House Bill No. 576, introduced by Representative Robby Carter, aims to amend existing insurance rate regulations in Louisiana. The bill modifies the definition of "excessive" rates, stating that such rates are those likely to produce a profit that is unreasonably high for the insurance provided or where the expense provision is unreasonably high in relation to the services rendered. It also removes the previous stipulation that rates in competitive markets could not be considered excessive. The bill establishes that rates must not be excessive, inadequate, or unfairly discriminatory, regardless of whether the market is competitive or noncompetitive.

Additionally, the bill requires the commissioner of insurance to disapprove rates if they are deemed excessive, inadequate, or unfairly discriminatory, without the previous distinction between competitive and noncompetitive markets. It introduces a provision that allows the commissioner to specify interim rates upon request from insurers when disapproving a rate filing, ensuring that these interim rates protect the interests of all parties involved. Furthermore, it permits the commissioner to order that a portion of premiums collected under interim rates be placed in an escrow account, with guidelines for the distribution of these funds if new rates become effective. The bill also repeals several existing laws related to competitive and noncompetitive markets.

Statutes affected:
HB576 Original: 22:1452(C), 22:1454(A), 22:1465(A)(1), 22:1451(D), 22:1452(C)(4)
HB576 Engrossed: 22:1452(C), 22:1454(A), 22:1465(A)(1), 22:1451(D), 22:1452(C)(4)