Requests the Louisiana Department of Insurance to study prohibiting insurers from using claims that did not exceed the insured's deductible to cancel coverage
Impact
The proposed study will examine the statutory language and practices surrounding homeowner's insurance claims, particularly focusing on the criteria that insurers use to cancel policies or raise deductibles. A determination that insurers can use minor claims negatively impacts insured homeowners by making them wary of filing legitimate claims, as they could face retaliation in the form of increased premiums or policy cancellations without having received reimbursement for their claims.
Summary
House Concurrent Resolution 199 (HCR199) calls for a study by the Louisiana Department of Insurance regarding the implications of insurance companies using claims that do not exceed an insured's deductible as grounds for canceling or increasing the deductible of a homeowner's policy. Specifically, the resolution aims to clarify whether current Louisiana law, R.S. 22:1265, allows insurers to consider such claims and to explore potential amendments to ensure fair practices in insurance coverage decisions.
Sentiment
The sentiment around HCR199 appears to be supportive among legislators who recognize the right of homeowners to seek insurance coverage without fear of punitive actions for filing claims. There was a unanimous vote (91-0) in the House in favor of the resolution, indicating strong bipartisan support to address the potential ambiguity in the law. However, there may be concerns from the insurance industry about the implications of restricting their ability to manage risk through the analysis of claims.
Contention
One notable point of contention is whether insurers should be allowed to consider claims that were never paid out—which do not involve any actual reimbursement to the insured—as a valid basis for unfavorable actions on homeowner's policies. The outcomes of this study could lead to significant changes in how insurance claims are processed and the associated consumer protections, providing clarity on the definitions involved while balancing the concerns of insurers regarding financial sustainability.
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 Department of Insurance to study the effects on insureds and healthcare providers of the increasing amount of deductibles and coinsurance obligations required by many health insurance products being offered to Louisiana citizens
Requests the Department of Revenue and the Department of Natural Resources, in consultation with the Legislative Auditor, to take all action necessary to collect oil and gas severance tax and mineral royalties and to establish procedures to verify the accuracy of payments and refunds thereof, all to be monitored by the Legislative Auditor and reported to the legislature. (OR1 SEE FISC NOTE GF RV)
Requests DHH to study the most effective means to ensure the proper utilization of inhalers by school nurses and report to the Senate and House Committees on Health and Welfare.
Directs the Department of Health and Hospitals to declare youth violence a public health epidemic and the Department of Education to establish a statewide trauma-informed education program.
Requests the Louisiana Department of Insurance to study amending R.S. 22:1295, uninsured motorist coverage, to clarify uninsured motorist rejection form rules
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