The Louisiana Senate and Governmental Affairs Committee has approved legislation that would shift the state's insurance commissioner role from an elected position to one appointed by the governor.
The proposed change, backed by Sen. Royce Duplessis, has drawn criticism from current Commissioner Tim Temple (pictured above), who said the measure would diminish voter influence without addressing core issues in the insurance market.
Senate Bill 214 would establish a selection process in which a committee composed of legislators, regulators, consumer advocates, and trade group representatives recommends candidates for the commissioner role. The governor would then appoint one of the individuals on that list.
Under the bill, candidates must have direct industry experience and cannot hold other public office or possess financial interests in regulated entities.
Duplessis told lawmakers during a May 14 committee hearing that the measure is aimed at reducing political influence over the commissioner’s office. He said the current system fosters dependence on the insurance industry, citing former Commissioner Jim Donelon’s campaign financing history; 75% of the latter’s campaign contributions came from the industry.
“How can consumers expect accountability from that?” Duplessis said.
Historically, Louisiana has experienced challenges with this role; three of the four commissioners prior to Donelon were convicted of federal crimes and served prison sentences.
Duplessis also pointed to data showing that 39 states appoint their insurance commissioners, including nine of the 10 states with the lowest average auto insurance premiums in 2025.
In contrast to Louisiana, most states appoint their insurance commissioners. For instance, Virginia and New Mexico utilize independent commissions for appointments, while the remaining appointing states typically have the governor make the selection.
Some states have transitioned between these methods. California, for example, shifted from an appointed to an elected commissioner following the passage of Proposition 103 in 1988, which aimed to increase accountability and consumer protection.
Conversely, Florida moved from an elected to an appointed system to reduce political influence in insurance regulation.
Temple has rejected the premise that appointment leads to better outcomes. He said he opposes the bill because it removes direct accountability to voters and does not address the primary cost drivers affecting Louisiana's insurance market.
“It doesn't address the cost drivers of our insurance rates. It doesn't reform the insurance market. It doesn't address insurance insolvency,” Temple said. “Let me be clear, removing the vote from the people will not lower insurance cost claims.”
If enacted, the new appointment system would begin following the expiration of Temple’s current term in 2028. The bill is part of a broader package of insurance-related legislation introduced in the current session.
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