3 things to know about Tim Temple’s approach to Louisiana insurance crisis
Why rates are climbing, and coverage is diminishing
To fairly judge Temple's proposals, it is important to understand the problem. Property insurers universally cite extreme weather as the reason they are ceasing to write policies in risk-prone regions, excluding coverage for specific weather events, and increasing premiums and deductibles.
Temple's remedy is worse than the disease
Temple is pushing an anti-consumer agenda that will strip policyholders of their rights and result in higher costs and less availability for
abolish or weaken the three-year rule, a consumer protection that prevents big insurers from dropping policyholders after three years. This measure would force even more
gut bad-faith laws, making it easier for insurers to delay and deny claims and nearly impossible for storm victims to hold big insurance companies accountable.
allow insurance companies to raise rates more often, which
permit big insurers to cherry-pick where they write policies, leading to coverage gaps and an explosion of expensive policies written by the state's insurer of last resort.
Temple's proposed agenda hurts consumers and fails to address insurers' concerns about the risks posed by extreme weather. As a result, his plan will not attract new insurers, increase competition or lower costs. Temple's agenda benefits insurance companies already writing policies in the state at the expense of
Again, extreme weather is driving
To address the crisis,
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