In all of the tumult and turmoil about insurance coverage for the homes destroyed by Katrina, the issue of rising rates has been one that legislatures and governors debated almost exclusively. Few people are familiar with the Louisiana Insurance Rating Commission.

The commissioners ostensibly have power to limit, restrict and otherwise regulate companies that write insurance policies. After the 2005 hurricanes, with the cost of property insurance shooting upward, some Louisiana homeowners look to the rating commission to help bring prices back down.

There’s little chance of that – and homeowners angry over insurance hikes shouldn’t take out their frustrations on the commission’s six members, who have little power over rates anyway. They did at one time, but such government intervention in the marketplace amplified the perception that good-ole-boy Louisiana was a lousy place to run an insurance business.

Three consecutive insurance commissioners had spent time in federal prison. And the Insurance Rating Commission was an arm of government with the power to meddle in the free market, blocking rate increases and otherwise interfering with the business of making a simple profit.

So in 2003, one of the sitting commissioners persuaded legislators to pass a law that stripped the commission of much of its power. The new law meant the rating commission would only have power to block rate increases of 10 percent or more. So if your homeowners’ insurance company wants a 9 percent increase, it doesn’t need rating commission approval; it only needs approval from the insurance commissioner.

Louisiana still understands free enterprise – they clearly have an enlightened approach not only to the business of doing business, but also to the rehabilitation of those who have paid their debt to society.