The proposed legislation, known as the "Stated Value Policy Act," aims to establish a framework for insurers of residential properties in Louisiana to offer stated value policies. This new policy option allows homeowners to declare a specific value for their property, which the insurer agrees to cover, regardless of the property's current market value. The bill outlines requirements for insurers to disclose these policy options prominently in all relevant documents and mandates that homeowners provide specific documentation, such as a written payoff statement and a mortgage certificate, when opting for a stated value policy. Additionally, insurers must ensure that the coverage limit is at least equal to the total assessed fair market value of the property.

The Act also emphasizes consumer education by requiring the commissioner of insurance to provide clear information about the risks and limitations associated with stated value policies. This includes comparisons with other types of insurance policies and consumer tips for evaluating options. The legislation includes provisions for enforcement, penalties for non-compliance, and a severability clause to ensure that if any part of the Act is deemed invalid, the remainder still stands. The Act will take effect upon the governor's signature or after the designated period for bills to become law without a signature.