The bill amends and reenacts several sections of Louisiana's insurance laws, 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 certain damages, including special damages or penalties, and that the Citizens Property Insurance Corporation is not liable for general damages exceeding the policy's limit. Additionally, the bill establishes that the corporation's rates for policies will not exceed the higher of actuarially justified rates or the highest rates charged among assessable insurers, with a specific focus on maintaining affordability in the residential property insurance market.

Furthermore, the bill recognizes the ongoing crisis in Louisiana's residential property insurance market and aims to provide temporary rate relief until a more competitive market can be established. The provisions regarding rate limits and reporting requirements will be effective starting January 1, 2025, and are set to terminate on December 31, 2027. This legislation is part of broader efforts to address the challenges faced by residents in securing affordable insurance coverage in the wake of recent storms and insurance insolvencies.

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)