Authorizes the Louisiana Property Insurance Corporation to enter into a cooperative endeavor agreement with the commissioner of insurance for certain projects. (Item #15) (gov sig) (OR NO IMPACT See Note)
Impact
The legislation modifies existing statutes relating to the Louisiana Citizens Property Insurance Corporation, particularly by expanding its scope to include direct engagement with the insurance commissioner. By allowing these cooperative agreements, SB6 seeks to streamline processes that may lead to better services or benefits for policyholders. This change is expected to enhance the corporation’s ability to respond to the insurance market needs and improve overall insurance coverage effectiveness within the state.
Summary
Senate Bill 6, introduced by Senator Talbot, aims to enhance the operational capabilities of the Louisiana Citizens Property Insurance Corporation by authorizing it to enter into cooperative endeavor agreements with the commissioner of insurance. This provision is intended to significantly benefit the policyholders of the corporation. The bill emphasizes collaboration between the governing board of the corporation and the insurance commissioner, requiring approval from the Senate and House Committees on Insurance before any agreement can be executed.
Sentiment
The sentiment surrounding SB6 appears generally supportive among legislators who view this legislation as a proactive step toward improving property insurance management in Louisiana. Proponents argue that the bill not only fortifies the corporation’s ability to aid policyholders better but also signifies governmental responsiveness to needs associated with property insurance. However, discussions may arise focusing on the implications of the changes for the governance and operational transparency of the insurance corporation.
Contention
While the bill is framed largely positively, notable points of contention could emerge regarding the controls and oversight associated with the cooperative agreements. Stakeholders might be concerned about diminishing oversight by legislative committees over these agreements. Additionally, the potential for increased inter-agency collaboration could create anxiety over accountability and the standards to be upheld when agreements are made between the corporation and the insurance commissioner.
Provides the Louisiana Insurance Guaranty Association and the Louisiana Citizens Property Insurance Cooperation exceptions from liability for certain property insurance claims.
Provides the Louisiana Insurance Guaranty Association and the Louisiana Citizens Property Corporation shall not be liable for certain property damage insurance claims. (8/1/23)
Suspends the premium surcharge of at least ten percent assessed by the Louisiana Citizens Property Insurance Corporation (RE -$25,880,388 SG RV See Note)
Clarifies with respect to the approval process for the conversion and reorganization of a mutual insurer into a insurance stock company and specifies the expression of the legislature that the intent of the legislature is that these clarifications are procedural and interpretive and apply to all contracts that have not yet been approved by both the insurance commissioner and the mutual members. (gov sig) (OR NO IMPACT See Note)
Authorizes the creation of cooperative economic development districts affiliated with Southern University and Louisiana State University in East Baton Rouge Parish. (gov sig) (EN SEE FISC NOTE GF RV See Note)
Provides the Louisiana Citizens Property Insurance Corporation shall not be liable for any special damages awarded for any property damage insurance claim. (8/1/23)
Suspends the premium surcharge of at least ten percent assessed by the Louisiana Citizens Property Insurance Corporation (OR -$25,041,734 SG RV See Note)