Well happy day to everybody. Hope you're having a good one and hope we can bypass the terrain even though looks little muggy out there that's okay. Stay in most of the radio we have three I think very interesting hours ahead. Our first is with Jim O'Donnell and very excited about that he's so kind periodically come in an update us on things. In particular. A report I read that I think will surprise any number of people. We're gonna get to that our second hour. Is going to be with Jon Barry and Jim Swanson both deeply involved in the lawsuit against oil and gas industry. And of course will be reflecting on the governor's signature on Friday. And then organ and the day with not a real controversy happening in the holy cross neighborhood. In my ever call that we had the holy cross group on as we do every neighborhood in the committee and the city just talking about the issues they face the good the bad the ugly. -- got to holy cross. There was a group that was a very concerned about the proposed development of the holy cross campus. Well this is not about the campus this is way beyond that this is about a major change. They fear too commercialized. Much of their neighborhood so we're going to have been men talking about that. But we begin with. Did you know there's a connection between your credit score. And what you pay for car insurance. In Louisiana of those auto rates can vary by 89%. Based on the credit scores. I have to tell you I was surprised. Argue. Leslie said we have insurance commissioner Jim O'Donnell in with this for the next hour to answer some questions we have about everything not just car insurance. Homeowners even health insurance and if you have any at all please give us a call 260187. Again that's 26018 -- -- he's always so gracious about taking calls so if you have any questions do not hesitate. We weren't. Not reading this article reading the study that was done. About the credit score from all the top. A 2014 study I don't know maybe I was just ignorant. But. Didn't know that and then to see that wheezing -- had such a big variance in the 89%. Has always been that the credit score -- used well. For as long as it's being in it as being used anywhere it has been used in the weeks via. To my knowledge every state uses it to some extent others more than. Salt and and the legislature. Back when I was a member passed what's called it in oil model law. Which is the only law on the books in our state in almost every other state. Relative to the use regulating the use of credit. The companies will tell you that the reason they use it is that it is a very accurate predictor. Of claims. And -- Monica right and that's the only reason they want to use it. Is they want to be able to differentiate between a good risk someone unlikely. To use a minor automobile accident as an opportunity. To cash in for 1520000. Dollars. Verses someone. In a more challenged. Situation. Who is more inclined to turn a accident in two litigation or they policy limits -- Well it was eye opening and again. Other states aren't that brought Maine and Vermont I think it's you know 14% or something -- and for us to be like 89%. Why the big difference that year. They probably written Vermont is the most liberal state in America and they probably have regulation. Relative to use. But most states would be like it's the overwhelming majority would be like I've looked at the analysis that mind. Chief actuary put together. And it absolutely. Corroborates what the study you that generated this this. Discussion here this morning has indicated and I would -- that. Not only is auto. Subject to being. Influenced by credits more homeowners motorcycle. Boats from all such insurance. Is influenced. By your credit score. In addition to that. I would also point out that ago. There all other factors that influence your score. Your of course should driving record whether you have that had at fault accidents or speeding tickets or do you dopey guys but also. Some companies and increasingly so while pricing your insurance should auto insurance on the amount of miles you -- If you're relatively older and in retard. And just struggle. A couple miles -- -- to distort. In Europe discount that's available for that is significant. Vs someone like myself who's all over the state put a lot of miles. On on on on my vehicle so while. There's a lot of factors and folks are not generally aware of all that goes into. The pricing of insurance and on my dead different companies. They called their black box. Use credit in different ways from one another. And they they share with us but they should they keep it as a proprietary. Secret if you will from each of and all the lives some put heavier weight than others and and the will study that my. Actuary. Did funny relative to homeowners and the use of of credit. Bears that out with the company's well the more aggressive. Writing companies having. Less of an influence from from credit than those companies that or. Pulling their horns in and retreating from coastal exposure not just in our state -- Haitian and but in all coastal states from Massachusetts to Miami in around to Mexico. Let me ask you that brings up the question I'm so thrilled we've got some callers I want to Bruce and he agreed to stay with -- but. Why isn't that let me correct it -- national right. Our insurance companies whoever they are far. Are they able to say were only gonna do homeowners were only gonna do so I don't. Why aren't saying my isn't mandated that have to sell all there were on the first. Questions that was asked post-Katrina. And before it was asked of us it was as soon. Folks in companies and regulators. In Florida and the reason is to -- noble one there was no authority. On in the in Louisiana or any other state to my knowledge for the regulator to say. I'm natural that you write homeowners if you are auto if you don't write homeowners I don't have that authority of one. Number two there's a moral question there. Why should a satisfied. Auto driver. In report. Be held hostage -- hole armed if you will. By having his company put out of the state because they won't write a homeowner policy in. Jefferson