Among some legislators there is a concern that rates are now too high, “but the 10 percent is there to make sure that rates are actuarially sound and another reason is to make sure the voluntary market stays in the area,” said Mr. LaCost.

He said legislators are also considering an attempt to change more rigorous building code requirements passed last year by delaying their implementation for parishes located away from the coast.

Proponents, according to Mr. LaCost, are arguing there are not enough inspectors available to implement the tougher code.

A proposal is in the works to use a state surplus for a rebate to homeowners insured by Citizens and the voluntary market who were hit with assessments. The assessments were needed to pay for bonds that were issued after Hurricane Katrina so that Citizens could meet all its claims obligations.

Mr. LaCost said the insurers have a concern how information will be handled that they give to the state in order for policyholders to obtain the rebate.

“We want to make sure if we have to give information about policyholders to government it is protected. We're concerned about privacy. It's a huge issue,” he said.

According to Mr. LaCost there is currently no consensus in the legislature on insurance issues “or how to spend the billion-dollar state surplus.”

“In a short 10-day session,” he warned, “there is the potential for misguided legislation to advance that could have negative long-term consequences. Many of the insurance issues require thorough study and discussion that is difficult to achieve within the allotted time frame.

“Without clear spending priorities, the state may not maximize the opportunity to mitigate future losses or stimulate economic recovery. We are prepared to work with lawmakers on finding solutions during the session, but many of the answers do not require more government intervention.”

The PCI representative added, “We are encouraging lawmakers to send a positive message that says the state is committed to building a healthy insurance marketplace that encourages insurers to consider doing business in Louisiana.”

In PCI's view, Louisiana should encourage new capital to enter the property insurance market by “enacting greater regulatory flexibility, eliminating the rating commission and streamlining the regulatory process. PCI supports proposals that enhance market flexibility and remove regulatory or political barriers to free, fair and competitive markets,” said Mr. LaCost.