HLS 14RS-5433 ORIGINAL
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Regular Session, 2014
HOUSE CONCURRENT RESOLUTI ON NO. 211
BY REPRESENTATIVE HARRISON
INSURANCE/HOMEOWNERS: Requests the Department of Insurance to study the issues
of the availability and affordability of homeowners' insurance in coastal and
intercoastal areas of the state
A CONCURRENT RESOLUTI ON1
To urge and request the Department of Insurance to study the issues of the availability and2
affordability of homeowners' insurance in the coastal and intercoastal areas of the3
state, particularly in light of the recent enactment of a state uniform construction4
code, by establishing a task force and to report its findings to the legislative5
committees on insurance.6
WHEREAS, premiums for homeowners' insurance coverage throughout the state7
have significantly increased, especially since Hurricane Katrina in 2005; and8
WHEREAS, homeowners' insurance premiums for insureds living in the coastal and9
intercoastal parishes are substantially higher than of those insureds living in other parishes10
throughout the state; and11
WHEREAS, the system for ratemaking is regulated by the Department of Insurance12
pursuant to the Louisiana Insurance Code; and13
WHEREAS, the purpose of rate regulation is to promote the public welfare by14
regulating insurance rates to the end that they shall not be excessive, inadequate, or unfairly15
discriminatory and to authorize and regulate cooperative action among insurers in16
ratemaking; and17 HLS 14RS-5433 ORIGINAL
HCR NO. 211
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WHEREAS, various standards and methods are used during the ratemaking process1
in determining whether or not to adjust the amount of a homeowner's insurance policy2
premium when a policy is renewed; and3
WHEREAS, in 2005, Act No. 12 of the First Extraordinary Session of the Louisiana4
Legislature, which established a state uniform construction code, to be administered by the5
Louisiana State Uniform Construction Code Council, was enacted; and 6
WHEREAS, at that time, it was asserted that if more homes in the state's coastal and7
intercoastal parishes were constructed or retrofitted to meet the requirements of the newly8
enacted state uniform construction code, insurers might be more inclined to write more9
homeowners' insurance policies in those areas and premiums for homeowners' insurance10
policies in those areas might become more available and affordable due to competition; and11
WHEREAS, despite the number of homes in the coastal and intercoastal parishes of12
this state which were subsequently constructed or retrofitted to meet the requirements of the13
state uniform construction code, to this date, for some residents in those areas, homeowners'14
insurance remains unavailable or unaffordable; and15
WHEREAS, House Bill No. 470 of the 2014 Regular Session of the Louisiana16
Legislature would have required insurers admitted to write homeowner's insurance in this17
state to provide homeowner's insurance coverage, including windstorm and hail coverage,18
on any residential structure that has been constructed or retrofitted in compliance with the19
State Uniform Construction Code; and 20
WHEREAS, House Bill No. 470 was referred to the House Committee on Insurance21
but was not reported by the committee for consideration by the full House of22
Representatives; and 23
WHEREAS, it is imperative to understand the ratemaking process and all24
information used by the insurance industry in order to better inform insureds of the reasoning25
behind the premiums for their homeowner's insurance policies, especially those insureds26
living in the coastal and instercoastal parishes.27
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby 28
urge and request the Department of Insurance to study the issues of the availability and29
affordability of homeowners' insurance in the coastal and intercoastal areas of the state,30 HLS 14RS-5433 ORIGINAL
HCR NO. 211
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particularly in light of the recent enactment of a state uniform construction code, by1
establishing a task force.2
BE IT FURTHER RESOLVED that the membership of such task shall be as follows:3
(1)The state's commissioner of insurance or his designee.4
(2)The chief actuary for the Department of Insurance or his designee.5
(3)The deputy commissioner for the Office of Property and Casualty within the6
Department of Insurance or his designee. 7
(4)A representative from the Louisiana Citizens Property Insurance Corporation.8
(5)A representative from State Farm Fire and Casualty Company.9
(6)A representative from Allstate Indemnity Company.10
(7)A representative from Louisiana Farm Bureau Mutual Insurance Company.11
(8)A representative from Liberty Mutual Fire Insurance Company.12
(9)A representative from the Property and Casualty Insurance Association of13
America.14
(10)A representative from the American Insurance Association.15
(11)A representatives from the Louisiana Insurers' Conference. 16
(12)A representative from the Independent Insurance Agents and Brokers of17
Louisiana.18
(13)A representative from the Professional Insurance Agents Association of19
Louisiana. 20
(14)A representative from the Louisiana State Uniform Construction Code21
Council.22
(15)A representative from the Louisiana State Licensing Board for Contractors.23
BE IT FURTHER RESOLVED that commissioner of insurance shall notify the24
various organizations nominating members of the task force, that the names of such25
nominees shall be submitted to the commissioner no later than July 1, 2014, and that the26
commissioner shall convene the first meeting of the task force no later than August 1, 2014.27
BE IT FURTHER RESOLVED that the commissioner of insurance shall designate28
the chairperson of the task force from its membership.29 HLS 14RS-5433 ORIGINAL
HCR NO. 211
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BE IT FURTHER RESOLVED that the task force shall provide for the manner and1
frequency of its meetings at its first meeting and shall be staffed by the Department of2
Insurance.3
BE IT FURTHER RESOLVED that the task force shall meet as necessary, shall4
report its findings to the Department of Insurance no later than December 31, 2014, and5
shall terminate upon the date of submission of its report or upon December 31, 2014,6
whichever occurs first.7
BE IT FURTHER RESOLVED that the Department of Insurance shall submit its8
findings from the study by the task force in the form of a report, including any9
recommendations for changes to the laws, regulations, and procedures governing the10
ratemaking process, to the House Committee on Insurance and the Senate Committee on11
Insurance on or before January 15, 2015.12
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the13
commissioner of insurance.14
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)]
Harrison HCR No. 211
Urges and requests the Department of Insurance to conduct a study of the issues of the
availability and affordability of homeowners' insurance in the coastal and intercoastal areas
of the state, particularly in light of the recent enactment of a state uniform construction
code, by establishing a task force and to report findings and recommendations to the
legislative committees on insurance on or before Jan. 1, 2015.