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Louisiana has one of the worst insurance regulatory environments in the nation. That is according to Washington-based conservative think tank R Street Institute in its 2017 Insurance Regulation Report Card just issued. And no, it’s not because of the trial lawyers or the big insurance companies.
The blame is laid directly on the Louisiana legislature. In ranking states across the country, Louisiana was given an F.
Florida, on the other hand, which has much more hurricane exposure than Louisiana, has made a huge leap toward ranking as a top regulatory state.
The comparison between Louisiana and Florida is stark and troubling.
The words “homeowners insurance” has nary been given a mention during past Louisiana legislative sessions.
Affordable insurance to cover one’s property has been the single biggest detriment for rebuilding in south Louisiana.
And yet there has not been one creative idea put on the table by legislators. In Florida, finding ways to reduce the cost of basic home insurance has been the front burner issue for months.
The R Street report finds: “It is in recognition of these improvements that Florida, which was the bottom-ranked state in our first report card in 2012, has clawed its way to a very respectable B grade for 2017.” So Florida, with much more property damage exposure, gets a B, and Louisiana gets an F.
Florida has approved sweeping property insurance changes that have been touted in the state press as a “homeowner’s Bill of Rights.” The changes in Florida are directly opposite from the direction being taken in Louisiana. Florida legislation holds insurance companies to a much higher degree of accountability when it comes to antitrust laws and violating a litany of other state laws.
Insurers are now required to get state approval before raising property insurance rates, and are prohibited from using arbitration panels when there is a disagreement with property owners.
Rates charged to those who purchased Florida Citizens Property insurance have been frozen, and can never be higher than competing company rates.
All these changes fly in the face of the insurance company favoritism that dominates both the Louisiana insurance department and the Louisiana legislature.
Florida has also put in place a series of strong consumer laws with an insurance advocate uncontrolled by the insurance department. In Louisiana, efforts to create a separate insurance consumer advocate, independent of the insurance department, has met a chilly reception by legislators, who allowed (perhaps tongue in cheek?) for such an office to be created in the insurance department itself.
The fox guarding the hen house?
The comparisons between the Florida Citizens Insurance Corp. and a similar company set up by Louisiana are striking.
Florida initially set up its company by doing what any normal business would do.
Capital and surplus were put in place of over $700 million, and reinsurance in the private European market was obtained to protect the Citizens plan in case there were major losses. And there were adequate professionals hired to run the company on a daily basis.
Louisiana did none of the above. From the day the Louisiana company was created by the insurance department and the Legislature, Louisiana Citizens Property Insurance Corp. was a disaster waiting to happen.
We have read about the incompetent management and the rip-offs of millions of dollars in illegal spending.
The state-run company waited often years to file financial statements or balance their checkbooks. Not one dollar was allocated to the new start up company created by the legislature. Is there any business that can start from scratch without having any money in the bank?
And if the failure to not adequately build in safeguards by Louisiana Citizens and the Louisiana Insurance Department officials who were running the company was not bad enough, the decision not to buy adequate reinsurance has turned out to be the biggest single financial disaster in Louisiana’s history.
Louisiana taxpayers will spend the next 20 years paying off the bonds that were sold to cover the losses, now well over $1 billion.
Louisiana and Florida have been two troubled states when it comes to affordable insurance, and each is taking a dramatically different direction.
Right now, it looks like Louisiana, made the wrong turn in the fork of the road.

“It’s not hurricanes that are causing high insurance rates, but bad government policy,”
— Policy analyst Michelle Minton
Peace and Justice
Jim Brown
Jim Brown’s syndicated column appears each week in numerous newspapers throughout the nation and on websites worldwide. You can read all of his columns at www.jimbrownusa.com.