Parish it's. And equity situation there. And folks that what we -- spread the risk we want to -- company's suit to write auto. That they want that part of a -- market make them do the other part as well. There's so many aspects all of where they write all -- right where they don't write why they don't right there. That a one. Silver bullet. Fixing the problem just wall -- it's been suggested many times and early on. But it just won't work -- I would. Suggest to you that the real alternative. Is the small regional companies that have come into our market. Are pricing their products competitively with each other. And laying off their risk through the international reinsurance marketplace that's how we spread and every other state spreads there is substantial. -- -- -- Around the world and now even into the financial markets through something called. -- bonds catastrophe bonds that or a form of reinsurance. For small. Less capitalized companies wanting to do business in relatively high risk areas like dollars. Good explanation I have another question on that and Bruce and -- want you to stay with this. We're talking to Jim O'Donnell and will be right back -- -- under a bit of UN official guest Jim O'Donnell in our insurance commissioner answering questions. Before I go to the callers and I'll get you very very shortly I have a friend who. Recently bought a home trying to get home insurance this is a -- Very very difficult when we say very difficult. And finally found someone who says it will you're gonna have to bundle you're gonna have to give assure car insurance as well. She said fine then realized how much more they were charging than her original car insurance. She argued that what are you doing you know why does so much more well we have to spread or risk it was the same thing you address that question in Florida. And and by the way and I don't know I made that point before picketed. Homeowner's insurance is also impacted price wise by credit score. So. But yes that those almost holding hostage. -- in a very difficult market to find homeowner's insurance. To be -- like that doesn't seem fair well. I will say this that that crop if if if I had to guess that's an upscale property worth more than and 600 miles. I know you don't know what don't know. If you if you're in that market there are some very good companies competing for -- -- a new wind to our state is called pure. But fireman's -- been there hall law children insurance has been there upscale -- L properties. But sometimes. If the property it's worth the million books you'll do just property. If it's not sometimes they'll say is if your premiums. Combined for your umbrella. -- -- -- Ought to those and home get to a below 20000 miles a year and will write shoot even if your home is only worth. Only -- I have for me wrong enemy. All of Los Angeles it really is complicated challenging. And expensive. And necessary so folks really need to seek professional help in making these decisions in shopping. For the best deal for them. With this knowledge and when I made my change in my homeowner's policy three years ago. NC 600 miles -- marked by making that change. Now on saving 400 -- when I was paying three years ago for the company big national company that I had been with for years. -- first reaction was Jim is that company would move into an ever heard of them are they okay. And I said ops give me a break that's what do everything up -- up. I'm not get a commission to go to buy a policy from a company of about put out of business. It's not and so will with a company much she braced a very valid concern but most folks. You know they've never heard of that company one that company to be there when I need them because there is a difference. Between claims handling by company's solvency by companies all of the above. But the culprit that point to for everybody. -- well when 95%. Of the population is if you move to one of those small regional companies you never heard. That can write your coverage because they buy reinsurance in the international reinsurance marketplace. Know that the safety net under EU has been tripled by the legislature over the past -- so now. Up to 500000. For a plane. It is. Protected by the Louisiana insurance guaranty association that is wonderful in every state has won it similar to the FB INC. And and folks can shop around and not worry about it on -- that yet up to 500000. We're gonna go to our callers Bruce in New Orleans thanks for holding on. Were. Only. -- Right now who's been in. Years. The company which. It and sent. It. -- Year. The premium increase is the recent. Don't know -- No more the issue and rebuild. -- Dollars. He. Received. The ball. -- right. And now. -- -- -- -- -- -- -- -- -- -- I'm sorry that'll put -- -- good pitcher. So they're now they're increasing. The general music averages increase value that they say we must. Otherwise when you try to fight it. It appears population companies where the but he ran out there. They go well if you don't want them much insurance and work on in the actual value is equality will reduce 26 years. Respect and if you are. If I -- let me let me. Let me start with the last part first and what that agent was offering was depreciated -- you as opposed to replacement cost. And that's a significant. Reduction in coverage for example if your roof is fifteen years old and you have a significant damage from hurricane and -- roof would replacement would cost 20000 dollars if it's fifteen years old they may only view view. Eight or 101000 dollars toward that 20000 dollar cost and is Bruce said. With the 22000 dollar named storm deductible he's on his own for the so. There is that. Avenue. All of savings available changing from full replacement cost to. Depreciated or or. The actual cash value. Is it's it's actual it's called meaning what the roof is worth today fifteen years after it was was put in place. Number two. All in the -- -- deductible not just all calls the states or experiencing. That I'm pretty sure which company Bruce is referring to. That that is is Saddam now at a opposite names on deductible that's one of their ways of reducing their coastal exposure. The