So who says insurance companies have to know enough about money to their bank accounts?

C.B. Forgotston
April 11, 2007 at 1:38 pm  | Mobile Reader | Pring this storyPrint 

A member of the "Crack Mullet Research Team" has raised an interesting issue.

On January 17, the Louisiana Citizens Property Insurance Corp, the state-run property insurance program, was granted a huge rate increase by the LA Insurance Rating Commission.

Present at the meeting were LIRC members Barry Busada, Joe Godchaux, Jr., Jabari Ragas, Steven Ruiz, and Deputy Commissioner Chad Brown who represented Commissioner James Donelon.

It should be noted that Mr. Brown is also the chairman of Citizens' board.

The researcher questioned on what basis the LIRC granted the massive increase in rates while at the same time Citizens could not access its financial records to determine if it was making money or losing money and had not even balanced its bank accounts.

How can an actuary calculate loss ratios and the need for rate increases when the correct income and expense information isnt even available?

Makes one wonder how all the private insurance companies' rates are calculated.

What do you think? Write editor@heraldguide.com




View other articles written C.B. Forgotston

featured merchant

Landry's Outboard Motors & Repairs Service
Landry's Outboard Motors & Repairs Service Over 25 Years of Quality Sales, Service and Repairs on YAMAHA, MERCURY, EVINRUDE and JOHNSON Motors.

Construction begins on I-310 project
Construction begins on I-310 project
- 1444 views
Massana Construction has started work on a $609,155 project to install about three miles of median cable barriers along Interstate 310 in Luling.

Become A Herald-Guide Insider

Get breaking news, sports and lifestyles straight to your inbox