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Board votes to change Long Beach's insurance agent of record after hourlong debate
Summary
After extended testimony from competing agents and questions about pooled coverage and FEMA treatment, the Long Beach mayor and board voted to designate Frank Boudreaux as the city's agent of record; the motion passed on a 6—2 vote.
The Long Beach mayor and Board of Aldermen voted to change the city's insurance agent of record to Frank Boudreaux after an extended discussion that included presentations from the city's long-time agent and an alternative broker.
Tom Sawyer of Brown & Brown, who said his firm had served as the city's agent for many years, urged the board to delay any change and hold a work session to review details before shifting agents. "When you're talking about coverage...this is serious business," Sawyer said, citing the city's $28 million statement of values and past hurricane claims. He warned that pooled arrangements could raise questions with FEMA and that the city needed a city-attorney review of any pool bylaws before proceeding.
Gallagher Insurance's Frank Bordo told the board that "Coast GovPro" operates as a nonprofit transfer vehicle with dedicated sublimits and local adjusters and said his team could provide property modeling and claims support. Boudreaux, who was seeking designation as agent of record, said he would perform a claims and policy analysis and present recommendations 120—150 days before renewal if named agent. "If we haven't delivered on providing services to the city of Long Beach, fire us," he told the board, describing a 10-day rescission period carriers typically allow.
After debate about timing and conflicts of interest, an alderman moved to name Boudreaux agent of record. The board approved the motion in a roll-call vote that recorded six votes in favor and two opposed. The mayor was authorized to execute the necessary authorizations to transfer agent-of-record status.
The board and staff did not adopt any immediate policy changes to coverage limits or to join a pooled multi-entity program during the meeting; several members stressed that policy placement decisions would return to the board after analysis and proposals were presented. The board's next procedural step is to collect current policies and loss histories, and to receive a market analysis ahead of the October renewal window.
