ENROLLED
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Regular Session, 2012
HOUSE CONCURRENT RESOLUTI ON NO. 189
BY REPRESENTATIVES JONES AND HARRISON AND SENATOR ALLAIN
A CONCURRENT RESOLUTI ON
To urge and request the commissioner of insurance to require Louisiana Citizens Property
Insurance Corporation to implement its 2012 premium increase by phasing it in
incrementally over a four-year time period.
WHEREAS, in March of 2012, the board of directors at Louisiana Citizens Property
Insurance Corporation voted to approve a rate increase that will substantially affect property
insurance premium rates statewide; and
WHEREAS, in May 2012, Louisiana Citizens Property Insurance Corporation
submitted its rate filing to the Louisiana Department of Insurance; and
WHEREAS, the rate increase will commence effectivity on June 1, 2012; and
WHEREAS, property owners in Ascension Parish with wind-only policies will suffer
a rate increase of one hundred fifty-four percent; and
WHEREAS, property owners in Cameron Parish with wind and hail policies will
suffer a rate increase of fifty-two and two-tenths percent; and
WHEREAS, property owners in Iberia Parish with wind and hail policies will suffer
a rate increase of sixty-eight percent; and
WHEREAS, property owners above the Gulf Intracoastal Waterway in Jefferson
Parish with wind and hail policies will suffer a rate increase of nine and nine-tenths percent;
and
WHEREAS, property owners below the Gulf Intracoastal Waterway in Jefferson
Parish with wind and hail policies will suffer a rate increase of thirty-nine and sixth-tenths
percent; and
WHEREAS, property owners in Lafourche Parish with wind and hail policies will
suffer a rate increase of forty-seven percent; and ENROLLEDHCR NO. 189
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WHEREAS, property owners in Livingston Parish with wind-only policies will suffer
a rate increase of one hundred sixty-one and nine-tenths percent; and
WHEREAS, property owners above the Gulf Intracoastal Waterway in Plaquemines
Parish with wind and hail policies will suffer a rate increase of twelve and two-tenths
percent; and
WHEREAS, property owners below the Gulf Intracoastal Waterway in Plaquemines
Parish with wind and hail policies will suffer a rate increase of ten percent; and
WHEREAS, property owners above the Gulf Intracoastal Waterway in St. Bernard
Parish with wind and hail policies will suffer a rate increase of seven and four-tenths
percent; and
WHEREAS, property owners below the Gulf Intracoastal Waterway in St. Bernard
Parish with wind and hail policies will suffer a rate increase of nine and sixth-tenths percent;
and
WHEREAS, property owners in St. Martin Parish with wind and hail policies will
suffer a rate increase of thirty-seven percent; and
WHEREAS, property owners in St. Mary Parish with wind and hail policies will
suffer a rate increase of one hundred seventy percent; and
WHEREAS, property owners in Terrebone Parish with wind and hail policies will
suffer a rate increase of fifty-two percent; and
WHEREAS, property owners in Vermilion Parish with wind and hail policies will
suffer a rate increase of one hundred ten percent; and
WHEREAS, the board of directors at Louisiana Citizens Property Insurance
Corporation justify the rate hike by reasoning that this 2012 spike in premiums is the first
rate increase since the corporation began writing wind and hail policies; and
WHEREAS, property owners would have been more prepared to cope with a more
gradual increase, implemented over the course of several years; and
WHEREAS, a substantial percentage of property owners will be negatively affected
by the effects of facing such a drastic increase; and
WHEREAS, property owners in the affected areas will be subject to an insurance
premium that increases at an average rate of fifty-eight percent in the timespan of one year;
and ENROLLEDHCR NO. 189
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WHEREAS, this 2012 rate increase will affect at least thirty-five thousand
consumers of Louisiana Citizens Property Insurance Corporation; and
WHEREAS, the coastal parishes of Louisiana and its citizens and their properties are
an essential part of Louisiana's economic stability; and
WHEREAS, the coastal parishes of Louisiana and its citizens and their properties are
an essential part of Louisiana's rich history and culture; and
WHEREAS, the future of Louisiana's economy and continued cultural growth is
dependent, in large part, upon the preservation of the communities and people that reside in
the coastal parishes; and
WHEREAS, it is in the state of Louisiana's best interest to encourage the
continuation of the businesses and communities that are located in the coastal parishes.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
urge and request the commissioner of insurance, in accordance with the Administrative
Procedure Act, to adopt all necessary rules and regulations to prohibit Louisiana Citizens
Property Insurance Corporation from implementing drastic rate hikes and to require that this
2012 increase be introduced in incremental phases over the course of the next four years.
BE IT FURTHER RESOLVED that a suitable copy of this Resolution be transmitted
to the Louisiana Department of Insurance and the commissioner of insurance.
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE