in the 1980s and 1990s were convicted on federal charges. Clark says former Insurance Commissioner Robert Wooley began to turn the state's image in this area around in the early 2000s but that Donelon, who became commissioner in 2006, "has really kicked it up a...
State Farm may leave Towne Center
The 66,000-square foot building on Towne Center Boulevard that has housed the State Farm Operations Center since it was constructed in 2006 is available for lease beginning in June. It is unclear whether the insurance giant will relocate all of its local operations and what a move might mean for the center's some 200 employees. "As we approach the end of the current lease, we are exercising our option to survey the Baton Rouge area to ensure that we are in a facility that best fits our size and business needs," says State Farm spokesman Gary Stephenson. The property is owned by Kansas City, Mo.-based developer Steve Brettell, according to local realtor and listing agent Ty Gose. State Farm has been leasing the property from Brettell, though it has never occupied the entire building. Gose says State Farm may renegotiate its lease and retain a portion of the Class A space or relocate altogether. In a written statement, Stephenson declines to elaborate, saying, "This is a normal...
B.R. firm makes 'Inc.' list of top job creators in U.S.
With 43 employees added to the payroll over the past three years, Baton Rouge-based Starmount Life Insurance is included on Inc. magazine's 2012 Hire Power Awards list of the top creators of full-time jobs in the United States. This is the first year Inc. has compiled the list. On it there are just five companies from Louisiana, and Starmount is the only one based in Baton Rouge. Also on the list from Louisiana are: Acadian Companies of Lafayette (773 jobs added); Coast Professional of West Monroe (112); NewBath of New Orleans (46); and Netchex of Mandeville (35). "It is a major accomplishment to be recognized for being a top job creator in the United States in this economic climate," says Starmount Chairman and CEO Hans Sternberg in a prepared statement. Starmount has previously been recognized by Inc. five times as one of the country's fastest-growing private companies. The life and health insurance carrier's business reaches nearly every corner of the...
B.R. insurer among 3 firms taking on more Louisiana Citizens policies
Access Home Insurance Co. of Baton Rouge, which a year ago took over 3,158 policies from the state's property insurer of last resort, is one of three private insurers set to take over more Louisiana Citizens Property Insurance Corp. policies in the coming weeks, The Times-Picayune reports. Citizens has shed 67,662 policies to private insurers in the last four years, and company officials estimate that it may lose another 5,000 in the next few weeks, says Chief Operating Officer Vijay Ramachandran. Aside form Access Home Insurance Co., the firms that will pick up policies are: Lighthouse Property Insurance Co. of Orlando, Fla., which has assumed more than 18,000 policies since 2008; and Centauri Insurance, which took over 948 policies last year. The three companies, Ramachandran says, "know the process, they know the rules" and want to take over more policies. Citizens embarked on the "de-population" program beginning in 2008 as a way to reduce the potential financial burden on...
Health groups sue Donelon over emergency Isaac action
Two health care groups have filed a lawsuit against state Commissioner of Insurance Jim Donelon over an insurance coverage change he made after Hurricane Isaac. The lawsuit by the Louisiana State Medical Society and the Louisiana Hospital Association was filed in Baton Rouge district court late Monday, challenging an emergency rule Donelon issued on Sept. 4. The emergency rule affected health insurance policies in 23 parishes. It required that emergency out-of-network medical care be treated like an in-network claim, a move that eliminates higher charges for some patients and sidesteps existing contracts between health providers and insurers. The medical society says Donelon exceeded his authority, interfered with contractual arrangements and restricted the rights of doctors to bill patients for services. The rule covered activity from Aug. 26 through Sept. 25.
Isaac-related insurance claims still rolling in; total tally unknown
The havoc that Hurricane Gustav wreaked on Baton Rouge in 2008 brought a deluge of customer calls to Marathon Tree Service. Owner Ted Harbourt says he subcontracted 3,500 orders with four companies from out of state and spent more than a month cutting trees out of houses and tying tarps down on roofs.
Capital Region included in amended insurance emergency rule
The Louisiana Department of Insurance has amended its Emergency Rule 26 to address concerns of insured homeowners in 23 Louisiana parishes—including East Baton Rouge and surrounding parishes—who were recently displaced by Hurricane Isaac. The emergency rule is aimed to assist displaced policyholders by granting extensions on insurance payments, allowing out-of-network medical care without penalties and forbidding the cancellation of a policy due to a storm-related claim. The amended rule clarifies the parishes in which it applies, and also extends the amount of time insured homeowners have to provide the required written notice about their displacement to their insurance companies. That date is now Sept. 25. That's also the deadline for policyholders to pay for insurance premiums due on or after Aug. 26 without penalty, under the emergency rule. The amendment also includes the suspension of other statutes and regulations in regards to policy cancellations, non-renewals,...
