I KNOW, KNOW, WE’VE BEEN TALKING ABOUT THESE AVERAGE HOMEOWNERS. THIS IS THEIR AMERICAN DREAM. AND COMMISSIONER, IT’S REALLY TURNED INTO A NIGHTMARE FOR SO MANY PEOPLE WHO ARE BEING FORCED TO SELL THEIR HOMES. HOMES ARE GOING INTO FORECLOSURE. IT’S JUST NOT AFFORDABLE ANYMORE. WHAT IS YOUR RESPONSE TO THESE MANY, MANY VIEWERS WHO HAVE BEEN EMAILING ME AND CALLING ME, SAYING, WHAT CAN BE DONE? CAN THE COMMISSIONER HELP US? WELL, CERTAINLY I GET THE SAME EMAILS, I GET THE SAME PHONE CALLS, YOU KNOW, WEEKLY IF NOT DAILY FROM PEOPLE THAT ARE SAYING I CAN NO LONGER AFFORD MY HOMEOWNER’S INSURANCE, YOU KNOW, AND THAT IS PART OF WHAT IS INCENTIVIZING AND DRIVING US TO MAKE THESE CHANGES. YOU KNOW, LOUISIANA IS FACING A CRISIS, AND WE CERTAINLY ARE IN A DEEP HOMEOWNERS CRISIS. BUT WE ALSO HAVE AN AUTO CRISIS, YOU KNOW, BUT WITH REGARDS TO HOMEOWNERS SPECIFICALLY, YOU KNOW, WE CAN’T CHANGE THE WEATHER. WE DO HAVE A LARGE PERCENTAGE OF OUR POPULATION THAT LIVES IN PROXIMITY TO THE COAST, WHICH MEANS WE HAVE A LARGE PERCENTAGE OF OUR INSURED PROPERTIES THAT ARE IN PROXIMITY TO THE COAST. SO, SO ONE OF THE THINGS THAT WE’RE DOING, WHICH CAN DIRECTLY IMPACT RATES IS TO PROMOTE THE FORTIFIED ROOF PROGRAM. EITHER THROUGH THE GRANT PROGRAM THAT THE DEPARTMENT ADMINISTERS OR ENCOURAGING INDIVIDUALS, IF THEY CAN, TO FORTIFY THEIR ROOFS INDIVIDUALLY WITHOUT GOING THROUGH THE PROGRAM, THROUGH THE FORTIFIED ROOF PROGRAM, YOU CAN GET UP TO $10,000 TOWARDS FORTIFYING YOUR ROOF. YOU DO GET A DISCOUNT. INSURANCE COMPANIES HAVE FILED RATES, YOU KNOW, CREDITS WITH THE DEPARTMENT OF INSURANCE. HOW MUCH OF A DISCOUNT WILL THEY GET AND HOW MUCH DOES IT HELP? THEY RANGE FROM ANYWHERE FROM, I THINK, AS LOW. I THINK INITIALLY COMPANIES FILED 5%. THEY HAVE TO BE ACTUARIALLY JUSTIFIED, BUT THEY STARTED WITH 5%. AND I’VE SEEN SEVERAL CARRIERS HAVE INCREASED THEIR PERCENTAGE SOMEWHERE UP TO 15, SOME 20%. BUT I WANT TO CAUTION YOUR VIEWERS TO UNDERSTAND THAT’S THAT PERCENTAGE IS APPLIED TO THE WIND PORTION OF THEIR INSURANCE. IT’S NOT THEIR ENTIRE PREMIUM. AND I THINK A LOT OF PEOPLE THINK IF I GET A 10%, IT’S 10% OFF THE TOTAL. IT IT DOES HAVE TO BE APPLIED TO THE WIND PORTION, BUT THAT’S ONE WAY TO DIRECTLY IMPACT YOUR YOUR INSURANCE PREMIUMS IN A POSITIVE WAY IMMEDIATELY. AND I SAY IMMEDIATELY, YOU HAVE TO GET THE 4 TO 5 ROOF. WE’RE ENCOURAGING. THE LEGISLATURE TO CONTINUE TO FUND THAT PROGRAM THROUGH THE NEXT YEAR, AND THEN WE’RE GOING TO FIND SOME OUTSIDE AND MORE STABLE FUNDING