House Bill No. [insert bill number] proposes the enactment of the Stated Value Homeowner's Policy Act, which aims to provide homeowners in Louisiana with the option to select insurance coverage based on a stated value for their residential property, rather than solely on its market value. The bill mandates that all property and casualty insurers operating in the state must offer this stated value homeowner's policy option. It also outlines specific requirements for homeowners who choose this policy, including the submission of a written payoff statement from their mortgage holder and a mortgage certificate from the clerk of court. Insurers are required to disclose these policy offerings prominently in all relevant documents and ensure that the coverage limit is equal to the unpaid principal balance of the mortgage.

Additionally, the bill establishes minimum policy value standards, prohibiting insurers from issuing a stated value homeowner's policy for an amount less than the verified outstanding balance of any mortgage on the property. The Louisiana Department of Insurance is tasked with enforcing the provisions of this act and is authorized to adopt administrative rules for its implementation. Penalties for non-compliance with the act are also outlined, including fines and potential license revocation for insurers found in violation. The act will take effect upon the governor's signature or after the designated time for gubernatorial action.