HLS 23RS-896 ENGROSSED
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) and 1333(C) and to repeal R.S. 22:1265(F) and (H)
3 and 1333(D) and (F), relative to homeowners' insurance policies; to provide with
4 respect to property, casualty, and liability insurers' rights for cancellation and
5 nonrenewal of policies; to repeal relative to certain filings of insurers to the
6 commissioner of insurance; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 22:1265(D) and 1333(C) are hereby amended and reenacted to read
9as follows:
10 §1265. Property, casualty, and liability insurance policies; cancellation and
11 nonrenewal provisions; nonrenewal for rate inadequacy; certain prohibitions
12 * * *
13 D. No An insurer providing property, casualty, or liability insurance shall not
14 cancel or fail to renew a homeowner's policy of insurance or to increase the policy
15 deductible that has been in effect and renewed for more than three years unless based
16 on nonpayment of premium, fraud of the insured, a material change in the risk being
17 insured, two or more claims within a continuous three-year period of time within the
18 five years preceding the current policy renewal date, or if continuation of such policy
19 endangers the solvency of the insurer. This Subsection shall does not apply to an
20 insurer that withdraws from the homeowners' insurance market in this state or to
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CODING: Words in struck through type are deletions from existing law; words underscored
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HB NO. 569
1 modification of policy deductibles increased for all homeowners' insurance policies
2 in this state. For the purposes of this Subsection, an incident shall be is deemed a
3 claim only when there is a demand for payment by the insured or the insured's
4 representative under the terms of the policy. A report of a loss or a question relating
5 to coverage shall does not independently establish a claim. As used in this
6 Subsection, the phrase "two or more claims within a continuous three-year period of
7 time within the five years preceding the current policy renewal date" shall does not
8 include any loss incurred or arising from an "Act of God" incident which is due
9 directly to forces of nature and exclusively without human intervention.
10 * * *
11 §1333. Homeowner's insurance; insurer's nonrenewal without cause; inclusion in
12 insured's file prohibited; certain prohibitions
13 * * *
14 C. No An insurer providing property, casualty, or liability insurance shall not
15 cancel or fail to renew a homeowner's policy of insurance or to increase the policy
16 deductible that has been in effect and renewed for more than three years unless based
17 on nonpayment of premium, fraud of the insured, a material change in the risk being
18 insured, two or more claims within a continuous three-year period of time within the
19 five years preceding the current policy renewal date, or if continuation of such policy
20 endangers the solvency of the insurer. This Subsection shall does not apply to an
21 insurer that withdraws from the homeowners' insurance market in this state or to
22 modification of policy deductibles increased for all homeowners' insurance policies
23 in this state. For the purposes of this Subsection, an incident shall be is deemed a
24 claim only when there is a demand for payment by the insured or the insured's
25 representative under the terms of the policy. A report of a loss or a question relating
26 to coverage shall does not independently establish a claim. As used in this
27 Subsection, the phrase "two or more claims within a continuous three-year period of
28 time within the five years preceding the current policy renewal date" shall does not
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CODING: Words in struck through type are deletions from existing law; words underscored
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HB NO. 569
1 include any loss incurred or arising from an "Act of God" incident which is due
2 directly to forces of nature and exclusively without human intervention.
3 * * *
4 Section 2. R.S. 22:1265(F) and (H) and 1333(D) and (F) are hereby repealed in their
5entirety.
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 Engrossed 2023 Regular Session Thompson
Abstract: Modifies relative to property, casualty, and liability insurance providers with
respect to the cancellation and nonrenewal of policies and policy deductibles.
Present law (R.S. 22:1265(D) and 1333(C)) prohibits insurers 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 certain
circumstances apply.
Proposed law deletes an insurer's present law prohibition against increasing deductibles for
homeowners' policies in effect and renewed for more than 3 years.
Present law provides that the present law prohibition does not apply to an insurer that
increases policy deductibles for all homeowners' insurance policies in this state
Proposed law amends to provide that the present law prohibition does not apply to
modifications of policy deductibles for homeowners' insurance policies.
Present law (R.S. 22:1265(F) and 1333(D)) authorizes an insurer to file with the
commissioner of insurance 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.
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HB NO. 569
Proposed law repeals present law (R.S. 22:1265(F) and 1333(D)).
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) and 1333(C); Repeals R.S. 22:1265(F) and (H) and 1333(D) and
(F))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the
original bill:
1. Delete the present law prohibition against insurers increasing deductibles for
homeowners' policies in effect and renewed for more than 3 years.
2. Provide that present law does not apply to modifications of policy deductibles for
homeowners' insurance policies.
3. Retain certain present law provisions.
4. Make technical changes.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.