HLS 23RS-896 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 569
BY REPRESENTATIVE THOMPSON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
INSURANCE: Provides relative to homeowners' insurance
1 AN ACT
2To amend and reenact R.S. 22:1265(D), (I), and (J) and 1333(C), (G), and (H) and to repeal
3 R.S. 22:1265(F) and (H) and 1333(D) and (F), relative to homeowners' insurance
4 policies; to provide with respect to property, casualty, and liability insurers' rights
5 for cancellation and nonrenewal of policies; to provide relative to policy deductibles
6 within designated locations; to provide relative to reentry into the homeowners'
7 insurance market with respect to insurers withdrawn from the market; to repeal
8 relative to certain filings of insurers to the commissioner of insurance; and to provide
9 for related matters.
10Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 22:1265(D), (I), and (J) and 1333(C), (G), and (H) are hereby
12amended and reenacted to read as follows:
13 §1265. Property, casualty, and liability insurance policies; cancellation and
14 nonrenewal provisions; nonrenewal for rate inadequacy; certain prohibitions
15 * * *
16 D.(1) No An insurer providing property, casualty, or liability insurance shall
17 not cancel or fail to renew a homeowner's policy of insurance or to increase the
18 policy deductible that has been in effect and renewed for more than three years
19 unless the cancellation or nonrenewal is based on nonpayment one or more of the
20 following reasons:
Page 1 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-896 ORIGINAL
HB NO. 569
1 (a) Nonpayment of premium,.
2 (b) fraud Fraud of the insured,.
3 (c) a A material change in the risk being insured,.
4 (d) two Two or more claims within a continuous three-year period of time
5 within the five years preceding the current policy renewal date, or if continuation of
6 such policy endangers the solvency of the insurer.
7 (e) Continuation of coverage on any one policy or group of policies
8 endangers the solvency of the insurer in this state.
9 (f) Inadequacy or insufficiency of the rate or premium for coverage after the
10 insurer has sought actuarially justified rate relief from the commissioner and such
11 rate relief has been rejected by the commissioner.
12 (g) Unrepaired damage or deteriorated condition to the property, including
13 any condition that creates a safety hazard on the property.
14 (2) This Subsection shall does not apply to an insurer that withdraws from
15 the homeowners' insurance market in this state or to nor to an insurer that takes either
16 of the following actions:
17 (a) Increases policy deductibles increased for all homeowners' insurance
18 policies in this state, or alternatively, increases policy deductibles for all
19 homeowners' insurance policies within a designated group of parishes identified on
20 a plan submitted to the commissioner.
21 (b) Nonrenews two percent or less of its total policies in force in this state
22 within a designated group of parishes identified on a plan submitted to the
23 commissioner.
24 (3) For the purposes of this Subsection, an incident shall be "incident" is
25 deemed a claim only when there is a demand for payment by the insured or the
26 insured's representative under the terms of the policy. A report of a loss or a
27 question relating to coverage shall does not independently establish a claim. As used
28 in this Subsection, the phrase "two or more claims within a continuous three-year
29 period of time within the five years preceding the current policy renewal date" shall
Page 2 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-896 ORIGINAL
HB NO. 569
1 does not include any loss incurred or arising from an "Act of God" incident which
2 is due directly to forces of nature and exclusively without human intervention.
3 * * *
4 I. Any authorized property and casualty insurer that avails itself of the
5 provisions of Subsection D of this Section relative to withdrawing from the
6 homeowners' insurance market may shall not issue any homeowners' insurance
7 coverage in this state during the five-year three-year period beginning on the date of
8 the discontinuation of the last homeowners' insurance coverage not so renewed. The
9 commissioner may, for good cause shown pursuant to a written request by the
10 insurer, permit the insurer to reenter the homeowners' insurance market prior to the
11 expiration of the five-year three-year period.
