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Regular Session, 2014
HOUSE CONCURRENT RESOLUTI ON NO. 199
BY REPRESENTATIVE STOKES
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
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby21
request the Department of Insurance to conduct a study to determine whether R.S. 22:126522
permits an insurer to consider an insured's claim that does not exceed the insured's23
deductible to cancel coverage or raise the policy's deductible.24
BE IT FURTHER RESOLVED that the Legislature of Louisiana requests that the25
Department of Insurance include in its study whether an insurer should be allowed to26 ENROLLEDHCR NO. 199
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consider a claim on which it has paid no money to or on behalf of an insured as grounds for1
canceling or failing to renew a homeowner's policy of insurance or increasing the policy2
deductible of a homeowner's policy.3
BE IT FURTHER RESOLVED that the Legislature of Louisiana does hereby request4
that the Department of Insurance recommend possible amendments to R.S. 22:1265 based5
on the findings of this study, including a definition of a demand for payment and whether6
an insurer should be required to disclose to an insured in a prominent location on the policy's7
declarations page that making a claim on the policy on which the insurer pays no money to8
the insured will be deemed a demand for payment under the policy and the consequences of9
filing a claim that does not exceed the policy's deductible.10
BE IT FURTHER RESOLVED that such a study shall include a review of other11
states to determine if other states allow insurers to use claims that do not exceed the insured's12
deductible as grounds for canceling or failing to renew a homeowner's policy of insurance13
or raising the homeowner's deductible.14
BE IT FURTHER RESOLVED that such a study shall determine if prohibiting15
insurers from considering claims on which no payment is made either to the insured or on16
behalf of the insured as grounds for canceling or failing to renew a homeowner's policy of17
insurance or increasing the homeowner's deductible would have upon the willingness of18
insurers to continue writing homeowner's insurance policies in this state.19
BE IT FURTHER RESOLVED that the Legislature of Louisiana does hereby request20
that the Department of Insurance may submit its findings from this study in the form of a21
report to the House Committee on Insurance and the Senate Committee on Insurance on or22
before January 15, 2015.23
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the24
commissioner of insurance.25
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE