HLS 23RS-961 ORIGINAL
2023 Regular Session
HOUSE CONCURRENT RESOL UTION NO. 125
BY REPRESENTATIVE KERNER
INSURANCE: Memorializes the United States Congress to support passage of the Flood
Insurance Affordability Act and the Risk Rating 2.0 Transparency Act
1 A CONCURRENT RESOL UTION
2To memorialize the United States Congress to take such actions as are necessary to pass the
3 Flood Insurance Affordability Act and the Risk Rating 2.0 Transparency Act to aid
4 citizens who reside in the coastal parishes of Louisiana with the financial burden of
5 flood insurance.
6 WHEREAS, for years, the state of Louisiana has been at the heart of an insurance
7crisis that has led to homeowners in the coastal parishes of Louisiana being obliged to pay
8exorbitant, excessive, and expensive insurance premiums; and
9 WHEREAS, in August of 2020, Hurricane Laura struck the state of Louisiana. The
10Department of Insurance reported more than one hundred seventy-seven thousand residential
11property claims. As a result of the catastrophic hurricane and property damage, the following
12coastal parishes were offered Individual Assistance from the Federal Emergency
13Management Agency (FEMA): Acadia, Calcasieu, Cameron, Jefferson Davis, and
14Vermillion; and
15 WHEREAS, in October of 2020, Hurricane Delta struck the state of Louisiana. The
16Department of Insurance reported more than eighty-nine thousand residential property
17claims after Hurricane Delta. As a result, the following coastal parishes were offered
18Individual Assistance from FEMA: Acadia, Calcasieu, Cameron, Iberia, Jefferson Davis,
19Lafayette, Saint Martin, and Vermilion; and
20 WHEREAS, in October of 2020, Hurricane Zeta struck the state of Louisiana. The
21Department of Insurance reported more than fifty-six thousand residential property claims
Page 1 of 4 HLS 23RS-961 ORIGINAL
HCR NO. 125
1after Hurricane Zeta. As a result of Hurricane Zeta's severe impact, the following coastal
2parishes were offered Individual Assistance from FEMA: Jefferson, Lafourche, Orleans,
3Plaquemines, St. Bernard, and Terrebonne; and
4 WHEREAS, in August of 2021, Hurricane Ida struck the state of Louisiana. The
5Department of Insurance reported more than four hundred seventy-eight thousand residential
6property claims. As a result of Hurricane Ida's impact on the southeast region of Louisiana,
7the following coastal parishes were offered Individual Assistance from FEMA: Ascension,
8Assumption, East Baton Rouge, Iberia, Iberville, Jefferson, Lafourche, Livingston, Orleans,
9Plaquemines, Saint Bernard, Saint Charles, Saint James, Saint John the Baptist, Saint Martin,
10Saint Mary, Saint Tammany, Tangipahoa, Terrebonne, Washington, and West Baton Rouge;
11and
12 WHEREAS, FEMA updated the National Flood Insurance Program (NFIP) risk
13rating methodology through the implementation of a new pricing methodology called Risk
14Rating 2.0; and
15 WHEREAS, Risk Rating 2.0 leverages the insurance industry's best practices and
16cutting-edge technology to empower FEMA to deliver rates that are actuarially justified,
17equitable, easier to understand, and that better reflect a property's flood risk; and
18 WHEREAS, according to FEMA's "Risk Rating 2.0 Fact Sheet", FEMA contends
19that it undertook Risk Rating 2.0 because it is a transformational leap forward; and
20 WHEREAS, FEMA's "Risk Rating 2.0 Fact Sheet" suggests that Risk Rating 2.0
21empowers its agency to set rates that are impartial, fair, and actuarially justified, leading to
22rate increases and decreases that are equitable, and equipping the agency with the tools to
23address rating disparities by incorporating more flood risk variables that include flood
24frequency, multiple flood rates, and the distance to a water source along with property
25characteristics such as elevation and the cost to rebuild; and
26 WHEREAS, the Risk Rating 2.0 Transparency Act, introduced on March 1, 2023 in
27the One Hundred Eighteenth United States Congress, by Senator John Kennedy of Louisiana
28and cosponsored by Senator Cindy Hyde-Smith of Mississippi, requires FEMA to publish
29all data and methods used to prescribe chargeable premium rates for structures eligible for
30NFIP coverage; and
Page 2 of 4 HLS 23RS-961 ORIGINAL
HCR NO. 125
1 WHEREAS, the Flood Insurance Affordability Act, also introduced on March 1,
22023 in the One Hundred Eighteenth United States Congress, by Senator John Kennedy of
3Louisiana and cosponsored by Senator Cindy Hyde-Smith of Mississippi, caps annual
4residential flood insurance premium insurance at nine percent instead of the current eighteen
5percent; and
6 WHEREAS, the Risk Rating 2.0 Transparency Act requires FEMA to create an
7online database that is available to policyholders under NFIP that provides each policyholder
8with information regarding the chargeable premium rate for the applicable property; and
9 WHEREAS, the Risk Rating 2.0 Transparency Act requires FEMA to complete and
10publish a comprehensive assessment of the economic and social impacts of implementing
11Risk Rating 2.0; and
12 WHEREAS, the Risk Rating 2.0 Transparency Act requires FEMA to publish, for
13every county or parish in the United States, the distribution of chargeable premium rates
14showing the median, mean, lower and upper quartiles, maximum amount, and minimum
15amount of chargeable premium rates; and
16 WHEREAS, although FEMA states that Risk Rating 2.0 is for the economic
17advancement of the insurance industry, the Legislature of Louisiana has concerns with the
18program; and
19 WHEREAS, the Legislature of Louisiana believes that Risk Rating 2.0 may lack
20transparency of data inputs and result in elevated structures seeing higher premiums; and
21 WHEREAS, the Legislature of Louisiana fears that Risk Rating 2.0 may result in an
22inability to predict flood insurance rates for new or code compliant structures and there may
23be a lack of access to data beyond the first year of the program; and
24 WHEREAS, it is the intention of the Legislature of Louisiana to ensure that
25homeowners who reside in the coastal parishes of the state of Louisiana are given fair,
26equitable, actuarially justified, and affordable flood insurance.
27 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
28memorialize the United States Congress to take such actions as are necessary to pass the
29Flood Insurance Affordability Act and the Risk Rating 2.0 Transparency Act to assist and
30benefit the citizens of the coastal parishes in the state of Louisiana.
Page 3 of 4 HLS 23RS-961 ORIGINAL
HCR NO. 125
1 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
2presiding officers of the Senate and the House of Representatives of the Congress of the
3United States of America and to each member of the Louisiana congressional delegation.
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)]
HCR 125 Original 2023 Regular Session Kerner
Memorializes the U.S. Congress to take such actions necessary to pass the Flood Insurance
Affordability Act and the Risk Rating 2.0 Transparency Act.
Page 4 of 4