Provides relative to the Louisiana Citizens Property Insurance Corporation Policy Take-Out Program. (8/1/17)
The impact of SB 214 on state laws centers around the operational procedures of the Louisiana Citizens Property Insurance Corporation. By allowing selective offerings of in-force policies instead of a blanket approach, the bill gives the corporation enhanced decision-making powers. This is intended to better manage exposure to risks and potential losses, ultimately aiding in stabilizing the property insurance market in Louisiana, which has undergone pressures due to various economic factors and natural disasters.
Senate Bill 214, introduced by Senator Gary Smith, aims to amend the Louisiana Citizens Property Insurance Corporation Policy Take-Out Program. The bill proposes to allow the corporation to offer some or all of its in-force policies for removal to the voluntary market, rather than mandating it to offer all of its polices as required by current law. This proposed change allows for greater flexibility, with approvals needed from the governing body of the corporation before policies can be removed from the in-force pool and transferred to the voluntary market.
The sentiment around SB 214 appears to be generally supportive among stakeholders who are involved with insurance markets and regulatory bodies. Proponents of the bill argue that it creates a more responsive approach to market conditions, allowing the Louisiana Citizens Property Insurance Corporation to tailor their offerings based on risk assessments. However, there may be concerns among consumer advocacy groups regarding the potential impacts on policyholders and market accessibility, as it could lead to exclusions or limited choices for some insurance customers.
Despite the general support, notable points of contention may arise regarding consumer protection and the implications of having fewer policies available in the marketplace. Some critics may argue that this could lead to a reduced safety net for residents relying on the corporation for property insurance, especially in high-risk areas. The balance between operational flexibility for the corporation and the need to protect consumers remains a critical issue in the discussions surrounding SB 214.