WASHINGTON (AP) — A chartered train carrying dozens of GOP lawmakers to a Republican retreat in West Virginia struck a garbage truck south of Charlottesville, Virginia, on Wednesday. No lawmakers were believed injured, but it at least one person in the truck was said to be seriously injured.
“We’re fine, but our train hit a garbage truck. Members with medical training are assisting the drivers of the truck,” Rep. Greg Walden, R-Ore., wrote on Twitter.
A GOP aide said the train is partially derailed.
U.S. Sen. Bill Cassidy, R-Baton Rouge, and his wife were aboard the train. In a tweet, he said it was “a scary moment” but that they were both OK.
U.S. Rep. Clay Higgins, R-Port Barre, who represents St. Mary in Congress, was driving separately to the retreat and was not on the train. He is safe, according to a tweet from Rep. Randy Weber, R-Texas.
Sen. John Kennedy tweeted that he was not on the train and was praying for those involved.
Rep. Steve Scalise also tweeted that he was not on the train and that members of his staff who were onboard were all safe. Rep. Ralph Abraham was also not on the train.
It was not immediately clear whether the other members of Louisiana’s congressional delegation were on the train.

The phrase “death cleaning” may sound jarring to unaccustomed ears, but the concept makes sense. It’s about getting rid of excess rather than leaving a mess for your heirs to sort out.
“Death cleaning” is the literal translation of the Swedish word dostadning, which means an uncluttering process that begins as people age. It’s popularized in the new book “The Gentle Art of Swedish Death Cleaning” by Margareta Magnu-sson.
Magnusson focuses on jettisoning stuff, but most older people’s finances could use a good death cleaning as well. Simplifying and organizing our financial lives can make things easier for us while we’re alive and for our survivors when we’re not.
This task becomes more urgent when we’re in our 50s. Our financial decision-making abilities generally peak around age 53, researchers have found, while rates of cognitive decline and dementia start to climb at age 60. As we age, we tend to become more vulnerable to fraud, scams, unethical advisers and bad judgment, says financial literacy expert Lewis Mandell, author of “What to Do When I Get Stupid.” Cleaning up our finances can help protect us.
Some steps to take:
CONSOLIDATE FINANCIAL ACCOUNTS
Fewer accounts are easier to monitor for suspicious transactions and overlapping investments, plus you may save money on account fees. Your employer may allow you to transfer old 401(k) and IRA accounts into its plan, or you can consolidate them into one IRA. For simplicity, consider swapping individual stocks and bonds for professionally managed mutual funds or exchange-traded funds (but check with a tax pro before you sell any investments held outside retirement funds). Move scattered bank accounts under one roof, but keep in mind that FDIC insurance is generally limited to $250,000 per depositor per institution.
AUTOMATE PAYMENTS
Memory lapses can lead to missed payments, late fees and credit score damage, which can in turn drive up the cost of borrowing and insurance. You can set up regular recurring payments in your bank’s bill payment system, have other bills charged to a credit card and set up an automatic payment so the card balance is paid in full each month. Head off bounced-transaction fees with true overdraft protection, which taps a line of credit or a savings account to pay over-limit transactions.
PRUNE CREDIT CARDS
Certified financial planner Carolyn McClanahan in Jacks-onville, Florida, recommends her older clients keep just two credit cards: one for everyday purchases and another for automatic bill payments. Closing accounts can hurt credit scores, though, so wait until you’re reasonably sure you won’t need to apply for a loan before you start dramatically pruning.
SET UP A WATCHDOG
Identify whom you want making decisions for you if you’re incapacitated. Use software or a lawyer to create two durable powers of attorney — one for finances, one for health care. You don’t have to name the same person in both, but do name backups in case your original choice can’t serve.
Consider naming someone younger, because someone your age or older could become impaired at the same time you do, says Carolyn Rosenblatt, an elder-law attorney in San Rafael, California, who runs AgingParents.com. Grant online access to your accounts, or at least talk about where your trusted person can find the information she’ll need, Rosenblatt recommends.
Also create “in case of emergency” files that your trusted person or heirs will need. These might include:
—Your will or living trust,
—Medical directives, powers of attorney, living wills,
—Birth, death and marriage certificates,
—Military records,
—Social Security cards,
—Car titles, property deeds and other ownership documents,
—Insurance policies,
—A list of your financial accounts,
—Contact information for your attorney tax pro, financial adviser and insurance agent,
—Photocopies of passports, driver’s licenses and credit cards.
A safe deposit box is not the best repository, because your trusted person may need access outside bank hours. A fireproof safe bolted to a floor in your home, or at minimum a locked file cabinet, may be better, as long as you share the combination or key (or its location) with your trusted person. Scanning paperwork and keeping an encrypted copy in the cloud could help you or someone else recreate your financial life if the originals are lost or destroyed.
—This column was provided to The Associated Press by the personal finance website NerdWallet. Liz Weston is a columnist at NerdWallet, a certified financial planner and author of “Your Credit Score.”