12 J. Any approved unauthorized property and casualty insurer that avails itself
13 of the provisions of Subsection D of this Section relative to withdrawing from the
14 homeowners' insurance market may shall not issue any homeowners' insurance
15 coverage in this state during the five-year three-year period beginning on the date of
16 the discontinuation of the last homeowners' insurance coverage not so renewed. The
17 commissioner may, for good cause shown pursuant to a written request by the
18 insurer, permit the insurer to reenter the homeowners' insurance market prior to the
19 expiration of the five-year three-year period.
20 * * *
21 §1333. Homeowner's insurance; insurer's nonrenewal without cause; inclusion in
22 insured's file prohibited; certain prohibitions
23 * * *
24 C.(1) No An insurer providing property, casualty, or liability insurance shall
25 not cancel or fail to renew a homeowner's policy of insurance or to increase the
26 policy deductible that has been in effect and renewed for more than three years
27 unless the cancellation or nonrenewal is based on nonpayment one or more of the
28 following reasons:
29 (a) Nonpayment of premium,.
Page 3 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-896 ORIGINAL
HB NO. 569
1 (b) fraud Fraud of the insured,.
2 (c) a A material change in the risk being insured,.
3 (d) two Two or more claims within a continuous three-year period of time
4 within the five years preceding the current policy renewal date, or if continuation of
5 such policy endangers the solvency of the insurer.
6 (e) Continuation of coverage on any one policy or group of policies
7 endangers the solvency of the insurer in this state.
8 (f) Inadequacy or insufficiency of the rate or premium for coverage after the
9 insurer has sought actuarially justified rate relief from the commissioner and such
10 rate relief has been rejected by the commissioner.
11 (g) Unrepaired damage or deteriorated condition to the property, including
12 any condition that creates a safety hazard on the property.
13 (2) This Subsection shall does not apply to an insurer that withdraws from
14 the homeowners' insurance market in this state or to nor to an insurer that takes either
15 of the following actions:
16 (a) Increases policy deductibles increased for all homeowners' insurance
17 policies in this state, or alternatively, increases policy deductibles for all
18 homeowners' insurance policies within a designated group of parishes identified on
19 a plan submitted to the commissioner.
20 (b) Nonrenews two percent or less of its total policies in force in this state
21 within a designated group of parishes identified on a plan submitted to the
22 commissioner.
23 (3) For the purposes of this Subsection, an incident shall be "incident" is
24 deemed a claim only when there is a demand for payment by the insured or the
25 insured's representative under the terms of the policy. A report of a loss or a
26 question relating to coverage shall does not independently establish a claim. As used
27 in this Subsection, the phrase "two or more claims within a continuous three-year
28 period of time within the five years preceding the current policy renewal date" shall
Page 4 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-896 ORIGINAL
HB NO. 569
1 does not include any loss incurred or arising from an "Act of God" incident which
2 is due directly to forces of nature and exclusively without human intervention.
3 * * *
4 G. Any authorized property and casualty insurer that avails itself of the
5 provisions of Subsection C of this Section relative to withdrawing from the
6 homeowners' insurance market may shall not issue any homeowners' insurance
7 coverage in this state during the five-year three-year period beginning on the date of
8 the discontinuation of the last homeowners' insurance coverage not so renewed. The
9 commissioner may, for good cause shown pursuant to a written request by the
10 insurer, permit the insurer to reenter the homeowners' insurance market prior to the
11 expiration of the five-year three-year period.
12 H. Any approved unauthorized property and casualty insurer that avails itself
13 of the provisions of Subsection C of this Section relative to withdrawing from the
14 homeowners' insurance market may shall not issue any homeowners' insurance
15 coverage in this state during the five-year three-year period beginning on the date of
16 the discontinuation of the last homeowners' insurance coverage not so renewed. The
17 commissioner may, for good cause shown pursuant to a written request by the
18 insurer, permit the insurer to reenter the homeowners' insurance market prior to the
19 expiration of the five-year three-year period.
20 Section 2. R.S. 22:1265(F) and (H) and 1333(D) and (F) are hereby repealed in their
21entirety.
