ENROLLED
2019 Regular Session
HOUSE RESOLUTION NO. 255
BY REPRESENTATIVE JORDAN
A RESOLUTION
To urge and request the Louisiana Department of Insurance to study the desirability and
feasibility of the state regulation of private market flood insurance and to report the
findings of the study to the legislative committees on insurance.
WHEREAS, flood insurance protects home and business owners from specific flood
events; and
WHEREAS, flood insurance is available through the National Flood Insurance
Program and private insurers, including surplus lines insurers; and
WHEREAS, a standard homeowner's or renter's policy does not provide coverage for
damages sustained from a flood; and
WHEREAS, the National Flood Insurance Program is a federal program that
provides flood insurance to property owners, renters, and businesses and is the main provider
of residential flood insurance in the United States; and
WHEREAS, Louisiana is the largest recipient of funds from the National Flood
Insurance Program, and nearly half a million Louisiana residents are insured through the
program; and
WHEREAS, National Flood Insurance Program policies provide coverage for one
building per policy and ten percent for a detached garage, but do not provide coverage for
detached structures, basements, and some other structures; and
WHEREAS, surplus lines insurers are required to be registered with the Louisiana
Department of Insurance but are not required to submit to rate and policy review and are not
subject to some Louisiana insurance laws; and
WHEREAS, the Louisiana Insurance Guaranty Association, which pays claims if a
standard insurance company becomes insolvent, does not cover policies written by surplus
lines insurers; and
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WHEREAS, the private flood insurance market is small and there is a large flood
insurance protection gap in the United States; and
WHEREAS, there is increased interest from private insurers to provide flood
protection, and an increase in private flood insurance could give policyholders more choices
for coverage and reduce premiums; and
WHEREAS, the purpose of the Louisiana Insurance Code, comprising Title 22 of the
Louisiana Revised Statutes of 1950, is to regulate the insurance industry in all of its phases;
and
WHEREAS, there is currently no regulatory framework within the Louisiana
Insurance Code specifically for private flood insurance; and
WHEREAS, the Department of Insurance works diligently to balance the needs of
insurance consumers with the insurance industry's need to run a competitive business; and
WHEREAS, as a regulator, the department enforces the laws that provide a fair and
stable marketplace with transparent rules so one insurer does not have an unfair competitive
advantage over other insurers.
THEREFORE, BE IT RESOLVED that the House of Representatives of the
Legislature of Louisiana does hereby urge and request the Department of Insurance to study
the desirability and feasibility of the state regulation of private market flood insurance.
BE IT FURTHER RESOLVED that, in carrying out the purposes of this Resolution,
the Department of Insurance shall engage and solicit input, recommendations, and advice
from all interested parties and stakeholders.
BE IT FURTHER RESOLVED that, in conducting the study required by this
Resolution, the Department of Insurance shall survey the laws and best practices in other
states.
BE IT FURTHER RESOLVED that the department shall submit a written report of
its findings and recommendations, including proposed legislation if necessary, to the House
Committee on Insurance and Senate Committee on Insurance no later than February 1, 2020.
The department may render objective, fiscally feasible recommendations to the legislature
for implementation of policies that could be adopted by the state.
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BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
commissioner of insurance.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
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