HLS 14RS-109 ORIGINAL
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are additions.
Regular Session, 2014
HOUSE BILL NO. 549
BY REPRESENTATIVE BROSSETT
INSURANCE/PROPERTY: Provides relative to disclosures for windstorm insurance
AN ACT1
To amend and reenact R.S. 22:1333(D) and to enact R.S. 22:1337(D), relative to disclosures2
for windstorm insurance; to provide for uniform disclosure of deductibles to3
policyholders; to cap the maximum deductible applicable to windstorms; and to4
provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 22:1333(D) is hereby amended and reenacted and R.S. 22:1337(D)7
is hereby enacted to read as follows: 8
§1333. Homeowner's insurance; insurer's nonrenewal without cause; inclusion in9
insured's file prohibited; certain prohibitions10
* * *11
D. Notwithstanding the provisions of Subsection C of this Section, an insurer12
may make a filing with the commissioner pursuant to R.S. 22:1464 for authorization13
to deviate from the provisions of Subsection C of this Section for the sole purpose14
of changing the policy deductible to a total deductible of not more than four two15
percent of the value of the property being insured for named storms or hurricanes on16
a homeowner's policy of insurance that has been in effect for more than three years.17
Any insurer filing with the commissioner pursuant to this Subsection shall file with18
the commissioner a business plan setting forth the insurer's plan to write new19
business in the particular region or area of the state in which the new deductible is20 HLS 14RS-109 ORIGINAL
HB NO. 549
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to apply. The commissioner's approval is to be based on the insurer's commitment1
to the writing of new business in the respective region or area of the state in which2
the new deductible is to apply. The commissioner may also approve a filing that he3
determines to be in the best interest of the policyholders. The commissioner may4
subsequently rescind his approval of any filing made pursuant to this Subsection in5
the event the insurer fails to write new business in accordance with the business plan.6
Any business plan filed shall be considered proprietary or trade secret pursuant to7
information under the provisions of R.S. 44:3.2 and the Uniform Secrets Act. The8
commissioner shall provide an annual report to the legislative committees on9
insurance on the application and effectiveness of the provisions of this Section. The10
commissioner shall promulgate regulations pursuant to the Administrative Procedure11
Act setting forth the criteria for the filing, including any financial or other12
requirements that he deems necessary to act on the request by an insurer. Any13
regulation promulgated by the commissioner pursuant to this Subsection shall14
require the insurer to itemize to the insured the premium savings based on the15
increase in the insured's deductible.16
* * *17
§1337. Homeowners' insurance deductibles applied to named-storms, hurricanes,18
and wind and hail deductibles; required notice to policyholders19
* * *20
D. (1) The commissioner of insurance shall promulgate rules and regulations21
pursuant to the Administrative Procedure Act establishing disclosure requirements22
with respect to the operation of any deductible in a homeowner's insurance policy23
which applies as a result of a named storm or hurricane. Such rules and regulations24
shall prescribe the form of a notice to be provided by an insurer to an insured. The25
notice shall explain in clear and plain language the amount of the deductible subject26
to Paragraph (A)(3) of this Section, the circumstances under which the deductible27
applies and any other matters which the commissioner, in his discretion, shall deem28
necessary or appropriate.29 HLS 14RS-109 ORIGINAL
HB NO. 549
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are additions.
(2) A separate deductible applicable to a homeowner's insurance policy shall1
not be approved by the commissioner unless the deductible is applicable only to2
losses incurred in a named storm or hurricane which causes wind speeds of one3
hundred twenty-five miles or greater per hour to occur within the state. 4
(3) The maximum deductible allowed shall not be greater than two percent5
and shall be stated on the policy in numerical terms.6
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Brossett HB No. 549
Abstract: Sets the maximum deductible that an insurer may charge a policyholder at two
percent of the value of the property being insured for claims made under a
homeowner's policy for losses incurred in a hurricane with wind speeds of 125 miles
or greater per hour, and requires insurers to provide policyholders disclosure notices
approved by the commissioner of insurance regarding the applicability of the
deductible.
Present law provides that insurers may charge a total deductible of up to 4% of the value of
the property being insured for named storms or hurricanes on a homeowner's policy of
insurance in effect for three years or longer under certain circumstances.
Proposed law provides instead that the maximum deductible that insurers may charge is 2%
of the value of the property being insured for named storms or hurricanes on a homeowner's
policy of insurance regardless of how long the policy has been in effect, under certain
circumstances.
Present law provides that an insurer may charge a separate deductible for losses incurred in
a named storm or hurricane.
Proposed law provides that an insurer may charge a separate deductible for losses incurred
in a named storm or hurricane which causes wind speeds of 125 miles or greater per hour
to occur within the state.
Proposed law requires that an insurer provide to each policyholder a notice approved by the
commissioner of insurance that explains to the policyholder the circumstances under which
the separate deductible applies.
(Amends R.S. 22:1333(D); Adds R.S. 22:1337(D))