Watchdog Groups Question Wooley's Lobbying Work

NEW ORLEANS (AP) - Former Insurance Commissioner Robert Wooley has come under fire for working with a group created by Allstate Insurance Company to lobby for catastrophe money.

Wooley says his work does not violate ethics laws and no ethics complaints have been filed., a group created by Allstate after Hurricane Katrina, has hired Wooley to persuade people of the benefits of a catastrophe fund and draft bills in the Legislature on the topic.

Robert Hunter, director of insurance at the Consumer Federation of America, says it's the, "Classic case of the revolving door."

A catastrophe fund would cap the exposure that private insurance companies face on potential hurricane losses in Louisiana because a government-backed fund, whether state or federal, would step in to cover claims beyond a certain level. That would reduce the need for companies to buy reinsurance.