SOURCES FOR THE FUTURE. AND SOMETHING ELSE I WANT YOUR VIEWERS TO ALSO UNDERSTAND OR BE AWARE OF IS THAT YOU CAN ALSO APPLY FOR A TAX CREDIT, UH, IF YOU IF YOU DO CHOOSE TO DO THE ROOF YOURSELF, YOU CAN GET UP TO $5,000 TOWARD YOUR, YOU KNOW, AS A TAX CREDIT IF YOU CHOOSE TO TAKE ON THAT EXPENSE YOURSELF. OKAY. ALL RIGHT. I KNOW THAT YOU WANT TO AMEND AND GET RID OF THE THREE YEAR RULE, UH, WHICH, YOU KNOW, WHICH IS SUPPOSED TO HELP HOMEOWNERS BECAUSE IT PREVENTS INSURANCE COMPANIES FROM DROPPING YOU AFTER THREE YEARS. IF YOU’VE BEEN A CUSTOMER, CAN YOU TELL US HOW THAT WOULD HELP THE AVERAGE HOMEOWNER? BECAUSE THEN THEY MAY BE FORCED TO GO INTO CITIZENS, WHICH IS THE INSURER OF LAST RESORT. AND THAT’S BY NATURE, BY LAW, MORE EXPENSIVE. SO HOW WOULD GETTING RID OF THE THREE YEAR RULE HELP THE AVERAGE HOMEOWNER? WELL, LOOK, A LOT OF THESE THINGS THAT WE’RE TALKING ABOUT, BILLS THAT WE’RE PROPOSING IN THE LEGISLATURE, ARE COUNTERINTUITIVE. YOU KNOW, PEOPLE TEND TO THINK THAT YOU PASS A BILL TO MAKE INSURANCE SLOWER. WELL, YOU CANNOT FORCE INSURANCE COMPANIES TO LOWER RATES, WHICH YOU CAN DO IS CREATE A COMPETITIVE ENVIRONMENT WHERE COMPETITION TAKES OVER. AND THAT WILL LOWER INSURANCE RATES THROUGH COMPETITION. THE THREE YEAR RULE IS EFFECTIVELY A LAW THAT SAYS ONCE, ONCE YOU’RE HOMEOWNERS CARRIER, HIS HAS GIVEN YOU THREE RENEWALS IN A ROW THAT THEY CAN’T CANCEL YOUR COVERAGE EXCEPT FOR A VERY NARROW SET OF CIRCUMSTANCE. IF YOU FAIL TO PAY YOUR PREMIUM A MATERIAL CHANGE IN RISK, THE CONDITION OF YOUR HOME IS CHANGED. A COUPLE OF ITEMS LIKE THAT. BUT YOU KNOW, IN LOUISIANA, YOU KNOW, LOUISIANA IS THE ONLY STATE THAT HAS THIS LAW IN PLACE. AND SO INSURANCE COMPANIES, YOU KNOW, LIKE BUSINESSES, THEY GET TO PICK AND CHOOSE WHERE THEY DO BUSINESS. AND LOUISIANA, YOU KNOW, IF WE’RE AN OUTLIER WITH THE THREE YEAR RULE, WELL, THEN THAT DOES NOT INCENTIVIZE COMPANIES TO WANT TO COME IN AND DO BUSINESS IN THE STATE OF LOUISIANA. AND SO WHAT WE’RE PROPOSING IS A GRADUAL, UH, DOING AWAY WITH THE LAW. WHAT WE’RE GOING TO, WHAT WE’RE ASKING THE LEGISLATURE TO SUPPORT. AND I KNOW IT’S IT’S A IT’S A TOUGH SUPPORT. BECAUSE A LOT OF PEOPLE THINK IT’S PROTECTION. THEY THINK IT’S CONSUMER PROTECTION. BUT I HEAR STORIES EVERY DAY, PEOPLE SAYING, I CAN’T AFFORD MY INSURANCE. SO IF YOU CAN’T AFFORD YOUR INSURANCE, WHAT GOOD DOES IT YOU TO GET A RENEWAL QUOTE THAT YOU CAN’T EVEN AFFORD? SO WE WANT TO PROMOTE A COMPETITIVE MARKETPLACE, BUT WE’RE GOING TO ASK THE LEGISLATURE