new -- markets smaller companies bill. Have 5% deductibles they have two with three. Present deductibles competing for business I was on a panel with a half dozen of my colleagues in Florida included water. Last month and I was shocked to hear mighty good four and Tom minority the commissioner of Connecticut. Talking about his several efforts to convince Tom Wilson the chairman of the board unseal all of all state lines have met here at the shoot the bull the last couple years when they -- when you go down and and shake hands with the executives that come in for the bowl game. And Tom Wilson is very sharp dive there is Smart and he has reduced. All states exposure in Louisiana. From its highest market -- homeowners. In America 22% when Katrina hit. Down to 13%. Tuesday. And part of how he does that use through Allstate and state wide. Opposite -- stone deductible that they did five years ago Tom my friend from Connecticut shocked me when I heard him say on the panel he's. Multiple times. Pleaded with Tom Wilson to return. To the homeowners market in Connecticut. When you don't think of Connecticut is a coastal expose state a very wealthy suburbs state of New York City. But all state pulled out of there as well less. Last that last point one critic before I go back to a bruise is the bundling what. You were suggesting before. I don't know we will on the hero not a -- Telling companies that -- right. Auto if they don't write homeowners well. Here's a example -- someone who's being forced to buy their auto in order to get. Home orders it's it's it's hostage either way that that either. -- Law legislation. Or by. Influence that the company has to -- Folks in to doing that which they don't wanna do and I mentioned earlier that. That I call it the hostage bill when it's proposed it's been suggested but never. Passed in any of the states that or facing these coastal challenges -- she wanted to add something. And we're gonna have to take a break -- real quick. Not Bruce is gone okay please stay with -- we're gonna go to the newsroom but John Deirdre and Tony were within next. I'm Jim O'Donnell and back insurance commissioner and wanna go right to the phone to do during you've been holding on thank you. -- Yeah. You that question for the commissioner. Patch is in trouble getting insurance but. That -- -- That about insuring ten groups. That's the area that. The -- is election groups. But ghost our product. -- -- Obviously considerate to be a underwriting. Decision. It is their underwriting decision that they have made a determination. Is riskier than they they are willing to write. You know folks think of citizens is only being. Applicable to closely exposure we have a thousand policies in citizens in Shreveport another thousand in Monroe. Properties -- or for whatever reason not a appealing. To the private sector that too far from fire protection. Or they have aluminum wiring in the house or perhaps it's the tin roof issue. But there is no law that requires the company to write a policy. That doesn't meet their underwriting criteria. And you tried all of them do during it. More than just incredible. Increase and. Shirt -- -- bill that and that's kind of what we've been talking about. And I I do wanna go back to Bruce's earlier the scenario. Where. He was challenging. The insured value that his insurer was putting on. Whose property and complaining about the fact that as it goes up. It increases the the premium -- it's certainly does when when. We had our Katrina claim in Metairie. In 2000. Eight. 2005 rather. We had a 2% name some deductible and it came to just over 4000 dollars. Because of the insured value on our home that now has more than double. And I rolled my -- and questioned it and then. Looked at the -- square foot replacement costs at my company was applying to that policy and said you know what Jim. If this. House burns down it's gonna cost that to build back what I have in place but if you don't agree with that. Europe company is not subject to being. Challenged. Some have an internal procedure built into the -- their policy. Others or subject to a complaint lodged with us at the department of insurance for us to look at that and and questioned whether they are appropriately. Valuing the replacement cost -- of an insured. Did drawn -- we're gonna have to go. One more break we're gonna come -- Tony you are next and after that Chris. Heart. -- with Jim O'Donnell a million young commissioner of insurance and Tony you've been so patient. Tony. Tony of their. Are you you gonna look like he's green apologists. You know I'm c'mon now shoot. Look at it on in the -- signal caller -- questioned Morgan dollar in the insurance commissioner. The dollar -- bond. Port but it's all been -- and you know insurance on my parents have got started -- at sixteenth and my question is about automobile insurance. And I think you've done a great job at Louisiana. You know I'd be in the interest commission over the past few years. Better than others much better than others what you know people that. Find out why in the past and hopefully your opposite working on this for about watch the media or listen Hillary -- watch television. And I -- your -- -- the years say. Dad taught -- the same thing that other insurance commissioner's instead over the past few years well. Have you -- -- -- because we have you know albeit -- blood sucking lawyers out there that one question somebody when and then there and I understand that. Years ago when the police started pulling people with no insurance and using your license plate in the big sticker on the back BJ at thirty days you know insurance that was gonna have -- rates go down what have we seen that happen. -- -- thank you very much and I appreciate the compliment the the actuarial value of fully insuring -- minimum limits. The twelve to 14%. Of uninsured drivers that we share the roads with used in Memphis then and that has been pointed to by others as that's the holy Grail that'll solve our problem. Actuarial -- and in truth and in fact that is not the problem the problem is in those areas and only in those areas. Where accidents end up in litigation. Which