Louisiana House Bill HCR189

Louisiana 2012 Regular Session

• Introduced: 5/30/12
• Engrossed: 5/30/12
• Passed: 6/1/12

Caption

Urges and requests the commissioner of the Dept. of Insurance relative to La. Citizens Property Insurance Corp. premium increases

Impact

The resolution seeks to mitigate the severe impacts of sudden rate increases on Louisiana homeowners, particularly in high-risk coastal areas. By phasing in the rate hike, the state aims to allow homeowners time to adjust financially to the new costs and to seek other insurance arrangements if necessary. The Louisiana coastal parishes are not only critical to the state’s economy but also hold historical and cultural significance, leading legislators to question the long-term implications of such rate increases on community sustainability and economic stability.

Summary

HCR189 is a House Concurrent Resolution that urges and requests the Commissioner of Insurance in Louisiana to implement a phased increase in premiums for the Louisiana Citizens Property Insurance Corporation over a four-year period. The resolution responds to a significant and immediate rate increase approved by the board of directors, which disproportionately affects property owners in coastal parishes of Louisiana. This proposed premium hike could drastically affect insurance rates, with increases as high as 170% in some parishes, raising concerns among residents and legislators alike about the affordability and accessibility of property insurance in vulnerable areas.

Sentiment

Overall, the sentiment surrounding HCR189 is largely supportive among lawmakers and constituents who see the need for consumer protection measures against steep insurance hikes. Legislators expressed a sense of urgency and responsibility to act on behalf of affected homeowners, illustrating a collective understanding of the financial burden on citizens. However, this support may contrast with the positions of some insurance providers, who could argue for the need for rate adjustments in response to changing market conditions and risk assessments.

Contention

Notable points of contention include the justification behind the rate increase by the Louisiana Citizens Property Insurance Corporation, which cited the need for higher premiums following a long period without increases. Critics might raise concerns about the balance between necessary insurance funding and the affordability of insurance policies for residents. The resolution's call for a gradual increase attempts to address these concerns but may lead to ongoing debates about the governance and regulation of insurance practices in Louisiana.