LEGISLATIVEUPDATE

HB 294 (Willard), HB 309 (Garofalo), SB 113 (Hewitt) – Provides for certain insurance premium discounts

HB 294 will become law 08/01/2023 as Act No. 1 of the 2023 Session

These are 3 essentially identical bills to mandate discounts for policyholders who bring their homes to the Fortified building standard. The bills do not specify a specific amount for the discount, a carrier can use whatever their actuarial math shows to be justified, but they must provide an actuarially justified discount for Fortified homes.

All 3 bills enjoy broad support amongst the industry, from both sides of the aisle, and across the business community. IIABL also supports all 3 bills.

HB 383 (Amedee) – Requires each insurer subject to the Louisiana Insurance Guaranty Association Law to provide for a data transfer plan and file such a plan with the commissioner of insurance

Passed the legislature and sent to the governor for signature

Requires admitted insurers to file a plan for how their data can be efficiently transferred into LIGA’s systems in the event of an insolvency.

This bill was brought in response to the difficulty that LIGA experienced after the multiple insolvencies of the past year in getting appropriate data to facilitate their taking over claims from insolvent insurers. It does not prescribe a specific method for how the data must be stored or how the transition should work, but insurers will have to think through the process and file it with the department. This should minimize the friction in transferring the data in the event of future insolvencies.

IIABL supports HB 383.

HB 511 (Illg) – Provides relative to the Louisiana Insurance Guarantee Association

Passed the House and Senate Insurance Committee

Recommitted to the Senate Committee on Finance

Continued from page 7

Provides various technical changes to the way LIGA is allowed to defend itself in the courts.Perhaps most importantly, it exempts LIGA from penalties under the bad faith statute.

This is important because, as a quasigovernmental organization, they don’t have a profit incentive to slow-pay or underpay claims. Their claims costs are ultimately passed down to the citizens of Louisiana.

HB 511 was amended in the House Insurance Committee to increase the maximum LIGA assessment to insurers from 1% to 2% IIABL supports the bill.

HB 604 faced opposition from plaintiff attorneys and was deferred in committee.