HLS 14RS-5273 ORIGINAL
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Regular Session, 2014
HOUSE CONCURRENT RESOLUTI ON NO. 199
BY REPRESENTATIVE STOKES
INSURANCE CLAIMS: Requests the Louisiana Department of Insurance to study
prohibiting insurers from using claims that did not exceed the insured's deductible
to cancel coverage
A CONCURRENT RESOLUTI ON1
To urge and request the Louisiana Department of Insurance to conduct a study to determine2
whether R.S. 22:1265 permits an insurer to consider an insured's claim that does not3
exceed the insured's deductible to cancel coverage or raise the deductible; and if it4
is deemed that the statute allows an insurer to consider these claims, to develop an5
appropriate disclosure for the insurer to place on the declarations page of the policy6
to advise the insured of the consequences of filing a claim that does not exceed the7
deductible, and to report its findings and recommendations to the legislative8
committees on insurance.9
WHEREAS, R.S. 22:1265 provides that an insurer may cancel or fail to renew a10
homeowner's policy of insurance or to increase the policy deductible when the insured has11
made two or more claims within a period of three years; and12
WHEREAS, R.S. 22:1265 provides that an incident shall be deemed a claim when13
there is a demand for payment by the insured or the insured's representative under the terms14
of the homeowner's policy of insurance, but does not define what constitutes a demand for15
payment; and16
WHEREAS, R.S. 22:1265 does not explicitly state that an insurer shall actually pay17
money to the insured or on behalf of the insured before using the claim as one of the two18
claims within a period of three years as grounds for canceling or failing to renew a19
homeowner's policy of insurance or to increase the policy deductible.20 HLS 14RS-5273 ORIGINAL
HCR NO. 199
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THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby1
request the Department of Insurance to conduct a study to determine whether R.S. 22:12652
permits an insurer to consider an insured's claim that does not exceed the insured's3
deductible to cancel coverage or raise the policy's deductible.4
BE IT FURTHER RESOLVED that the Legislature of Louisiana requests that the5
Department of Insurance include in its study whether an insurer should be allowed to6
consider a claim on which it has paid no money to or on behalf of an insured as grounds for7
canceling or failing to renew a homeowner's policy of insurance or increasing the policy8
deductible of a homeowner's policy.9
BE IT FURTHER RESOLVED that the Legislature of Louisiana does hereby request10
that the Department of Insurance recommend possible amendments to R.S. 22:1265 based11
on the findings of this study, including a definition of a demand for payment and whether12
an insurer should be required to disclose to an insured in a prominent location on the policy's13
declarations page that making a claim on the policy on which the insurer pays no money to14
the insured will be deemed a demand for payment under the policy and the consequences of15
filing a claim that does not exceed the policy's deductible.16
BE IT FURTHER RESOLVED that such a study shall include a review of other17
states to determine if other states allow insurers to use claims that do not exceed the insured's18
deductible as grounds for canceling or failing to renew a homeowner's policy of insurance19
or raising the homeowner's deductible.20
BE IT FURTHER RESOLVED that such a study shall determine if prohibiting21
insurers from considering claims on which no payment is made either to the insured or on22
behalf of the insured as grounds for canceling or failing to renew a homeowner's policy of23
insurance or increasing the homeowner's deductible would have upon the willingness of24
insurers to continue writing homeowner's insurance policies in this state.25
BE IT FURTHER RESOLVED that the Legislature of Louisiana does hereby request26
that the Department of Insurance shall submit its findings from this study in the form of a27
report to the House Committee on Insurance and the Senate Committee on Insurance on or28
before January 15, 2015.29 HLS 14RS-5273 ORIGINAL
HCR NO. 199
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BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the1
commissioner of insurance.2
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)]
Stokes HCR No. 199
Urges and requests the Department of Insurance to conduct a study of whether insurers
should be allowed to consider claims on which no money has been paid by the insurer either
to the insured or on behalf of the insured as grounds for canceling or failing to renew a
homeowner's policy of insurance, for increasing the deductible for a homeowner's policy,
or for increasing the premium of an automobile insurance policy.