The Louisiana state legislature has recently passed House Bill 148, requiring insurers to provide prior premium amounts with renewals of certain insurance policies and repealing the distinction between competitive and noncompetitive markets with respect to the regulation of insurance rates. The key highlights are as follows:
- If an insurer issues a renewal policy of homeowners’ or private passenger motor vehicle insurance in Louisiana, the insurer shall provide the premium for the policy last issued by the insurer with the respective renewal policy, and shall ensure the prior premium is prominently displayed in close proximity to the renewal premium.
- The determination of whether rates, supplementary rate information, and any supporting information filed is in fact confidential, trade secret, or proprietary shall be made by the commissioner.
- Rates shall not be excessive, inadequate, or unfairly discriminatory. The commissioner shall disapprove a rate if he determines that the rate is excessive, inadequate, or unfairly discriminatory.
- The definition of “excessive” has been amended as follows: “a rate that is likely to produce a profit that is unreasonably high for the insurance provided or the expense provision included therein is unreasonably high in relation to the services rendered.”
Please note that this bill becomes effective on August 1, 2025.
For any questions related to the above referenced legislative change in Louisiana, please contact Westmont Associates!