• By SARAH CHACKO
• Advocate Capitol News Bureau
• Published: Mar 21, 2008 - Page: 15A - UPDATED: 12:05 a.m.

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State Legislative Auditor Steve Theriot told legislators Thursday that a five-month dispute over access to state insurance department records has been settled.

The Legislative Audit Advisory Council voted to rescind a subpoena it had issued in November with Theriot’s office for Insurance Department documents.

The council decided the subpoena was no longer necessary because Theriot signed an agreement with Insurance Commissioner Jim Donelon under which he agrees to keep the documents confidential.

Donelon had initially refused to release some of the records, citing attorney-client privilege, health privacy laws and proprietary business secrets.

The auditor is seeking access to e-mails and backup tapes dating back to 2003 as part of a larger investigation into the state-run insurer of last resort,  Louisiana Citizens Property Insurance Corp.

Donelon did not attend the council meeting.

In a telephone interview Thursday afternoon, Donelon said the agreement addresses his earlier concerns and will also satisfy the worries of insurance companies. He said he will also drop litigation he had filed asking a district court to decide whether he had to turn over the documents.

“All issues are resolved,” Donelon said. “I sure don’t need that fight.”

Theriot said he and Donelon had a good discussion after their last meeting with the legislative panel and worked through their problems.

Their previous appearances before the council were not as productive, with Theriot complaining that Donelon was being uncooperative and Donelon refusing to let go of records.

Donelon said the agreement they entered into is along the lines of what his department has done in the past when it was asked to release proprietary information in its possession.

Theriot said the court was set to hear the case Monday.

Theriot’s audit of Citizens extended to the Department of Insurance because department employees were involved in the operation of the agency, as well as the Louisiana Automobile Insurance Plan and the Property Insurance Association of Louisiana.