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Regular Session, 2014
HOUSE BILL NO. 909
BY REPRESENTATIVE LEOPOLD
INSURANCE: Provides for the Property Insurance Clarity Act
AN ACT1
To amend and reenact R.S. 44:4.1(B)(11) and to enact R.S. 22:1488, relative to disclosures2
by homeowners insurers; to require insurers authorized to issue homeowner's3
policies in Louisiana to provide policy and premium information; to provide for the4
commissioner of insurance publishing aggregate information on homeowner's5
policies in force and the direct incurred losses of insurers; to provide for the6
commissioner of insurance publishing a description of the actuarial model used for7
homeowner's properties risk and other related data; to provide penalties for8
noncompliance by insurers; to provide for an exemption from the Public Records9
Law; and to provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 22:1488 is hereby enacted to read as follows: 12
§1488. Homeowner's insurance clarity; publication of aggregate data; penalties13
A.(1)(a) Each insurance company authorized to write homeowner's insurance14
in this state shall annually submit to the commissioner, commencing on or before15
February 1, 2015, for homeowner's insurance policies, the total amount of direct paid16
losses reported by peril less all deductibles, the number of policies written, and the17
direct written premiums for the prior calendar year. The insurance company shall18
report the computations to the commissioner by zip code and parish. The19
information received by the commissioner shall be aggregated across all insurance20 HLS 14RS-1415 ENGROSSED
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companies collectively and the aggregated totals shall be arranged by zip code and1
parish.2
(b) "Homeowner's insurance" as used in this Section shall also include3
condominium insurance, residential fire insurance, renter's and tenant's insurance,4
and mobile home and manufactured housing insurance.5
(c) Creditor-placed homeowner's insurance, condominium association6
insurance, and commercial insurance are excluded from the requirements of this7
Section.8
(2) The commissioner shall compile and publish on the Department of9
Insurance website by March first annually the aggregated total of the data provided10
in Paragraph (1) of this Subsection by zip code and parish for the prior calendar year.11
(3) Each insurance company authorized to write homeowner's insurance in12
this state shall annually submit to the commissioner, commencing on or before13
February 1, 2015, computations of the direct paid losses by peril, the number of14
policies written, and direct written premiums, by zip code and parish, by calendar15
year for the prior calendar year, for each of the following perils:16
(a) Fire.17
(b) Wind and hail.18
(c) Catastrophe wind and hail per data call by the commissioner.19
(d) Flood.20
(e) All other perils.21
(4) The commissioner shall post a link to the data on the Department of22
Insurance website in a prominent position on the website's home page.23
B. The commissioner shall post on the Department of Insurance website a24
general description of the ratemaking methodology that the commissioner permits25
insurance companies to use in establishing their homeowner's insurance rates.26
C.(1) Commencing on February 1, 2015, each insurance company authorized27
to write homeowner's insurance in this state shall provide the information required28
under Subsection A of this Section, commencing with the 2004 calendar year.29 HLS 14RS-1415 ENGROSSED
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Voluntary submissions of the information required by Subsection A of this Section1
for calendar years prior to 2004 may be submitted and shall be compiled and posted2
by the commissioner in the same manner.3
(2) The commissioner shall compile the aggregated totals for each calendar4
year submitted and publish the aggregated totals on the Department of Insurance5
website pursuant to Paragraph (A)(2) of this Section.6
D.(1) Upon written request of an insurance company, the commissioner may7
modify or extend for an additional time period, for good cause shown, the reporting8
requirements of this Section. Any modifications or extensions granted by the9
commissioner shall be noted on the Department of Insurance website, along with a10
projected date of compliance. Good cause may include but is not limited to either11
of the following:12
(a) The insurance company's limited percentage of the total homeowner's13
insurance market in this state.14
(b) The undue burden of compiling and reporting computation, data, and15
other information required by this Section due to the manner, format, or method in16
