An incredible story from Louisiana - Louisiana Citizens Property Insurance Company’s financial records are locked on their computer system and these records may have to be re-created from scratch (see here & here). Citizens is nine months overdue on its 2005 audit, and the outside auditor has withdrawn. State Treasurer John Kennedy:
The software didn't work. Our data is trapped within the system. We can't get it out
Terry Lisotta is (was) Citizens’ CEO and also serves as executive director of PIAL (Property Insurance Association of Louisiana). According to reports PIAL was the old insurer of last resort for the state before Citizens existed, and Citizens contracted with the PIAL for services, including the $6 million purchase of the computer software to maintain Citizens financial and other records. Lisotta said:
I can vouch for me and my senior staff: We have done nothing wrong
There are indications that Citizens plans on suing PIAL. And Legislative Auditor Steve Theriot said
We can't with any real assurance tell you that nothing has been misappropriated
Even more troubling is a comment from the insurance commissioner:
Policyholders would not bear the cost. It's possible that (insurance) companies doing business in the state would bear the costs
You can imagine what would be going on if this were a private insurance company or insurance agent/broker.
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