Caldwell issues opinion on rate hikes of over 100%
Significant rate increases for state-sponsored wind and hail property insurance policies that Citizens Property Insurance Corp. approved earlier this year were legal, according to an opinion by the state's attorney general.
The Courier reports that the Attorney General James "Buddy" Caldwell has issued his opinion. The rate increases brought the cost of insurance up more than 100 percent in some coastal parishes.
State Treasurer John Kennedy had attacked the rate increases, saying he believed they were illegal.
At issue was the state law that established Citizens, which says the insurance company must charge either 10 percent more than the actuarial rate, which is set to cover home expenses and possible losses, or the market rate charged by private insurance companies.
(Copyright 2012 by The Associated Press. All Rights Reserved.)