FOR IMMEDIATE RELEASE

May 7, 2024

 

Governor Landry Signs Four of Commissioner Temple’s Property Insurance Reform Bills into Law

Commissioner Tim Temple, Senate Insurance Chairman Kirk Talbot, House Insurance Chairman Gabe Firment and other lawmakers joined Governor Jeff Landry at the State Capitol earlier today as he signed four of Temple’s insurance reform bills aimed at stabilizing Louisiana’s property insurance market.

“Our hope is that this package of bills will start to create more balance in the law and in the market such that we can drive the cost of property insurance down so it’s more affordable for our citizens,” Gov. Landry said.

“Louisiana families and businesses have been suffering from skyrocketing property insurance costs since 2020,” Commissioner Temple said. “Change does not come overnight, but the signing of these bills is a major step toward reforming Louisiana’s insurance market.”

Authored by Chairman Talbot, SB 323 establishes a simple, clear timeline for the claims process that makes it easier for policyholders and insurers to understand what their responsibilities are during the claim. The measure aims to reduce unnecessary litigation and simplify the legal process when litigation is needed. It also creates a cure period to give parties more time to resolve disputes before turning to litigation.

“I think this package of bills makes us competitive with other states,” Senator Talbot said. “That will turn into availability, which should turn into affordability.”

SB 295, which was authored by Senator Heather Cloud, increases speed-to-market for insurance products and rate changes while maintaining regulatory oversight of the industry. The bill updates the Louisiana Department of Insurance’s rate and form filing approval process from a prior approval method to a file-and-use system.

HB 611, which was authored by Chairman Firment, removes the three-year rule for new policies, which puts Louisiana in line with every other state, and lets insurers more effectively manage their risk by allowing them to nonrenew up to 5% of their three-year policies each year.

“I think this is really an important first step, signing this package of bills, in addressing the affordability and availability crisis when it comes to property insurance in Louisiana,” Chairman Firment said.

The fourth bill in the package, Representative Matthew Willard’s HB 120, removes the sunset for the Louisiana Fortify Homes Program and demonstrates Louisiana’s long-term commitment to increasing resiliency by strengthening homes and businesses against future risks.

“The only way to fix our insurance crisis is by creating a stable and predictable market that attracts insurance companies to compete in our state,” Temple said. “These bills provide real, proven solutions to the problems that have been plaguing our market.”

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting www.ldi.la.gov.