Louisiana Senate Bill SB138

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10

Caption

Provides that approved unauthorized insurers delivering surplus lines insurance in this state shall not be required to file or seek approval of their rates and forms. (gov sig)

Impact

If enacted, SB138 would fundamentally alter the landscape of surplus lines insurance by relegating existing requirements for form and rate approval. This exemption means that approved unauthorized insurers can operate without the typical restraints imposed by state regulatory requirements, which could foster an increase in available insurance products and potentially lower costs for consumers. However, it might also raise concerns about oversight and consumer protections within this sector, as the lack of regulatory approvals could lead to varying standards among insurers.

Summary

Senate Bill 138 aims to streamline the regulatory framework surrounding surplus lines insurance in Louisiana by exempting approved unauthorized insurers from the requirement to file or seek approval for their rates and forms. This significant change is intended to enhance the accessibility and competitiveness of surplus lines insurance in the state, encouraging more insurers to participate in the market without the bureaucratic burden of rate filings. The bill's passage could lead to a more dynamic insurance landscape, potentially resulting in greater options for consumers and businesses seeking coverage.

Sentiment

The sentiment surrounding SB138 appears to be mixed among stakeholders. Proponents of the bill, primarily within the insurance industry, argue that the easing of regulations will incentivize more insurers to enter the market, which could ultimately benefit consumers through increased competition and choice. Conversely, critics may express concerns regarding the potential reduction in regulatory oversight, fearing that it could lead to inadequate protections and quality assurance within the surplus lines sector.

Contention

The main point of contention regarding SB138 relates to the balance between fostering a competitive insurance market and maintaining adequate consumer protections. While supporters highlight the need for flexibility in a challenging economy and view the bill as a necessary modernization, opponents warn that removing regulatory approval could pave the way for risks associated with unregulated practices. Discussion may also center on whether the bill provides sufficient measures to protect consumers against potential abuses or failures by insurers operating under this new regulatory exemption.