You would think that the high cost of auto insurance is so controversial in Louisiana that its public officials would be working together for solutions. Unfortunately, it doesn’t appear to be happening.

The Advocate called the current situation “a high-stakes legal and political battle between Gov. Jeff Landry and Insurance Commissioner Tim Temple.”

Landry stole a President Donald Trump tactic when he told members of the House Insurance Committee that House Bill 576 is so important to him that he would call legislators into a special session to consider it again if they rejected the measure.

The committee then overwhelmingly passed the bill that would allow Temple to reject excessive rate increases for car insurance. Temple told the committee the legislation would ultimately harm the state.

Under current law, the commissioner approves rate increases after a staffer has reviewed the data from insurance companies and found the proposed increase to be mathematically sound. Under HB 576, the commissioner could simply decide that the proposed rate increase was excessive and deny it.

Landry said the commissioner needs that authority to stop insurance companies from continuing to raise rates. Temple said giving the commissioner the authority to rebuff rate increases without basing the decision on data would discourage companies from wanting to do business in Louisiana.

Consumers would be the losers, Temple said, adding that he has already refused to approve 40 rate increases.

Landry said lawmakers have passed a number of bills in recent years at the request of insurance companies to lower rates.

“We have been asked to trust them,” Landry said. “But we have no ability to hold them accountable if they lie. Insurance companies continue to report record profits while our rates continue to rise. It’s frustrating our citizens.”

Temple blames high insurance rates on a legal system that he says allows too many lawsuits and big payouts for injured drivers and their attorneys. He thinks fewer restrictions on insurance companies and restrictions on the legal rights of trial lawyers would make more companies want to come to Louisiana to operate.

That is already happening with property insurance, Temple said. He added that eight insurers have filed for lower rates this year.

The Advocate brought up an interesting sidelight to the committee’s insurance debate. It said eight of Landry’s aides were in the small committee room while the governor spoke in favor of the bill. Insurance company lobbyists took many of the other seats in the room and they sided with Temple when it came time for them to speak.

The newspaper said freshmen Republican legislators have been holding hearings for months to find auto insurance solutions and most of their bills align with the insurance industry.

Seven Democrats and six of the committee’s 10 Republicans voted for HB 576. Four Republicans were opposed.

Rep. John Illig of Metairie, one of the four, said, “A number of us had questions about what we were trying to accomplish and whether it really moved the needle.”

Landry and Temple did finally get together at the governor’s mansion and both said they had a cordial discussion.

“We both want the same goal, which is for citizens and businesses to have lower insurance,” Temple said. “We just have a little bit different perspective on how to get there.”

Landry was asked after the hearing what would happen if the bill finally passed the Legislature and Temple didn’t stop the continued rise in insurance rates.

“The people could hold him accountable,” the governor said. Landry said the same thing during a radio interview.

Temple said, “I don’t know if he really intended that. But he said it.”

Many other auto insurance bills will be debated during the session and we will get a better idea of where Landry and Temple really stand. Landry did get considerable financial support from trial lawyers when he ran for governor and Temple was president of a family-owned insurance company.

Any state official or legislator who doesn’t believe the extremely high cost of auto insurance is the highest concern of Louisiana citizens is going to have a tough time when they run for re-election if they don’t come up with solutions that lower those costs.

By the way, ‘at their wits’ end’ means to be so worried, confused, or annoyed that one doesn’t know what to do next.

Jim Beam, the retired editor of the American Press, has covered people and politics for more than six decades. Contact him at 337-515-8871 or jim.beam.press@gmail.com.

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