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 569 Original 2023 Regular Session Thompson
Abstract: Modifies relative to property, casualty, and liability insurance providers with
respect to the cancellation and nonrenewal of policies, deductibles, and rights of such
insurers withdrawn from the homeowners' insurance market.
Present law (R.S. 22:1265 and 1333) prohibits issuers providing property, casualty, and
liability insurance from cancelling or nonrenewing a homeowner's policy or increasing a
policy deductible that has been in effect and renewed for more than 3 years, unless the
Page 5 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-896 ORIGINAL
HB NO. 569
insurer's cancellation or nonrenewal is based on several factors, including but not limited to
an insured's nonpayment of premiums, fraud of the insured, or multiple claims of the insured
within a certain period of time.
Proposed law retains present law but makes technical changes to the statutory placement of
present law.
Proposed law adds additional factors for which an insurer may cancel or nonrenew a policy,
including continuation of coverage that endangers the insurer's solvency, inadequacy or
insufficiency of the rate or premium for coverage when the insurer sought actuarially
justified rate relief from the commissioner of insurance and the commissioner rejected such
rate relief, or unrepaired damage or a deteriorated condition to the insured's property.
Present law does not apply to an insurer that withdraws from the homeowners' insurance
market in this state or to policy deductibles increased for all homeowners' policies in this
state.
Proposed law retains present law but adds that present law does not apply to an insurer that
increases policy deductibles for all homeowners' insurance policies within a designated
group of parishes identified on its plan submitted to the commissioner, nor to an insurer that
nonrenews 2% or less of its total policies in this state within a designated group of parishes
identified on its plan submitted to the commissioner.
Present law prohibits an authorized property and casualty insurer and an approved
unauthorized property and casualty insurer that withdraws from the homeowners' insurance
market from issuing homeowners' insurance policies in this state during the 5-year period
that commences on the date of discontinuation of the last homeowners' insurance coverage
nonrenewed. Further provides that if the insurer makes a written request to the
commissioner, the commissioner may, for good cause shown, permit the insurer to reenter
the homeowners' insurance market prior to the expiration of the 5-year period.
Proposed law reduces the suspension period from 5 years to 3 years and otherwise retains
present law.
Present law (R.S. 22:1265(F) and 1333(D)) authorizes an insurer to file with the
commissioner certain rating plans as a request to change the policy deductible to a total
deductible of not more than 4% of the value of property being insured for named storms or
hurricanes on a homeowner's policy that has been in effect for more than 3 years. Requires
the insurer to include in its filing the details of the insurer's plan to write new business in the
particular region or area of the state in which the new deductible will apply.
Present law requires the commissioner to base his approval on the insurer's commitment to
the writing of new business in the respective region or area in which the new deductible will
apply. Authorizes the commissioner to approve a filing that he determines is in the best
interest of policyholders and further authorizes the commissioner to subsequently rescind
approval of any filing if the insurer fails to write new business in accordance with the plan.
Present law provides that any business plan is considered proprietary or trade secret pursuant
to present law. Requires the commissioner to provide an annual report to the legislative
committees on insurance on the application and effectiveness of the provisions of present
law and requires the commissioner to promulgate regulations in accordance with the APA
setting forth the criteria for the filings he deems necessary to act on the insurer's request.
Present law requires the insurer to itemize to the insured the premium savings based on the
increase in the insured's deductible.
Proposed law repeals present law (R.S. 22:1265(F) and 1333(D)).
Page 6 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-896 ORIGINAL
HB NO. 569
Present law requires any company that makes a filing in accordance with present law (R.S.
22:1265(H) and 1333(F)) to reduce the rates paid by the individual homeowner by the
amount determined to be actuarially justified by the commissioner.
Proposed law repeals present law (R.S. 22:1265(H) and 1333(F)).
Proposed law makes technical changes.
(Amends R.S. 22:1265(D), (I), and (J) and 1333(C), (G), and (H); Repeals R.S. 22:1265(F)
and (H) and 1333(D) and (F))
Page 7 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.