Louisiana Insurance Commissioner Tim Temple has announced the advancement of measures to address the state's property insurance crisis, following the legislative approval of four significant bills.
According to Temple, these initiatives aim to reform several aspects of insurance regulation and consumer protection.
The first bill, SB 323, seeks to define terms such as “catastrophic loss,” “immovable property,” and “residential property.” It also establishes tighter deadlines for insurers to initiate loss adjustments – 14 days for non-catastrophic and 30 days post-catastrophe, with potential extensions by state officials.
According to an AM Best report, the bill also mandates that payments for catastrophic losses on residential properties must be made within 60 days, and within 90 days for immovable property, following the receipt of satisfactory proof of loss.
Another legislative change, HB 611, phases out Louisiana's unique rule that prevents insurers from not renewing homeowner policies if the policyholder is current on payments and has been with the carrier for at least three years.
The bill, which recently passed the state Senate by a 26-9 vote, permits insurers to non-renew up to 5% of policies statewide annually, with a cap of 5% per parish. It also introduces a cap on deductibles at 5% of a dwelling's replacement cost unless a higher amount is requested by the insured.
Meanwhile, SB 295 revises property/casualty and liability rate filing requirements. Under this bill, rates and related information submitted by carriers are deemed approved if not explicitly rejected by the commissioner within 30 days of submission.
The bill also allows the commissioner to adjust rates deemed inadequate or unfairly discriminatory, requiring insurers to collect additional premiums or issue refunds.
The fourth bill, HB 120, solidifies the Louisiana Fortify Homes Program, which aims to help homeowners enhance their properties to withstand severe storms, particularly by upgrading to Fortified Roof standards.
Despite not specifying a funding source, the Legislative Fiscal Office anticipates the program will distribute grants totaling $25 million this year to approximately 2,500 homeowners. An allocation of $5 million is recommended for 2025, with future funding contingent upon legislative decisions.
“These bills provide real, proven solutions to the problems that have been plaguing our market," Temple said, including the reluctance of insurers and reinsurers to invest in the state.
He added that he believes the bills will foster a competitive and stable insurance market in Louisiana.
What are your thoughts on this story? Please feel free to share your comments below.
