Louisiana state-run insurer loses records for last two years

This story from last week is totally outrageous:

Louisiana’s bulwark insurer of last resort has lost its financial records for the past two years probably because of mishandling of its computer software program, the state’s legislative auditor revealed to a group of high-level state officials and legislators Tuesday.

Remember Louisiana Gov. Kathleen Blanco’s threat to insurance companies to use the state-run insurer to compete with them if they don’t lower rates for homeowners insurance?   Keep that in mind as you read more from the story.

“Without having an accounting record, you don’t know what’s there,” he said. “We’ve gone through two years with no financials. We don’t know what the operations for Citizens is. Are they breaking even, are they losing money? We don’t know.”

Major questions lingering Tuesday were how long had the managers of Citizens known about the problem and why hadn’t they informed the full board of Citizens. 

Gov. Blanco’s threat sounds pretty empty. Compete with private insurers? How are they doing to do that when they don’t even know what financial shape they are in? 

  

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