HLS 24RS-633 ORIGINAL
2024 Regular Session
HOUSE BILL NO. 613
BY REPRESENTATIVE FIRMENT
INSURANCE/RATES: Provides relative to the ratemaking system utilized by insurers and
rating organizations relative to rate filings
1 AN ACT
2To amend and reenact R.S. 22:1451, 1464(A)(2) and (D), and 1465(A)(2) and (B)(1) and to
3 enact R.S. 22:1465(A)(4) and (D), relative to ratemaking systems; to provide relative
4 to insurers and rate service organizations; to provide for rate filing approval and
5 disapproval; to provide for notification periods; to provide for incomplete or
6 disapproved rate filings; to provide for inadequate or discriminatory rate filings; to
7 prohibit causes of action; to provide for an effective date; and to provide for related
8 matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 22:1451, 1464(A)(2) and (D), and 1465(A)(2) and (B)(1) are hereby
11amended and reenacted and R.S. 22:1465(A)(4) and (D) are hereby enacted to read as
12follows:
13 §1451. Systems for ratemaking
14 A. As used in this Subpart, the term "commissioner" shall mean the
15 commissioner of insurance.
16 B. The commissioner shall have the exclusive authority to accept, review,
17 and approve any application for insurance rates or rate changes for all lines of
18 property and casualty insurance. The commissioner shall exercise his authority in
19 accordance with the provisions of this Section.
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HB NO. 613
1 C.(1) Subject to the exception specified in Subsection D of this Section, each
2 filing submitted to the commissioner shall be on file for a waiting period of
3 forty-five days before it becomes effective. Upon written application by the insurer
4 or rating organization, the commissioner may authorize a filing which the
5 commissioner has reviewed to become effective before the expiration of the waiting
6 period. At the expiration of the forty-five day waiting period, the filing shall be
7 deemed approved unless prior to day forty-five the filing has been affirmatively
8 approved or disapproved by order of the commissioner. Approval of any such filing
9 by the commissioner shall constitute a waiver of any unexpired portion of this
10 waiting period. The commissioner may by rule, regulation, or order reduce or
11 eliminate the waiting period specified in this Subsection. For any filing that is
12 disapproved, the insurer may appeal the disapproval to the Nineteenth Judicial
13 District Court within fifteen days from the receipt of written notice of disapproval.
14 (2) Unless notified by the commissioner that a filing is disapproved pursuant
15 to this Subpart, the insurer or rating organization may commence use of the filed
16 rates upon expiration of forty-five days from the date of receipt by the commissioner.
17 Every authorized insurer shall file with the commissioner all rates,
18 supplementary rate information, and all supporting information for risks to be written
19 by the insurer in this state. The rates and information submitted pursuant to this
20 Subpart are deemed approved unless the insurer is notified otherwise by the
21 commissioner in writing within thirty days of the filing.
22 D. B. Insurers negotiating with and insuring commercial entities, except with
23 regard to workers' compensation and medical malpractice insurance, with at least ten
24 thousand dollars in annual insurance premiums, shall be are required to file insurance
25 rates or rate changes for such entities with the commissioner for informational
26 purposes only. The commissioner may by rule, regulation, or order reduce or
27 eliminate the annual premium threshold for those entities that enables rate filings to
28 be made under this Subsection.
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HB NO. 613
1 E. C. All provisions of this Section shall be This Section is applicable when
2 a competitive market in property and casualty lines insurance exists. The
3 commissioner may determine if there exists a competitive or noncompetitive market
4 pursuant to the provisions of R.S. 22:1453, including requiring reasonable notice and
5 a public hearing prior to determining a market to be noncompetitive. If, after a
6 public hearing, the commissioner determines the market to be noncompetitive, all
7 rate filings shall follow the provisions of Subsection C of this Section without regard
8 to the exception specified in Subsection D of this Section. An aggrieved party
9 affected by the commissioner's decision, act, or order may demand a hearing in
10 accordance with Chapter 12 of this Title, R.S. 22:2191 et seq are deemed approved
11 unless the insurer is notified otherwise by the commissioner in writing within sixty
12 days of the filing.
13 D. Nothing in this Section shall be construed to prohibit the commissioner
14 from approving a filing prior to the expiration of the notification periods provided
15 for in this Section.
16 F. E. No provision of Nothing in this Section shall be construed to prohibit
17 the commissioner from conducting market conduct exams to ensure the rates being
18 charged by insurers are not inadequate, excessive, or unfairly discriminatory.
19 G. F. The commissioner shall not disapprove a filing that is in compliance
20 with Subsection C of this Section the provisions of this Subpart on the basis of time
21 that has elapsed since the most recent rate approval by the commissioner filing by
22 the insurer.