'Real Estate Weekly': Allstate likely to benefit from reducing La. coastal coverage
Allstate Corp. stands to benefit from its decision to scale back homeowners' risk in Louisiana and cede market share to State Farm Mutual Automobile Insurance Co., as Hurricane Isaac threatens the U.S. Gulf Coast. Allstate's sales of residential policies in Louisiana fell to $209 million last year, 19% less than in 2006, according to A.M. Best data compiled by Bloomberg. State Farm, the only U.S. homeowners' carrier larger than Allstate, sold $466 million of the protection in the state in 2011, a 25% increase from five years earlier. Allstate, led by CEO Tom Wilson, has been raising prices for coverage, buying reinsurance, and shifting where it sells policies to improve homeowners' underwriting results nationally. "They've cut back on coastal exposure, in general," Paul Newsome, an analyst at Sandler O'Neill & Partners, says of Northbrook, Ill.-based Allstate. "It's been a major strategy for them." And it appears to be working; Allstate shares are up 37% since Dec. 31. State Farm is...
La. policyholders collected an additional $2.6M through June
Insurance policyholders across Louisiana have collected an additional $2.6 million in payments during the first six months of the year, compared to year-to-date figures from 2011, says Louisiana Department of Insurance Commissioner Jim Donelon in a news release. The recovered funds result from insurance claims disputes in which the state Insurance Department worked with insurance companies and consumers to recover funds in addition to the original amounts offered by insurance companies. "Many people may not realize that the knowledgeable staff at the LDI can help you determine when to file a complaint against a company, or help you resolve disputes with insurers," says Donelon. "I encourage folks to continue to reach out to us for assistance in determining what options are available to them when they are unsatisfied with the resolution of a claim." Between January and June of this year, LDI reports receiving nearly 7,000 inquiries and more than 1,500 consumer complaints. Read the...
EBR teachers now need permission for extended leave
As teachers in East Baton Rouge Parish prepare to go back to school Wednesday, many are just finding out they will not be able to automatically take sabbaticals or extended sick leave, at least not for the duration of the 2012-13 school year. Instead, they'll have to get approval first. The East Baton Rouge Parish School Board voted earlier this year to restrict those benefits—estimated to cost the system about $2 million—as part of an overall $28.4 million budget reduction. The restriction does not apply to regular, paid sick leave or maternity leave; only to sabbaticals and extended sick leave, which is defined as 90 days in a six-year period. Still, some educators were caught off guard, as they were not made aware of the changes until this week. School board members say they're not trying to punish educators but are rather merely finding effective ways of saving money. "There are people who would take a sabbatical and then retire," says school board member Craig...
Report: Louisianans pay second-highest auto insurance premiums in U.S.
The average Louisiana driver forks over about $2,885 to keep his or her vehicles insured each year, according to a new report from CarInsuranceQuotes.com. That's about 5.5% of the median household income in the state, which is $52,456. By that measure, Louisianans are paying the second-highest auto premiums in the country. Michigan residents spend the most on auto insurance—about 8% of the median household income of $56,101—according to the report. The rate in Louisiana is so high compared to other states because it "is not a no-fault car insurance state. Instead, it has a traditional fault-based system, also called a tort system," the report says. "Experts say the big reason for Louisiana's high car insurance premiums is that, while the state has a fairly average number of car accidents compared with other states, it leads the country in injury claims. In Louisiana, 43% of accidents involving property damage in 2006 included injury claims, compared with the national...
Moving Up
Nicole Achee has been named vice president and commercial lending officer at United Community Bank. She has more than 10 years of banking experience. She most recently served at Regions Bank. In her new role, she will oversee managing commercial relationships and will be responsible for new business development in the Baton Rouge market.
The ratings war
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Two area insurance agencies eye expansion via partnership
A pair of Baton Rouge-based insurance agencies—McInnis Tyner Inc. Insurance Agency and Integra Insurance—are teaming up to expand operations in Louisiana and Texas. "This is going to give us the opportunity to grow our agency tenfold," says McInnis Tyner President Charles McInnis Jr., adding that customers will not notice any changes in day-to-day operations. Financial terms of the deal, which has been more than a year in the making, were not disclosed. While McInnis says he now has an ownership stake in Integra, he describes the deal as more of a strategic partnership than an acquisition. "We've acquired some small companies in the past few years, but this is something that's a little larger and a lot more strategic," McInnis says. "Partnering with Integra … allows for rapid geographic reach as well as specialty expertise in areas such as marine, construction and surety." The deal immediately expands McInnis Tyner's reach into the New Orleans and Lake Charles...