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 451 Engrossed 2021 Regular Session Davis
Abstract: Provides for discounts and insurance rate reductions for residential and commercial
buildings built to, or retrofitted to, reduce the threat of loss due to windstorm events.
Present law provides that any insurer required to submit rates and rating plans to the commissioner
of insurance shall provide an actuarially justified discount, credit, rate differential, adjustment in
deductible, or any other adjustment to reduce the insurance premium to insureds who build or retrofit
a structure to comply with the requirements of the State Uniform Construction Code.
Proposed law retains present law and provides that insurers required to submit rates and rating plans
to the commissioner shall comply with the requirements of the State Uniform Construction Code or
the Institute for Business and Home Safety.
Proposed law provides that after July 1, 2022, all insurers required to submit rating plans to the
commissioner may, if actuarially justified, provide credits and discounts in compliance with the
fortified home and fortified commercial standards created by the Institute for Business and Home
Safety.
Proposed law provides that any homeowner currently receiving discounts under present law may opt
to maintain discounts offered prior to July 1, 2022, so long as the homeowner continues to meet the
requirements to maintain such discounts, in lieu of the discount provided in present law.
Proposed law provides that to obtain a credit or discount provided in proposed law, any insurable
property located in this state may be certified as constructed in accordance with the fortified home
or fortified commercial standards provided by the Institute for Business and Home Safety.
Proposed law provides that an insurable property shall be certified as in conformance with the
fortified home or fortified commercial standards only after inspection and certification by an Institute
for Business and Home Safety certified inspector.
Proposed law provides that an owner of insurable property claiming a credit or discount shall
maintain and provide certification records and construction records for which it seeks a discount.
Proposed law provides that an owner of insurable property claiming a credit or discount shall
maintain the Institute for Business and Home Safety certification documents. The certification shall
be presented to the insurer or potential insurer of a property owner before the adjustment becomes
effective for the insurable property along with any other necessary records. Proposed law provides that the credit or discount shall apply only to policies that provide wind
coverage and may apply to the portion of the premium for wind coverage or to the total premium,
if the insurer does not separate out the premium for wind coverage in the rate filing.
Proposed law provides that the records required in proposed law are subject to audit by the
commissioner.
Proposed law provides that nothing in proposed law shall prohibit insurers from offering additional
adjustments in deductible, other credit rate differentials, or a combination thereof.
Proposed law specifies that for the purposes of proposed law, insurable property shall include
single-family residential property, commercial property, modular homes, and manufactured homes
that may be retrofitted.
Proposed law makes technical changes.
(Amends R.S. 22:1483(A) and (C); Adds R.S. 22:1483(D))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the original bill:
1. Make technical changes.
2. Allow insurers required to submit rates and rating plans to the commissioner to either
comply with the requirements of the State Uniform Construction Code or the Institute
for Business and Home Safety.
3. Make the application of the credits and discounts by insurers in present law (R.S.
22:1483) permissive, rather than mandatory.