TO SUPPORT THE COMPANIES THAT HAVE THESE LEGACY THREE YEAR POLICIES THAT THEY CAN NON RENEW UP TO 5%, 5%. IT’S A SMALL PERCENTAGE. NOW I UNDERSTAND IF YOU’RE ONE OF THAT 5% THEN THAT’S EVERYTHING TO YOU. BUT WE HAVE TO START TO CREATE AN ENVIRONMENT THAT INSURANCE COMPANIES WANT TO COME BACK IN AND DO BUSINESS. AND THAT IS AN IMPORTANT STEP. YEAH. AND YOU ALSO WANT TO ALLOW INSURANCE COMPANIES TO RAISE RATES MORE OFTEN. WELL AGAIN, IT’S IT’S COUNTERINTUITIVE. YOU KNOW, ALL THE OTHER BUSINESSES IN LOUISIANA FREE MARKET REIGNS. YOU GET TO CHANGE RATES. YOU GET TO CHANGE YOUR PRICING. IS IS CONDITIONS ALLOW. AND AGAIN IT’S AN INHIBITOR TO PROMOTING A HEALTHY COMPETITIVE ENVIRONMENT. THE PRIOR COMMISSIONER, YOU KNOW HAD A DESK RULE IN PLACE. AND HE SAID THEY COULD ONLY CHANGE RATES ONCE EVERY 12 MONTHS. AND THEY HAD TO GET APPROVAL TO WRITE IF THEY HAD TO RAISE RATES. THAT’S RIGHT. AND AND THE LEGISLATURE LAST YEAR CHANGED IT. AND SAYS INSURANCE COMPANIES CAN CHANGE RATES AS LONG AS WHENEVER THEY WANT, AS LONG AS THEY’RE ACTUARILY JUSTIFIED INSURANCE. IT’S A LITTLE BIT DIFFERENT. YOU SELL THE PRODUCT, YOU COLLECT THE PREMIUM, AND YOU DON’T KNOW IF YOU’VE MADE MONEY OR NOT UNTIL AFTER THE POLICY ENDS. SO YOU COULD HAVE A YOU COULD HAVE A HURRICANE DURING THAT 12 MONTH PERIOD. YOU COULD HAVE A KITCHEN FIRE. YOU COULD HAVE AN AUTO WRECK. SO, SO, SO TO TO SAY THAT THERE’S A PROFIT, IT’S NOT A GUARANTEED PROFIT. AND AGAIN IT IT MY BELIEF FREE MARKET. YOU LET THE CONSUMER DECIDE WHAT IS. YOU KNOW IF IT’S IF IT’S TOO EXPENSIVE THE CONSUMER WILL SAY I’M NOT GOING TO AFFORD THAT PRODUCT, I CAN’T AFFORD IT OR I CHOOSE NOT TO BUY THAT PRODUCT ANYMORE. RIGHT NOW, IN THE CURRENT ENVIRONMENT, WHEN YOU ONLY HAVE A FEW FEW COMPANIES THAT ARE THAT ARE WILLING TO WRITE BUSINESS, IT CERTAINLY SEEMS LIKE A GOOD THING. BUT AGAIN, THE LONG TERME EFFECT IS THAT IT IS DISCOURAGING COMPANIES FROM COMING BACK TO LOUISIANA. AGAIN. IT YOU AND I. AS CONSUMERS, WE WANT CHOICE AND RIGHT NOW WE DON’T HAVE CHOICE. YOU KNOW, WE JUST WANT TO SET THE CONDITIONS SO THAT COMPANIES FEEL LIKE THEY’RE GOING TO BE TREATED FAIRLY, THAT THEY GET TO MANAGE THEIR BOOK OF BUSINESS, THAT THEY GET TO DEPLOY THEIR CAPITAL WHERE THEY SEE FIT, JUST LIKE THEY GET TO DO IN TEXAS AND MISSISSIPPI AND ALABAMA AND FLORIDA AND ALL THE OTHER STATES IN AMERICA. WE JUST NEED TO MAKE SURE THAT WE’RE WE AREN’T JUST COMPETING FOR CAPITAL TO COME IN. WE’RE COMPETING AGAINST THOSE OTHER STATES. BECAUSE THOSE INSURANCE