A 32-year-old Morgan City man was booked Tuesday on several warrants including one for allegedly having a large amount of synthetic marijuana, Morgan City Police Chief James Blair said in a news release.

—Vernon J. Robinson Jr., 32, of Chennault Street in Morgan City, was arrested at 10:30 a.m. Tuesday on warrants charging him with possession of synthetic marijuana with intent to distribute, driving under suspension, open container in a motor vehicle and possession of marijuana.

Robinson was located and arrested in the area of Belanger Street on active warrants. The first warrant stems from an Oct. 14, 2017, investigation when Robinson was in possession of a large amount of synthetic marijuana, Blair said.

The investigation continued and warrants were prepared for his arrest. The second warrant stems from a Dec. 27, 2017, investigation when Robinson was seen operating a vehicle in the area of Federal Avenue, and Robinson had a suspended driver’s license, Blair said.

Police initiated a stop, and Robinson fled on foot. Suspected marijuana and an open container were located in the vehicle and linked to Robinson, Blair said.

The investigation continued and warrants were prepared for Robinson’s arrest. Robinson was jailed.

Blair reported that officers responded to 20 calls and reported the following arrests:

—Rusty J. Allen, 39, of Copper Road in New Iberia, was arrested at 3:29 p.m. Tuesday on charges of driving under suspension and speeding 29 mph in a 15 mph zone.

Patrol officers observed a vehicle traveling through a school zone area at 29 mph in a 15 mph zone. A stop was initiated, and Allen, the driver, had a suspended driver’s license, Blair said. Allen was jailed.

—Joshua Acosta, 21, of Federal Avenue in Morgan City, was arrested at 8:25 p.m. Tuesday on a fugitive charge.

Acosta was located and arrested in the area of Federal Avenue on an active warrant held by the St. Bernard Parish Sheriff’s Office. Acosta was transported to the Morgan City jail.

St. Mary Parish Sheriff Scott Anslum reported that deputies responded to 37 complaints in the parish and reported the following arrests in east St. Mary Parish:

—Kenneth Scott III, 19, of Riverview Drive in Berwick, was arrested at 11:13 a.m. Tuesday on a warrant for failure to appear on the charges of direct contempt of court, speeding and failure to honor written promise to appear.

A deputy responding to a call for service at a home in the Patterson area made contact with Scott and located the active warrant for his arrest. The deputy transported Scott to parish jail with bail set at $380.

—Joey Francois, 37, of Mallard Street in Morgan City, was arrested at 4:14 p.m. Tuesday on a warrant for failure to appear on charges of operating a vehicle with a suspended driver’s license and operating a vehicle not covered by security.

Francois was already incarcerated at parish jail when a correctional deputy located an active warrant. No bail is set on the warrant.

Patterson Police Chief Patrick LaSalle reported the following arrests:

—Ethan Mensman, 20, of Riverview Drive in Patterson, was arrested at 9:31 a.m. Tuesday on a St. Mary Parish Sheriff’s Office warrant charging him with failure to appear for possession of marijuana and improper lane usage. Bail was set at $2,500.

—Shamus Dardeau, 42, of Clark Road in Morgan City, was arrested at 12:25 p.m. Tuesday on a warrant charging him with theft by shoplifting. Bail was set at $373.

—Agatha M. McCleary, 25, of Tiffany Street in Patterson, was arrested at 10:41 a.m. Tuesday on a warrant charging her with failure to appear for leash law violation. McCleary posted $585 bail.

Berwick Police Chief James Richard reported no arrests.