House Bill No. 413, introduced by Representative Carver, amends existing property and casualty insurance rate-making laws in Louisiana. The bill specifically prohibits insurers from including a rating factor in automobile insurance rate filings that is based solely on loss experience from catastrophes or natural disasters that only affected other lines of insurance. However, this prohibition does not apply to multi-line policies, allowing insurers to consider such factors in those cases. Additionally, the bill retains the provision that allows for the consideration of other relevant actuarial factors during the rate filing process.

The bill amends R.S. 22:1454(B)(5) and enacts R.S. 22:1454(B)(6), which emphasizes the importance of fair and equitable rate-making practices in the insurance industry. The new legal language clarifies the criteria for determining whether rates are excessive, inadequate, or unfairly discriminatory, while also ensuring that insurers have the flexibility to consider a broader range of actuarial factors when setting rates. The provisions of this bill will take effect on January 1, 2027.

Statutes affected:
HB413 Original: 22:1454(B)(5)
HB413 Engrossed: 22:1454(B)(5)