Louisiana: Senate Insurance Bills Ready for House Passage

Three important Louisiana Senate insurance bills, introduced by Sen. Don Cravins, are pending final passage in the House after receiving favorable reports by the House Insurance Committee and second reading by the full House last week.

SB 160 would allow for variable hurricane deductibles by region. The industry has kept up intense lobbying pressure to ensure that SB 160 passes. There was considerable debate on the bill during the House Insurance Committee meeting, and the media has kept the issue in front of consumers throughout the state.

Cravins explained to the committee that SB 160 would further encourage companies to do more business in Louisiana and emphasized that increased competition is what is needed most to address the state’s coastal insurance concerns. The Department of Insurance's chief actuary also testified and pointed out that the bill is not a “slam dunk” for the insurance industry to do whatever it wants to do. Companies must meet DOI criteria for the variable deductibles to work.

There was not as much discussion necessary for the committee to understand SB 44, which authorizes a “third invitation” for grants under the Insurance Louisiana Incentive Program, and for SB 150, which provides for the formation and regulation of domestic captive insurers.

NAMIC will continue to monitor the many pieces of insurance-related legislation working its way through the Louisiana Legislature. The session is slated to continue through most of June.

Direct questions to NAMIC State Affairs Manager Liz Reynolds.

Posted: Tuesday, May 20, 2008 12:00:00 AM. Modified: Tuesday, May 20, 2008 2:49:37 PM.

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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.