[StBernard] Governor Blanco: "Rate relief is on the way!"

[Westley Annis]

Governor Blanco: "Rate relief is on the way!" 


Governor's remarks regarding insurance rate relief 

We need insurance rate relief and we need it now! Last year's 15% assessment that caused a one-time rate hike blew a hole in the pocketbooks of our citizens. That bombshell added insult to injury. This was a bull's eye hit to personal finances in a year of unprecedented suffering. Today I promise real relief to our people in the form of money in the bank. We're going to refund every penny of that 15% rate spike to the people of this state. 

What does this mean for the average policy holder who paid the hike? It means you can expect a check reimbursing you for this one-time assessment after the first of the year. 

For example, a policyholder with a $1,000 dollar a year policy who experiences the increase can expect a check in the ballpark of $100 to $150 dollars. I've called on the Department of Revenue to issue these checks. 

I'm not about to sit back and hope the insurance situation resolv:es itself. I'm acting on an aggressive plan that will refund, restore, and renew our push for affordability. 

Today I'm committing to refund the 15% increases in one-time checks to our people;

Next, I've pledged to restore affordability to the best of my ability. 

I've stated my intention to cover hundreds of millions of dollars of the Citizens dept obligation to drive rates down for the foreseeable future;

Finally, I've promised to renew our efforts to retain, attract and bring back insurance companies to Louisiana. 

Tomorrow, I'm meeting with the companies that insure Louisiana's insurance companies. I'm urging them to provide insurance companies the backup they need to continue operating in Louisiana. Stay tuned for an update on this effort. 

You may ask how we intend to finance this aggressive plan for rate relief. Here's my answer: 

I'm prepared to devote a significant portion of the surplus to rate relief. This comes on top of the $50 million already appropriated to the disaster fund. 

Next, I'm asking the legislature and the citizens of this state to help me expedite relief by selling the remaining tobacco settlement money. 

People have had their eyes on the tobacco settlement money for years. Several months ago, I received a call from the State Treasurer suggesting that we use the tobacco settlement to fund a housing program. I said, "Thanks, but no thanks." 

I was in the fight of my life with the White House to secure the federal funding we needed for our housing program. As I told the Treasurer, Mississippi had received full funding for housing from the feds, and I wanted no less. I was determined to secure the federal funding because I knew there would be other important uses for the tobacco settlement. This is one of them. 

I'm calling on the legislature and the people to adopt a Constitutional Amendment that will devote the additional tobacco settlement to fund the entire Citizens Debt obligation. Doing this will help to shore up long-term rate relief. 

Louisiana, rate relief is on the way! I urge the legislature to join with me. 
Together, we will move forward with this plan to refund, restore and renew affordable insurance to the people who need it most. 

Thank you. 

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