Signed by Governor Jeff Landry

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that requires homeowner and auto insurance companies to show customers what they paid previously for coverage when sending out renewal notices in Louisiana.

Highlights:

• Requires insurers to disclose all available premium-reducing discounts for homeowners’ and private passenger motor vehicle insurance policies at issuance renewal (Sec. 881.1(A)).

• Requires that insurers include the previous policy’s premium with any renewal and display it prominently next to the renewal premium for homeowners’ and private passenger auto policies (Sec. 881.1(B)).

• Repeals the distinction between competitive and non-competitive markets in rate-setting regulation, applying a uniform standard to all markets (Sec. 1454(A), 1456(A)(A)). 

• Amends and redefines an “excessive” rate as one that results in unreasonably high profit or includes unreasonably high expense provisions relative to services rendered, regardless of market competitiveness (Sec. 1452 (C)(6)).

• Authorizes the Commissioner of Insurance to disapprove any rate found to be excessive, inadequate, or unfairly discriminatory, regardless of market classification (Sec. 1465(A)(1), (4)).

• Prohibits classifying risk based on race, color, creed, or national origin, while allowing other criteria for rate-setting (Sec. 1454(A)).

• Repeals several statutes that previously defined and regulated rates based on market competitiveness (Repealed: R.S. 22:1451(D), 1452(C)(4) and (15), 1353, and 1455) (Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that requires homeowner and auto insurance companies to show customers what they paid previously for coverage when sending out renewal notices in Louisiana.

Highlights:

• Requires insurers to disclose all available premium-reducing discounts for homeowners’ and private passenger motor vehicle insurance policies at issuance renewal (Sec. 881.1(A)).

• Requires that insurers include the previous policy’s premium with any renewal and display it prominently next to the renewal premium for homeowners’ and private passenger auto policies (Sec. 881.1(B)).

• Repeals the distinction between competitive and non-competitive markets in rate-setting regulation, applying a uniform standard to all markets (Sec. 1454(A), 1456(A)(A)). 

• Amends and redefines an “excessive” rate as one that results in unreasonably high profit or includes unreasonably high expense provisions relative to services rendered, regardless of market competitiveness (Sec. 1452 (C)(6)).

• Authorizes the Commissioner of Insurance to disapprove any rate found to be excessive, inadequate, or unfairly discriminatory, regardless of market classification (Sec. 1465(A)(1), (4)).

• Prohibits classifying risk based on race, color, creed, or national origin, while allowing other criteria for rate-setting (Sec. 1454(A)).

• Repeals several statutes that previously defined and regulated rates based on market competitiveness (Repealed: R.S. 22:1451(D), 1452(C)(4) and (15), 1353, and 1455) (Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that requires homeowner and auto insurance companies to show customers what they paid previously for coverage when sending out renewal notices in Louisiana.

Highlights:

• Requires insurers to disclose all available premium-reducing discounts for homeowners’ and private passenger motor vehicle insurance policies at issuance renewal (Sec. 881.1(A)).

• Requires that insurers include the previous policy’s premium with any renewal and display it prominently next to the renewal premium for homeowners’ and private passenger auto policies (Sec. 881.1(B)).

• Repeals the distinction between competitive and non-competitive markets in rate-setting regulation, applying a uniform standard to all markets (Sec. 1454(A), 1456(A)(A)). 

• Amends and redefines an “excessive” rate as one that results in unreasonably high profit or includes unreasonably high expense provisions relative to services rendered, regardless of market competitiveness (Sec. 1452 (C)(6)).

• Authorizes the Commissioner of Insurance to disapprove any rate found to be excessive, inadequate, or unfairly discriminatory, regardless of market classification (Sec. 1465(A)(1), (4)).

• Prohibits classifying risk based on race, color, creed, or national origin, while allowing other criteria for rate-setting (Sec. 1454(A)).

• Repeals several statutes that previously defined and regulated rates based on market competitiveness (Repealed: R.S. 22:1451(D), 1452(C)(4) and (15), 1353, and 1455) (Sec. 2).

Full Bill Text