HLS 201ES-84 ORIGINAL
2020 First Extraordinary Session
HOUSE BILL NO. 32
BY REPRESENTATIVE JAMES
INSURANCE/RATES: Provides relative to rate determinations based on risks classified by
the insured's credit information (Item #40)
1 AN ACT
2To amend and reenact R.S. 22:1454(A) and to repeal Subpart P of Part IV of Chapter 4 of
3 Title 22 of the Louisiana Revised Statutes of 1950, comprised of R.S. 22:1501
4 through 1514, relative to insurance rating standards and methods; to prohibit rate
5 classifications based on an insured's credit information; to repeal provisions
6 regarding the use of credit information; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 22:1454(A) is hereby amended and reenacted to read as follows:
9 ยง1454. Rating standards and methods
10 A. Rates shall not be inadequate or unfairly discriminatory in a competitive
11 market. Rates shall not be excessive, inadequate, or unfairly discriminatory in a
12 noncompetitive market. Risks may be classified using any criteria except that no
13 risk shall be classified on the basis of race, color, creed, or national origin, or the
14 insured's credit information.
15 * * *
16 Section 2. Subpart P of Part IV of Chapter 4 of Title 22 of the Louisiana Revised
17Statutes of 1950, comprised of R.S. 22:1501 through 1514, is hereby repealed in its entirety.
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 201ES-84 ORIGINAL
HB NO. 32
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 32 Original 2020 First Extraordinary Session James
Abstract: Prohibits risks classifications based on an insured's credit information when
determining rates.
Present law prohibits inadequate or unfairly discriminatory rates in a competitive market.
Present law prohibits rates from being excessive, inadequate, or unfairly discriminatory in
a noncompetitive market.
Present law authorizes risk classifications based on any criteria except race, color, creed, or
national origin.
Proposed law retains present law and further prohibits risk classifications based on a person's
credit information.
Present law regulates the use of credit information for personal insurance.
Proposed law repeals present law.
(Amends R.S. 22:1454(A); Repeals R.S. 22:1501-1514)
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.