EXECUTIVE ORDER MJF 96-15

Task Force for the Reduction of Automobile Insurance Rates


WHEREAS: the citizens of Louisiana pay a higher percentage of their earnings for automobile insurance than do citizens of any other state;

WHEREAS: the Louisiana Legislature has made several good-faith attempts to address the state's automobile insurance rate crisis, all without success;

WHEREAS: many factors contribute to the escalating cost of automobile insurance rates, all of which must be examined so that a dramatic reduction in automobile insurance rates may be achieved; and

WHEREAS: the need to rectify Louisiana's burgeoning automobile insurance problem necessitates that a task force be established to research and analyze the factors contributing to Louisiana's high automobile insurance rates and to develop a comprehensive and actuarially-sound plan to reduce the automobile insurance rates;

NOW THEREFORE I, M.J. "MIKE" FOSTER, JR., Governor of the State of Louisiana, by virtue of the Constitution and the laws of the State of Louisiana, do hereby create and establish the Louisiana Task Force for the Reduction of Automobile Insurance Rates, which shall be domiciled within the Department of Insurance, and do hereby order and direct as follows:

SECTION 1: The Louisiana Task Force for the Reduction of Automobile Insurance Rates (hereafter "task force") is established to research and analyze the factors which contribute to the escalating automobile insurance rates in this state and to develop a comprehensive, detailed and actuarially-sound plan which will cause dramatic reduction of automobile insurance rates in this state. The task force shall prepare and submit a plan to both houses of the Louisiana Legislature, for their review, no later than February 17, 1997.

SECTION 2: The task force shall consist of 16 members who shall be appointed by the governor.

SECTION 3: Ten members of the task force shall be appointed by the governor from lists of nominees submitted by specified organizations, as follows:

  • a. one member appointed from a list of nominees submitted by the Louisiana Trial Lawyers Association;

  • b. two members appointed from a list of nominees submitted by the following organizations: Professional Insurance Agents of Louisiana, Inc.; Independent Insurance Agents; Louisiana Association of Life Underwriters; and the National Independent Insurance Agents Association;

  • c. one member appointed from a list of nominees submitted by the Louisiana Medical Society;

  • d. one member appointed from a list of nominees submitted by the insurer writing mutual property and casualty automobile insurance in Louisiana, which had the highest earned premium volume as reported in the insurer's 1995 Annual Statement filed with the Department of Insurance;

  • e. one member appointed from a list of nominees submitted by the insurer writing stock property and casualty automobile insurance in Louisiana, which had the highest earned premium volume as reported in the insurer's 1995 Annual Statement filed with the Department of Insurance;

  • f. one member appointed from a list of nominees submitted by the insurer writing domestic property and casualty automobile insurance in Louisiana, which had the highest earned premium volume as reported in the insurer's 1995 Annual Statement filed with the Department of Insurance;

  • g. one member appointed from a list of nominees submitted by the insurer writing personal lines package policies in Louisiana, which had the highest earned premium volume as reported in the insurer's 1995 Annual Statement filed with the Department of Insurance;

  • h. one member appointed from a list of nominees submitted by Louisiana Association of Fire and Casualty Insurance Companies;

  • i. one member appointed from a list on nominees submitted by Louisiana based consumer organizations.

  • In the event that any of the foregoing organizations or groups of organizations either fail to submit a list of nominees or fail to submit any nominations which are acceptable to the governor, then the governor shall appoint a member without regard to the nomination requirement.

    SECTION 4: the six remaining members of the task force shall be the commissioner of insurance; the governor or his designee; the president of the Senate or a member of the Senate designated by the president; the speaker of the House of Representatives or a member of the House of Representatives designated by the speaker; and the superintendent of the Department of Public Safety or the superintendents's designee; one at-large member appointed by the governor.

    SECTION 5: The governor shall appoint a member to serve as chairman of the task force.

    SECTION 6: Task force members shall not receive compensation, nor shall they be reimbursed for travel expenses or per diem expenses for their attendance at meetings.

    SECTION 7: Support staff for the task force and facilities for their meetings shall be provided by the Department of Insurance.

    SECTION 8: the provisions of this order are effective upon signature and shall remain in effect until amended, modified, or rescinded by operation of law.

    IN WITNESS WHEREOF, I have set my hand officially and caused to be affixed the Great Seal of the State of Louisiana, at the Capitol, in the City of Baton Rouge, on this 13th day of June, 1996.

    M.J. "Mike" Foster, Jr.
    Governor

    ATTEST BY
    THE GOVERNOR
    Fox McKeithen
    Secretary of State