Louisiana: Regional Hurricane Deductible Bill Passes Senate

Despite opposition from coastal legislators and critical media coverage, the Louisiana Senate passed SB 160, which would allow insurers to offer named storm deductibles that vary by geographic region of the state.

Current law requires insurers to uniformly apply deductibles to the entire state. Louisiana is the only state that prohibits insurers from applying different deductibles based on actual windstorm risk.

Prior to passing the bill April 30, senators did amend the legislation to include a 4 percent cap on deductibles. The Department of Insurance would promulgate rules and regulations related to implementing the variable deductible system.

The Coalition to Insure Louisiana supports SB 160 and considers it to be one of the most important bills of the session pertaining to insurance affordability and availability. NAMIC is a member of the CIL. We sent an Action Alert to members when this legislation first began to move in the Senate.

Direct questions to NAMIC State Affairs Manager Liz Reynolds.

Posted: Tuesday, May 06, 2008 12:00:00 AM. Modified: Tuesday, May 13, 2008 11:26:04 AM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.