Bill Summary – FastDemocracy

GREEN SHEET REDIGEST
HB 611                             2024 Regular Session                              Firment
INSURANCE/PROPERTY: Provides relative to homeowners' insurance and
termination of certain policies.
                                          DIGEST
Present law (R.S. 22:1265(D)) prohibits insurers providing property, casualty, and liability
insurance from cancelling or nonrenewing a homeowner's policy or increasing a policy
deductible that has been in effect and renewed for more than three years, unless certain
circumstances apply.
Proposed law retains present law but deletes an insurer's present law prohibition against
increasing deductibles for homeowners' policies in effect and renewed for more than three
years.
Present law does not apply to an insurer that increases policy deductibles for all homeowners'
insurance policies in this state.
Proposed law amends present law to provide that the prohibition does not apply to
modifications of policy deductibles. Further adds that modification of coverage at the time
of renewal is not a cancellation or failure to renew a policy.
Proposed law (R.S. 22:1265(K)) provides that present and proposed law (R.S. 22:1265(D)
and (E)) do not apply to policies issued after Aug. 1, 2024.
For policies in place for at least three years prior to Aug. 1, 2024, proposed law authorizes
an insurer to file a plan with the commissioner to nonrenew up to 5% of its customers'
policies per calendar year for any reason included in the plan. Requires the commissioner's
approval of an insurer's request to nonrenew more than 5% of the policies in a given calendar
year. Further requires the commissioner to adopt regulations in accordance with the
Administrative Procedures Act setting forth requirements for the plan and request authorized
in proposed law.
Proposed law provides that an insurer's business plan is considered proprietary or trade secret
in accordance with present law (R.S. 44:3.2) and the Uniform Trade Secrets Act (Chapter 13-
A of Title 51 of the La. Revised Statutes of 1950).
Proposed law prohibits an insurer from requiring a homeowners' policy deductible that
exceeds 5% of a dwelling's coverage amount, unless the insured requests otherwise.
Present law (R.S.22:1265(F) and 1333(D)) authorizes an insurer to file with the
commissioner of insurance (commissioner) certain rating plans with respect to changing
policy deductibles for policies in effect for more than three years on or before August 1,
2024. Requires the insurer to include in its filing the details of plans to write new business
in regions or areas where a new deductible will apply. Requires the commissioner to base
approval on the insurer's commitment to writing new business and authorizes approval of
filings in the best interest of policyholders. Further authorizes the commissioner to
subsequently rescind approval of any filing if the insurer fails to write new business in
accordance with the plan.
Proposed law repeals present law (R.S. 22:1265(F) and 1333(D)).
Present law (R.S. 22:1265(H) and 1333(F)) requires any company that makes a filing in
accordance with present law to reduce the rates paid by the individual homeowner by the
amount determined to be actuarially justified by the commissioner.
Proposed law repeals present law (R.S. 22:1265(H) and 1333(F)).
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                               Prepared by Beth O'Quin.
Present law (R.S. 22:1333(C)) is substantially similar to present law (R.S. 22:1265(D)).
Proposed law repeals present law (R.S. 22:1333(C)).
Present law (R.S. 22:1333(E)) is substantially similar to present law (R.S. 22:1265(G)).
Proposed law repeals present law (R.S. 22:1333(E)).
Present law (R.S. 22:1333(G)) is substantially similar to present law (R.S. 22:1265(I)).
Proposed law repeals present law (R.S. 22:1333(G)).
Present law (R.S. 22:1333(H)) is substantially similar to present law (R.S. 22:1265(J)).
Proposed law repeals present law (R.S. 22:1333(H)).
Proposed law (uncodified) provides that proposed law is intended to give insurers full
flexibility in issued policies regarding applicable deductibles. States a policyholder's right
to request a decrease in a policy's deductible in exchange for an increase in premium.
Effective on Jan. 1, 2025, except for the proposed law of R.S. 22:1265(K), which becomes
effective upon signature of the governor or lapse of time for gubernatorial action, or upon
subsequent approval of the legislature.
(Amends R.S. 22:1265(D); adds R.S. 22:1265(K)-(M); repeals R.S. 22:1265(F) and (H) and
1333(C)-(H))
   The Committee Amendments Proposed by House Committee on Insurance to the original
         bill:
   1.      Prohibit an insurer from charging a homeowners' policy deductible that exceeds
           5% of a dwelling's replacement cost value, unless the insured requests otherwise.
   2.      Amend proposed law to authorize an insurer to file a plan with the commissioner
           to nonrenew up to five percent of its customers' policies per calendar year for any
           reason, provided that no more than five percent of the insurer's policies in any
           one parish are included in the plan. Require the commissioner's approval of an
           insurer's request to nonrenew more than 5% of the policies in a given calendar
           year.
   3.      Provide that an insurer's plan and request is proprietary or trade secret
           information in accordance with present law.
   4.      Require the commissioner to adopt regulations in accordance with the APA
           setting forth requirements for the plan and request authorized in proposed law.
   5.      Provide an effective date of Jan. 1, 2025, except for R.S. 22:1265(K) of proposed
           law, which becomes effective upon signature of the governor or lapse of time for
           gubernatorial action, or upon subsequent approval of the legislature.
   6.      Make technical changes.
   The House Floor Amendments to the engrossed bill:
   1.      Modify language to provide that proposed law prohibits an insurer from requiring
           a homeowners' policy deductible that exceeds 5% of a dwelling's coverage
           amount, unless the insured requests otherwise.
   2.      Make technical changes.
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                               Prepared by Beth O'Quin.
Summary of Amendments Adopted by Senate
   Committee Amendments Proposed by Senate Committee on Insurance to the reengrossed
        bill
   1.     Removes the nonrenewal requirement of no more than 5% for any parish.
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                           Prepared by Beth O'Quin.
Statutes affected: 
HB611 Original: 22:1265(D), 22:1265(F), 22:1333(C)
HB611 Engrossed: 22:1265(D), 22:1265(F), 22:1333(C)
HB611 Reengrossed: 22:1265(D), 22:1265(F), 22:1333(C)
HB611 Enrolled: 22:1265(D), 22:1265(F), 22:1333(C)
HB611 Act 9: 22:1265(D), 22:1265(F), 22:1333(C)