COMPANIES GET TO PICK WHEREVER THEY WANT TO GO, DO BUSINESS. AND SO WE WANT TO MAKE SURE THAT LOUISIANA IS A STATE WHERE THEY SAY, I GET TREATED FAIRLY. THE REGULATIONS. ARE, YOU KNOW, ARE FAIR AND JUST AND AND THAT’S WHERE I WANT TO GO AND DO BUSINESS. WHAT DID YOU SAY? LOUISIANA IS ALREADY A TOUGH MARKET FOR INSURANCE COMPANIES TO DO BUSINESS ANYWAY BECAUSE ESPECIALLY US IN THE SOUTHEAST LOUISIANA AREA, IN THE NEW ORLEANS AND COASTAL AREAS, WE HAVE A LOT OF NATURAL DISASTERS, HURRICANES, AND WITH CLIMATE CHANGE, WOULD YOU SAY IT’S ALREADY A DIFFICULT PLACE TO GET INSURANCE COMPANIES TO COME AND DO BUSINESS? WELL, LOOK, WE CERTAINLY HAVE EXPOSURE TO HURRICANES IN LOUISIANA, BUT AND THAT’S WHY IT’S IMPORTANT TO DO THINGS LIKE THE FORTIFIED ROOF PROGRAM. YOU KNOW, IT IS IMPORTANT THAT WE MITIGATE. THE RISK AS BEST WE CAN AS A AS A CONSUMER, YOU DON’T WANT TO MAKE YOUR HOME MORE SUSCEPTIBLE TO STORMS. YOU WANT TO. MAKE SURE THAT IT’S IT’S AN ATTRACTIVE PROPERTY FOR THE INSURANCE COMPANY TO COME AND PLACE THEIR INSURANCE ON TOP OF IT. SO, YEAH, WE WANT TO MAKE SURE THAT WE PROMOTE AND ENCOURAGE STUFF BECAUSE LIKE I SAID, YOU KNOW, WE ARE WE HAVE A LARGE POPULATION IN PROXIMITY TO THE COAST. OTHER STATES HAVE OTHER ISSUES, AND THEY’RE CONSTANTLY MODIFYING ALABAMA COASTAL, YOU KNOW, THEIR COASTAL STATE. THEY’VE HAD A FORTIFIED ROOF PROGRAM IN PLACE FOR OVER A DECADE. THEY NOW HAVE 48, 45,000 FORTIFIED ROOFS. LOUISIANA. WE’VE JUST GOT A HANDFUL. WE NEED TO MAKE SURE THAT WE’RE PROMOTING, UM, YOU KNOW, HOMES THAT ARE ATTRACTIVE FOR INSURANCE COMPANIES TO COME AND, AND, AND, AND INSURE MISSISSIPPI. THEY JUST PASSED LEGISLATION IN MISSISSIPPI. THEY’RE CREATING A FORTIFIED ROOF PROGRAM. SO WE NEED TO CONTINUE. WE’RE AGAIN, WE’RE COMPETING AGAINST THOSE OTHER STATES. IF WE AREN’T BUILDING BETTER STRUCTURES AND OTHER STATES ARE, THEN IT MAKES THOSE INSURANCE COMPANIES WANT TO GO AND. INSURE THOSE PROPERTIES MORE THAN THEY DO HERE. I MEAN, THAT IS ONE POINT OF VIEW, AND I UNDERSTAND WHAT WHAT YOU’RE SAYING, THAT YOU WANT TO CREATE MORE COMPETITION. SO THAT WE HAVE MORE OPTIONS AS HOMEOWNERS TO PICK FROM COMPANIES. AND THAT WILL IN RETURN, LATER ON, HOPEFULLY DRIVE THE RATES DOWN. BUT WHAT IS YOUR RESPONSE TO PEOPLE WHO SAY THIS? THIS IS FROM REAL REFORM. LOUISIANA TO THEY SAID, QUOTE, TEMPLE DID NOT PROPOSE A SINGLE REFORM THAT STRENGTHENS PROTECTIONS FOR FAMILIES. WHAT IS YOUR RESPONSE TO PEOPLE WHO MAY SAY THAT? WELL, YOU KNOW, IT’S INTERESTING THAT REAL