Gov. Jeff Landry testified before the House Insurance Committee Wednesday morning in support of HB 576,which would prohibit excessive, inadequate, or unfairly discriminatory insurance rates.
Insurance Commissioner Tim Temple said he already has the power to reject excessive rate increases when the market is not competitive. This bill allows him to do so when it is.
“Giving the commissioner the authority to subjectively find a rate excessive in a competitive market would open the door for undue manipulation of the market, which discourages insurers from doing business here and allows the commissioner to exercise unchecked power,” said Temple.
“I've never seen a politician not want more power. You just never have,” Landry said when asked why he thinks Temple opposes the legislation.
Pundits say Landry is trying to get a win after the four constitutional amendments on the March ballot failed. And if this bill passes, the governor can blame insurance rates on the commissioner.
Temple said he’s heard the same story.
“Is he trying to pivot? I don't know. But look, irrespective of that, I want to work with the governor because if he and I can get on the same page on solutions, we all benefit,” said Temple.
Committee member Rep. Matthew Williard (D–New Orleans), questioned why the commissioner would oppose having more authority.
“I would think that any insurance commissioner would like to have more support in order to deem rates being excessive to the people whom they represent,” said Willard. “So for me, I thought that that bill by Robbie Carter is a great bill and I think that if the insurance commissioner does not want that authority to, you know, determine if rates are excessive, then the people of Louisiana need to take a hard look at the insurance commissioner.”
When asked if he thinks the governor needed a victory after the four amendments failed, Willard stated he believes that the voter turnout in last month’s election should be a wake up call for every lawmaker.
“As elected officials, we need to take heed when the people whom we represent send us messages. And so I'm looking forward to trying to stand up for the people of Louisiana who just sent us those messages, because there definitely is an effort to bring those amendments back to a vote of the people,” said Willard.
The bill passed 13-4 and advanced to the House.