23 * * *
24 §1464. Rate filing
25 A.
26 * * *
27 (2) When If a filing made pursuant to this Subsection is not accompanied by
28 the information upon which the insurer or rating organization supports the rate filing,
29 and the commissioner does not have sufficient information to determine whether the
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HB NO. 613
1 rate filing meets the requirements of this Subpart, it he shall require such insurer or
2 rating organization to furnish the information upon which it supports its filing, and
3 the waiting notification periods provided in R.S. 22:1451(C)(1) R.S. 22:1451 shall
4 commence as of the date the information is furnished to complete the filing.
5 * * *
6 D. All rates, supplementary rate information, and any supporting information
7 filed under pursuant to this Subpart shall be are open to public inspection upon
8 expiration of the forty-five-day period as set forth in R.S. 22:1451(C)(1) notification
9 period applicable pursuant to R.S. 22:1451, or upon disapproval, except for
10 information which is deemed confidential, trade secret, or proprietary by the insurer
11 or filer.
12 * * *
13 §1465. Disapproval of filings; rates; procedures
14 A.
15 * * *
16 (2) If within the forty-five-day waiting period or any extension of this
17 notification period as provided in R.S. 22:1451, the commissioner finds that a filing
18 does not meet the requirements of this Subpart, he shall send to the insurer or rating
19 organization which made such filings written notice of disapproval of such filing,
20 specifying wherein he finds specify the reasons why such filing fails to meet the
21 requirements of this Subpart, and stating state that such filing shall not become
22 effective become ineffective as of the date the written notice is sent, at which time
23 the insurer's or rating organization's most recently approved filing shall resume
24 effectiveness.
25 * * *
26 (4) If the commissioner determines that a rate filing is inadequate or unfairly
27 discriminatory pursuant to the provisions of this Subpart, he may direct the insurer
28 to collect additional premium to ensure that the rate is adequate or require a refund
29 of any sums deemed discriminatory.
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1 B.(1) Any insurer whose rate filing is returned as incomplete more than once
2 or disapproved or not acted upon within forty-five days from the date of receipt by
3 the commissioner under this Subsection shall be given a public hearing upon written
4 request made within thirty days of the return of the rate filing, disapproval of the rate
5 filing, or inaction of the commissioner.
6 * * *
7 D. Nothing in this Section shall be interpreted to create a private cause of
8 action.
9 Section 2. This Act shall become effective upon signature by the governor or, if not
10signed by the governor, upon expiration of the time for bills to become law without signature
11by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
12vetoed by the governor and subsequently approved by the legislature, this Act shall become
13effective on the day following such approval.
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 613 Original 2024 Regular Session Firment
Abstract: Provides relative to the ratemaking system utilized by insurers and rating
organizations submitting rate filings to the commissioner of insurance.
Present law authorizes the commissioner of insurance (commissioner) to accept, review, and
approve any application for insurance rates or changes for all lines of property and casualty
insurance. Requires the commissioner to exercise his authority according to present law.
Proposed law deletes present law.
Present law generally authorizes the commissioner to approve an insurer's rate filing, upon
written application by an insurer or rating organization, within the 45-day waiting period
prescribed in present law. Further provides that a rate filing is deemed approved by the
commissioner unless the commissioner affirmatively approves or disapproves the filing
within the 45-day waiting period.
Proposed law deletes present law.
Proposed law requires every authorized insurer to file with the commissioner all rates,
supplementary rate information, and all supporting information for risks to be written by the
insurer. Further provides that rates and submitted information are deemed approved unless
the insurer is notified otherwise in writing by the commissioner within 30 days of the filing.
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HB NO. 613
Present law provides that if, after a public hearing, the commissioner determines the market
to be noncompetitive, insurers are required to make all rate filings in accordance with the
45-day waiting period prescribed present law.
Proposed law deletes present law to provide that rate filing information is deemed approved
unless the commissioner notifies the insurer in writing within 60 days of the filing. Further
authorizes the commissioner to approve a filing prior to expiration of notification periods.
Present law requires the commissioner to specify his reasons for disapproving the filing of
an insurer or rating organization and prohibits effectiveness of a disapproved filing.
Proposed law modifies present law to provide that a disapproved filing is ineffective as of
the date the commissioner sends written notice of disapproval. Further provides that the
insurer's or rating organization's most recently approved filing will resume effectiveness.
Proposed law authorizes the commissioner to direct an insurer to collect additional premium
or refund of any sums if he deems the insurer's rate filing as inadequate or unfairly
discriminatory.
Proposed law does not create a private cause of action.
Proposed law makes technical changes to citations and references.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 22:1451, 1464(A)(2) and (D), and 1465(A)(2) and (B)(1); Adds R.S.
22:1465(A)(4) and (D))
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