REFORM HAS YET TO OFFER ANY REFORM. THEY’RE VERY GOOD AT SAYING NO TO EVERYTHING THAT’S PROPOSED. WHAT WE’RE PROPOSING IN THE LEGISLATURE, THE PACKAGE THAT I’M PROMOTING AND ASKING LEGISLATORS FOR IS DESIGNED TO ENCOURAGE THAT COMPETITION AND COMPETITION IS CONSUMER PROTECTION. IF YOU DON’T LIKE THE INSURANCE COMPANY YOU’RE WITH, IF IT’S TOO EXPENSIVE AND YOU HAVE SEVEN OTHER INSURANCE COMPANIES, YOU CAN GET A QUOTE FROM, THAT’S COMPETITION THAT HELPS PROTECT THE CONSUMER. RIGHT NOW THAT DOESN’T TAKE PLACE. AND, YOU KNOW, I KNOW BEN RIGGS, YOU KNOW, WE TALK OFTEN AT THE CAPITOL. AND LOOK, I THINK HIS HEART’S IN THE RIGHT SPOT. I DON’T THINK HE UNDERSTANDS INSURANCE, BUT DO YOU UNDERSTAND WHERE THEY’RE COMING FROM? OR DO YOU UNDERSTAND WHY HOMEOWNERS MAY FEEL LIKE SOME OF THEIR PROTECTION PROTECTIONS ARE BEING TAKEN AWAY? WELL, YOU KNOW, YOU GET THAT. NO, I DO, AND I AND I’LL TELL YOU THIS, YOU KNOW, LIKE I SAID EARLIER, YOU KNOW, WE GET WE GET PHONE CALLS AND EMAILS CONSTANTLY OF PEOPLE SAYING THAT THEY CANNOT AFFORD THE INSURANCE THEY HAVE. I HAVEN’T GOTTEN ANY EMAILS. I HAVEN’T GOTTEN ANY PHONE CALLS. I’VE NOT HAD ONE CONSUMER COME AND TELL ME THAT THEY’RE LEAVING THE STATE, OR THAT THEY’RE NOT BUYING INSURANCE BECAUSE THEY THINK THAT THEIR CONSUMER PROTECTIONS ARE BEING TAKEN AWAY FROM THEM. WELL, LOOK, YOU KNOW, WE’RE WE ARE PROMOTING, UM, WITH REGARDS TO AUTO. WE HAVE COLLATERAL BILL TO ADDRESS COLLATERAL SOURCE, WHICH HAS BEEN A BIG PROBLEM IN LOUISIANA FOR MANY YEARS. DIRECT ACTION IS ANOTHER BILL DESIGNED TO HELP REBALANCE THE AUTO CRISIS THAT WE’RE HAVING. BUT I THINK SPECIFICALLY TO TO YOUR VIEWERS, UH, YOU KNOW, HOMEOWNERS SEEMS TO BE THE ONE THAT MOST EVERYBODY TALKS ABOUT WHERE WE’VE GOT A BILL THAT IS PROMOTING AND ENCOURAGING A FAIR CLAIMS PRACTICE, UH, TO BRING BACK IN BALANCE AND HELP THE CONSUMER AND THE INSURANCE INDUSTRY UNDERSTAND WHAT THE RULES ARE, UNDERSTAND WHEN A CLAIM STARTS, HOW LONG THEY HAVE TO GET A, YOU KNOW, A FAIR PAYMENT TO, TO THE INSURER TO, TO THE CLAIMANT. WHAT CONSTITUTES WHEN THERE’S A BREACH OF THAT AND ALSO A CURE PERIOD. BECAUSE A LOT OF TIMES CONSUMER AKERS FEEL THAT THEY’VE, YOU KNOW, THEY NEED TO LITIGATE IT. AND RIGHT BEFORE THEY DO, WE’RE PROPOSING A CURE, PERIOD, WHERE THE CONSUMER IN THE INSURANCE COMPANY CAN COME TOGETHER, HAVE ONE LAST CHANCE TO TRY AND FIX WHATEVER ISSUES THEY’RE HAVING BEFORE THE CONSUMER FEELS THAT THEY HAVE TO LITIGATE FILE LITIGATION. SO THESE ARE ALL, AGAIN, THOSE ARE CONSUMER