The bill amends and reenacts several sections of Louisiana's insurance law, specifically R.S. 22:1892(H), 1892.2(F), and 2303(D)(1), while also enacting R.S. 22:2303(D)(6). Key changes include the introduction of a "good faith duty" and the stipulation that the Louisiana Insurance Guaranty Association and the Louisiana Citizens Property Insurance Corporation are not liable for general damages, special damages, or penalties exceeding the policy's limit. Additionally, the bill establishes that the Louisiana Citizens Property Insurance Corporation will not charge premiums exceeding the higher of actuarially justified rates or the highest rates charged by assessable insurers in the respective parish, with a temporary rate relief measure set to expire on December 31, 2027.

Furthermore, the bill mandates that prior to February 1 of each year, the commissioner must report to the House and Senate Committees on Insurance regarding the percentage of residential property insurance business in each parish. If the corporation is found to be writing less than twenty percent of the residential property insurance in any parish, the commissioner may recommend legislative termination of certain provisions. The bill aims to address the ongoing crisis in Louisiana's residential property insurance market, providing temporary relief to policyholders until a more competitive market can be established. The provisions related to rates will take effect on January 1, 2025, while other provisions will become effective on July 1, 2024.

Statutes affected:
SB113 Original: 22:1973(F)
SB113 Engrossed: 22:1973(F)
SB113 Reengrossed: 22:1892(H), 22:2(F), 22:2303(A)(1)
SB113 Enrolled: 22:1892(H), 22:2(F), 22:2303(D)(1)
SB113 Act 757: 22:1892(H), 22:2(F), 22:2303(D)(1)