Senate Bill No. by Senator Luneau amends existing Louisiana insurance law to enhance the regulation of insurance premium rates by the commissioner of insurance. The bill expands the definition of "excessive" rates to include those that are likely to produce unreasonably high long-term profits, and it removes the previous stipulation that no rate in a competitive market could be considered excessive. Additionally, it establishes that rates must not be excessive, inadequate, or unfairly discriminatory, regardless of whether the market is competitive or noncompetitive.

The bill also modifies the authority of the insurance commissioner, requiring him to disapprove any rate that is deemed excessive, inadequate, or unfairly discriminatory, irrespective of market conditions. Furthermore, it allows the commissioner to mandate refunds for any excessive rates identified, in addition to the existing provisions for inadequate or discriminatory rates. This legislation is set to take effect on August 1, 2025.

Statutes affected:
SB62 Original: 22:1452(C)(6), 22:1454(A), 22:1465(A)(1)