Requests the Dept. of Insurance to study the insurance industry and information used in determining the premiums of insureds who live in the coastal parishes
Impact
The resolution reflects a call to better understand the complexities of insurance premium calculations, especially in the wake of environmental disasters such as hurricanes. By requesting this study, the state aims to enhance transparency surrounding the insurance rates that homeowners are facing. This initiative may lead to recommendations for legislative adjustments, potentially influencing future regulations and ensuring that premium adjustments are justified and equitable across different geographic locations.
Summary
House Resolution No. 17 urges the Department of Insurance in Louisiana to undertake a comprehensive study of the insurance industry, focusing specifically on the factors contributing to the homeowner's insurance premiums for residents in coastal parishes. The resolution acknowledges that premiums have escalated significantly since Hurricane Katrina in 2005, disproportionately affecting those living in coastal areas compared to other regions in the state. It aims to illuminate the rationale behind the premium increases and to examine the methodologies employed by insurers during the rate-setting process.
Sentiment
The sentiment surrounding HR 17 appears to be constructive, as it seeks to address the concerns of affected homeowners by advocating for a thorough investigation into insurance practices. Supporters of the resolution likely view it as a necessary step to hold the insurance industry accountable and to promote fairness in the ratemaking process, which has historically led to heightened financial burdens on residents in certain areas.
Contention
Notable points of contention may arise from differing opinions on the effectiveness of regulation versus market freedom in the insurance sector. While some advocates may argue that increased oversight and regulation are essential in protecting consumers from unjustified premium hikes, others may see such measures as potential hindrances to the insurance market's stability. Furthermore, the resolution's implementation may solicit input from various stakeholders within the insurance industry, leading to debates over the interim measures needed to balance consumer protection with business interests.
Requests the Department of Insurance to study the issues of the availability and affordability of homeowners' insurance in coastal and intercoastal areas of the state
Requests the commissioner of insurance to issue regulations requiring insurers to disclose to insureds that homeowner's claims not exceeding the policy deductible may be used by the insurer in determining rates or whether to renew a homeowner's policy
Urges and requests the Dept. of Insurance to study the feasibility of prohibiting insurers from imposing more than a 2% deductible, including but not limited to a named-storm or hurricane deductible on any homeowner's insurance policy
Requests the Louisiana Department of Insurance to study prohibiting insurers from using claims that did not exceed the insured's deductible to cancel coverage
Requests that the Department of Insurance study and report on approaches taken by other southern states to reduce automobile insurance premiums, report statistics obtained by the insurance fraud investigation unit, and advise as to ways to increase the number of automobile insurers writing policies in the state and to report that information to the legislative Task Force on Available and Affordable Automobile Insurance.