Louisiana: Important Bills on the Move

Louisiana SB 160, which would allow for regional homeowners deductibles, is scheduled for a vote by the full House today.

“The bill has been criticized by some legislators and media outlets as pandering to the insurance industry, but we hope the tremendous efforts by lobbyists on the ground and others have helped to educate folks about the benefits to consumers – greater availability of insurance and more flexible premium rates,” said Liz Reynolds, NAMIC’s Southeast state affairs manager. “We are cautiously optimistic that the bill will pass.”

SB 160 would allow insurers to offer deductibles that are appropriate for each area of the state. Presently, while no other state prohibits insurers from applying different deductibles based on actual windstorm risk, insurers in Louisiana must uniformly apply changes in deductibles to the entire state. The bill would limit the amount of the increase in a total deductible to not more than 4 percent of the value of the property being insured.

Another bill scheduled for discussion today is HB 1369, which would broaden the scope of the firefighters’ appeal board to allow it to change the rules and reverse Property Insurance Association of Louisiana fire protection classifications. The legislation has been recommitted to the Senate Judiciary B Committee.

“HB 1369 raises complex issues that cannot be fully addressed within this legislative session,” noted Reynolds. “Turning the bill into a study resolution would be a better course of action at this time.”

Direct questions to NAMIC State Affairs Manager Liz Reynolds.

Posted: Tuesday, June 10, 2008 12:00:00 AM. Modified: Wednesday, June 11, 2008 2:59:33 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.