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 a general prohibition against excessive, inadequate, or unfairly discriminatory rates, regardless of whether the market is competitive or noncompetitive.

Additionally, the bill outlines new procedures for the commissioner of insurance regarding rate disapproval. The commissioner is now required to disapprove rates if they are deemed excessive, inadequate, or unfairly discriminatory, without the previous distinction between competitive and noncompetitive markets. Upon disapproval, the commissioner must specify interim rates that protect the interests of all parties involved and may require a portion of premiums collected under these interim rates to be placed in an escrow account. If new rates become effective, the commissioner will direct the distribution of any escrowed funds or overcharges, although refunds for minimal amounts will not be mandated. The bill also repeals several existing provisions 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)