HLS 201ES-83 ORIGINAL
2020 First Extraordinary Session
HOUSE BILL NO. 24
BY REPRESENTATIVE JAMES
INSURANCE COMMISSIONER: Provides relative to legislative authorization for any
waiver under the Omnibus Premium Reduction Act of 2020 (Item #40)
1 AN ACT
2To amend and reenact Section 8 of the Act that originated as Senate Bill No. 418 of the 2020
3 Regular Session of the Legislature of Louisiana, relative to the reduction of
4 automobile insurance rates; to provide for the authority of the commissioner of
5 insurance to relieve an insurer from reducing insurance premium rates; to require
6 legislative approval of any relief from reducing insurance premium rates; and to
7 provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. Section 8 of the Act that originated as Senate Bill No. 418 of the 2020
10Regular Session of the Legislature of Louisiana is hereby amended and reenacted to read as
11follows:
12 Section 8.(A) For policies of automobile insurance issued or renewed one
13 year following the effective date of this Act, each insurer shall file with the
14 commissioner of insurance for approval premium rates which actuarially reflect the
15 savings it anticipates as a result of this Act, which is presumed to be ten percent
16 lower for each impacted coverage, when compared to the premium rates in effect for
17 that coverage on the date of enactment. Each such insurer shall have the right to
18 request all or partial relief from the presumed roll-back amount of ten percent on
19 each impacted coverage, if it can demonstrate to the commissioner of insurance that
20 it has not experienced a sufficient reduction in loss costs to actuarially justify the full
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 201ES-83 ORIGINAL
HB NO. 24
1 amount of presumed savings of ten percent. Any filing with premium rates that
2 provides for the ten percent reduction or more for each impacted coverage shall be
3 deemed approved, if not disapproved, thirty days after filing. This Section does not
4 prohibit an increase for any individual insurance policy premium if the increase
5 results from an increase in the risk of loss.
6 (B) If the commissioner of insurance determines that an insurer is entitled
7 to full or partial relief from the presumed roll-back amount of ten percent on an
8 impacted coverage as provided by Paragraph A of this Section, such relief shall be
9 granted only upon approval by two-thirds of the members of the House Committee
10 on Insurance, the Senate Committee on Insurance, the House of Representatives, and
11 the Senate.
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)]
HB 24 Original 2020 First Extraordinary Session James
Abstract: Requires that any relief from a premium rate reduction required by the Omnibus
Premium Reduction Act of 2020 be submitted for approval by the members of the
House Committee on Insurance, the Senate Committee on Insurance, the House of
Representatives, and the Senate.
Present law (as provided in the Act that originated as Senate Bill No. 418 of the 2020
Regular Session) provides the following:
(1)For policies of automobile insurance issued or renewed one year following Jan. 1,
2021, each insurer shall file with the commissioner of insurance for approval of
premium rates which actuarially reflect the savings it anticipates as a result of
present law, which is presumed to be 10% lower for each impacted coverage, when
compared to the premium rates in effect for that coverage on Jan, 1, 2021.
(2)Each such insurer shall have the right to request all or partial relief from the
presumed roll-back amount of 10% on each impacted coverage, if it can demonstrate
to the commissioner of insurance that it has not experienced a sufficient reduction
in loss costs to actuarially justify the full amount of presumed savings of 10%.
Proposed law provides that if the commissioner of insurance determines that an insurer is
entitled to full or partial relief from the presumed roll-back amount of 10% on an impacted
coverage as provided by present law (as provided in the Act that originated as Senate Bill
No. 418 of the 2020 Regular Session), such relief shall be granted only upon approval by
two-thirds of the members of the House Committee on Insurance, the Senate Committee on
Insurance, the House of Representatives, and the Senate.
(Amends ยง8 of the Act that originated as SB No. 418 of the 2020 R.S.)
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.