PROTECTION. IF YOU UNDERSTAND WHAT THE RULES ARE. AND THE INSURANCE COMPANY CLEARLY UNDERSTANDS WHAT THE RULES ARE, IT HELPS HAVE A BETTER CLAIMS EXPERIENCE. AND THAT IS CONSUMER PROTECTION. YEAH. DO YOU THINK IT’S TIME FOR MAYBE AN INSURANCE OVERHAUL JUST NATIONALLY BECAUSE IT’S A NATIONAL ISSUE? WE’RE NOT THE ONLY ONES DEALING WITH AN INSURANCE CRISIS. WHAT ARE YOUR THOUGHTS ABOUT MAYBE AN OVERHAUL OF THE INSURANCE INDUSTRY? WELL, LOOK, WE HAVE A NATIONAL PROGRAM RIGHT NOW IN THE NFIP, AND I DON’T THINK ANYONE WOULD AGREE THAT THAT’S WORKING THE WAY IT’S THAT THEY WANT IT TO. SO I’M NOT A PROPONENT OF A OF A FEDERAL PROGRAM. I THINK THAT THE FREE MARKET CAN WORK AND LOOK EACH STATE HAS A UNIQUE RISK. I DON’T THINK THAT WE CAN JUST LUMP EVERYBODY TOGETHER AND CREATE SOME TYPE OF NATIONALIZED PROGRAM. I DO THINK WE NEED TO HAVE CONVERSATIONS AND SEE IF THERE IS SOME OTHER TYPE OF PRODUCT THAT THAT MAKES SENSE, BUT RIGHT NOW, YOU KNOW, IN LOUISIANA, WE NEED TO FOCUS AND MAKE SURE THAT WE’RE PROMOTING HEALTHY, STRONG, SAFE STRUCTURES AND THAT WE’RE CREATING A COMPETITIVE ENVIRONMENT WHERE INSURANCE COMPANIES ARE TREATED THE SAME WAY IN LOUISIANA AS THEY ARE IN OTHER STATES, WHICH, AGAIN, THE CONSUMER BENEFITS FROM. WHAT WHAT DO YOU WANT TO SAY TO ALL THE HOMEOWNERS AND PROPERTY OWNERS OUT THERE WHO ARE DESPERATE, WHO ARE STRUGGLING EVERY DAY TO MAKE ENDS MEET? SOME OF THEM ARE ON FIXED INCOME AND CAN NO LONGER AFFORD THEIR MONTHLY MORTGAGE. WHAT, WHAT WHAT’S YOUR MESSAGE TO THEM? WELL, LOOK, I CERTAINLY UNDERSTAND THAT THE STRUGGLE IS REAL FOR MANY FAMILIES AND MANY BUSINESSES IN LOUISIANA FOR, YOU KNOW, PEOPLE ARE MAKING ARE BEING FORCED TO MAKE SOME HARD CHOICES DUE TO FINANCIAL STRESS. AND THAT IS THAT IS WHAT, YOU KNOW, I GET OUT OF BED IN THE MORNING AND I COME TO THIS OFFICE AND I WORK. I GO OVER TO THE CAPITOL AND WORK EVERY DAY TO TRY AND MAKE A POSITIVE CHANGE SO THAT AS CONSUMERS, COMPANIES COME BACK INTO LOUISIANA AND WE GET THE CHOICE THAT WE ONCE HAD, YOU KNOW, I CAN’T PASS A LAW THAT ORDERS INSURANCE COMPANIES TO TO LOWER THEIR RATES AS REGULATOR. I CAN’T TELL COMPANIES TO LOWER THEIR RATES IF IF WE TRY THAT, THEY WILL. THE ONES THAT ARE LEFT WILL LEAVE THIS STATE. WE HAVE TO FOCUS ON CREATING AN ENVIRONMENT THAT COMPANIES FEEL THAT THEY CAN COME IN, BE TREATED FAIRLY AND AT THE SAME TIME TAKE CARE OF THE CONSUMER WHEN THEY HAVE A LEGITIMATE CLAIM. THAT’S WHAT MY FOCUS IS. AND THE SOONER THAT WE CAN ENACT THOSE CHANGES, THE SOONER THE