which the insurance company has stored the computations, data, or other information17
required.18
(2) Any insurance company that fails to timely comply with the reporting19
requirements of this Section shall be given notice by the commissioner of the failure20
and provided thirty days to comply. Any insurance company that fails to comply on21
or before the thirtieth day, unless modified or extended by the commissioner, shall22
be fined ten thousand dollars per month by the commissioner until the date of23
compliance. Any funds collected pursuant to this Paragraph shall be deposited into24
the state general fund. These fines shall not be waived or reduced except by an act25
of the legislature.26
(3) The commissioner shall waive or modify the reporting requirements of27
this Section if an insurance company meets any of the following criteria:28
(a) Does not store the computations, data, or other information required.29 HLS 14RS-1415 ENGROSSED
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(b) Is required to materially upgrade, modify, redevise, or reprogram1
computer systems to provide the computations, data, or other information required.2
(c) Is required to significantly divert limited resources to provide the3
computations, data, or other information required.4
E. Any information reported to the commissioner by an insurer as required5
by this Section shall be treated as confidential. Use of the information is limited6
solely to the purposes authorized in this Section, and the information submitted by7
each insurer pursuant to this Section shall be exempt from the Public Records Law,8
R.S. 44:1 et seq.9
F. Each report submitted by an insurance company pursuant to this Section10
shall include a notarized affidavit executed by an executive of that company attesting11
to the validity of the data reported.12
F. The commissioner may issue such rules and regulations as may be13
necessary or proper to carry out the provisions of this Section. Such rules and14
regulations shall be promulgated and adopted in accordance with the Administrative15
Procedure Act, R.S. 49:950 et seq.16
Section 2. R.S. 44:4.1(B)(11) is hereby amended and reenacted to read as follows:17
§4.1. Exceptions18
* * *19
B. The legislature further recognizes that there exist exceptions, exemptions,20
and limitations to the laws pertaining to public records throughout the revised21
statutes and codes of this state. Therefore, the following exceptions, exemptions, and22
limitations are hereby continued in effect by incorporation into this Chapter by23
citation:24
* * *25
(11) R.S. 22.2, 14, 31(B), 42.1, 88, 244, 461, 572, 572.1, 574, 618, 732, 752,26
753, 771, 1019.2(B)(5)(a), 1203, 1460, 1466, 1488, 1546, 1644, 1656, 1723, 1927,27
1929, 1983, 1984, 2036, 230328
* * *29 HLS 14RS-1415 ENGROSSED
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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)]
Leopold HB No. 909
Abstract: Requires homeowner's insurers to provide data on direct incurred losses, number
of policies in force, and direct earned premiums to the commissioner of insurance
to aggregate and publish on the Dept. of Insurance website.
Proposed law requires that insurance companies writing homeowner's policies annually
submit to the commissioner data on their total direct incurred losses, number of policies in
force, and direct earned premiums by zip code and parish for the prior calendar year. Further
requires that the same data be submitted dating back to the calendar year 2004.
Proposed law requires the commissioner to aggregate the data and publish aggregated yearly
totals by zip code and parish on the Dept. of Insurance website.
Proposed law also requires the commissioner to publish on the department's website a
general description of the ratemaking methodology insurance companies are allowed to use
in establishing homeowner's insurance rates.
Proposed law provides that the commissioner may issue exemptions from the reporting
requirements to companies that do not store the requested information, or if meeting the
requirements would impose an undue burden.
Proposed law provides a penalty of $10,000 per month for any company that fails to timely
comply with the reporting requirements, and further provides that the reports submitted must
be notarized and executed by an executive of the company attesting to the validity of the data
reported.
Proposed law provides that the commissioner may issue rules and regulations to implement
this Section.
Proposed law provides that the data provided by each insurer is confidential and exempt
from the Public Records Law.
(Amends R.S. 44:4.1(B)(11); Adds R.S. 22:1488)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Insurance to the original
bill.
1. Made technical changes.