result not in the Big Three 100000 dollar claims because those folks are really hurt if they get 300000 dollars they had their. Their this ruptured in in their back they want operated on that they lost in column four year old whatever. Those the ones that are driving the cost of insurance through the roof all of the 151000 dollar soft tissue injuries. We have a proliferation of those. Verses. In other areas in predict even in in Louisiana other areas so. Now you can -- Point in Iraq trigger but you also have insurance companies because I know of this. Who will not go to bat they'll just subtle quote yeah so they'll put out about it and there are no and that's wrong to do well it's wrong. But it's economically. -- that's the only reason they do is because the cost of defense. Exceeds the amount of all of follow settlement that they that they can -- ended infuriates. Their their policyholders -- I hear that. Not every day but every month I here somewhere of a policyholder who got upset because they weren't they really didn't do. What the end insurance company ended up conceding. Quote and quote by paying some amount to get rid of the litigation it's a challenge it's my my biggest challenge no question about it auto insurance rates I will tell you this. For the past. Eight years since since. Well ten years. The last couple of the rating commission in the first five of of my responsibility. As as. Regulator of rates. Auto insurance rates statewide only went up 1% per year until two years ago and two years ago. As they have nationally and on an American take credit for the 1% per year because that was also. That the norm across the country. The last two years they went up 3% per year the last two years on a statewide basis but that's not to say Orleans parish didn't. Go up more than 3% and cattle -- go down to and to make the overall state. -- increased 1% for eight years and then 3% each of the last two years. They knew you had an email from from one of your listeners about. The the cost of homeowners insurance. Over the past five years it has gone up four and a half percent per year. Now if you take the major national carriers who have 40% of our market share. Take them out. The rest of the market the other 60%. Of our homeowners market has gone up two and a half percent per year. Which is a bell like the rate of inflation for the past five years so. That again. Really makes the point that it's absolutely necessary for you to shop through an agent to get the best impression of him. For people who -- shot from one at that shopping and that's fine and every six months he'll say okay I can get a better deal every time they do that. Is their credit score than checked and if it is they get -- to Wear -- you know. No they don't -- hoping that a good thing but by a shopping insurance that's that's not a it's not like trying to get alone. Which multiple loan applications does adversely affect your credit rating but. The inquiries that are made for insurance or not. I want that to very good to know. Very very quickly and not Melvin and vocalist. Hello hello you. Yes very quickly Milton. As. Award commission about where are impaired and emblem is a we're trying to get him paid well. Advocate element to display this -- -- -- On this more change. Quote the worst case economic -- money. Which a mother did and then the -- in the annual. BM mail me. Nations played back demanded -- -- the same thing I wanted to -- it could do it and I don't believe. I'm not familiar with that it sounds like what you're saying is an agency was collecting premiums and not. Pick up paying them on to the company. Pocketing them stealing them from their policyholders I had a two of my agents killed investigating. A agency in Ville Platte. Three years ago for doing that it was frankly the third time we did we did caught this individual and in the administrative. Law judges had that allowed him to go back in the business yeah I would urge you that's a legitimate concern for you'd have. Would you call my office at 1800. 2595300. Asked for me tell them why you're calling and I will return your phone call and get the details for you please. Thank you Melvin very much out of time for another -- Stephen. That number again is 1802595300. -- Yes real quick. The state of Virginia has a insurance -- -- break tag to the middle their windshield. With 40% of the metropolitan area not having insurance. Why don't we introduce. The insurance to occur in the middle my windshield on the rear view mirror. So police could eat much easier regulate what people -- sure. I'm I'm not familiar with the sticker that you're referring to weaken happily look into that I will tell you that I just did greed and in gambit while I was waiting to come come into Angelou show. That -- state police got a increase in their budget to upgrade their computer system to go to real time verify. Access for insurance coverage being in place. That should make a difference. But there is no 40%. Uninsured in the metropolitan New Orleans area statewide like Mississippi like Massachusetts as was. Reported in USA today last year. We're about twelve to 14%. It is higher in the metropolitan New Orleans area but certainly not forty. And and the good news is the legislature did pass and things is an -- those fines and fees -- insurance. And that money is gonna devastate the very thing -- -- yeah we have to take another break we'll be -- one -- Jim O'Donnell and so much our insurance commissioner always so kind to come I wanna ask one final thought. We're talking about how prices are so high. Homeowners and our -- what can change that we'll look at our position. Competition will change it and it has. By that comparison I gave before the state -- homeowners increases being four and a half percent but if you took the 60%. Other than the big national companies it's only been two and a half percent. That's not going down but that's certainly better than four and a half percent which is growing faster than the rate of inflation. Want to thank you again his number -- dollars number 180259. 5300 to 595300. Have any other questions for the insurance commissioner thank you. Thank you.