SLS 24RS-398 ORIGINAL
2024 Regular Session
SENATE BILL NO. 295
BY SENATOR CLOUD
INSURANCE RATES. Provides for certain processes relative to rate making. (8/1/24)
1 AN ACT
2 To 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 rate making; to provide for the process
4 whereby the commissioner reviews rate filings; to provide for the approval of rate
5 filings; to provide for certain rate filings to be deemed approved; to provide for
6 incomplete or disapproved rate filings; and to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 22:1451, 1464(A)(2) and (D), and 1465(A)(2) and (B)(1) are hereby
9 amended and reenacted and R.S. 22:1465(A)(4) and (D) are hereby enacted to read as
10 follows:
11 §1451. Systems for ratemaking
12 A. As used in this Subpart, the term "commissioner" shall mean the
13 commissioner of insurance.
14 B. The commissioner shall have the exclusive authority to accept, review, and
15 approve any application for insurance rates or rate changes for all lines of property
16 and casualty insurance. The commissioner shall exercise his authority in accordance
17 with the provisions of this Section.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 295
SLS 24RS-398 ORIGINAL
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 forty-
3 five days before it becomes effective. Upon written application by the insurer or
4 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 Except as provided for in Subsection B of this Section, every authorized insurer
18 shall file with the commissioner all rates, supplementary rate information, and
19 all supporting information for risks to be written by the insurer in this state.
20 The rates and information submitted pursuant to this Subpart shall be deemed
21 approved unless the insurer is notified otherwise by the commissioner within
22 thirty days of the rate filing.
23 D.B. Insurers negotiating with and insuring commercial entities, except with
24 regard to workers' compensation and medical malpractice insurance, with at least ten
25 thousand dollars in annual insurance premiums, shall be required to file insurance
26 rates or rate changes for such entities with the commissioner for informational
27 purposes only. The commissioner may by rule, regulation, or order reduce or
28 eliminate the annual premium threshold for those entities that enables rate filings to
29 be made under this Subsection.
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Coding: Words which are struck through are deletions from existing law;
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SLS 24RS-398 ORIGINAL
1 E.C. All provisions of this This Section shall be applicable when a
2 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 public
6 hearing, the commissioner determines the market to be noncompetitive, all rate
7 filings shall follow the provisions of Subsection C of this Section without regard to
8 the exception specified in Subsection D of this Section. An aggrieved party affected
9 by the commissioner's decision, act, or order may demand a hearing in accordance
10 with Chapter 12 of this Title, R.S. 22:2191 et seq. be deemed approved unless the
11 insurer is notified otherwise by the commissioner within sixty days of the rate
12 filing.
13 D. Nothing in this Section shall be construed to prohibit the
14 commissioner from approving a rate filing prior to the expiration of the
15 notification periods provided 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 rate filing that is in
20 compliance with Subsection C the provisions of this Section Subpart on the basis
21 of time that has elapsed since the most recent rate approval by the commissioner rate
22 filing by the insurer.
23 §1464. Rate filing
24 A.(1) * * *
25 (2) When If a filing made pursuant to this Subsection is not accompanied by
26 the information upon which the insurer or rating organization supports the rate filing,
27 and the commissioner does not have sufficient information to determine whether the
28 rate filing meets the requirements of this Subpart, it shall require such insurer or
29 rating organization to furnish the information upon which it supports its filing, and
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SLS 24RS-398 ORIGINAL
1 the waiting periods provided in R.S. 22:1451(C)(1) shall commence as of the date
2 the information is furnished to complete the filing.
3 * * *
4 D. All rates, supplementary rate information, and any supporting information
5 filed under this Subpart shall be open to public inspection upon expiration of the
6 forty-five-day notification period as set forth in applicable pursuant to R.S.
7 22:1451(C)(1), or upon disapproval, except for information which is deemed
8 confidential, trade secret, or proprietary by the insurer or filer.
9 * * *
10 §1465. Disapproval of filings; rates; procedures
11 A.(1) * * *
12 (2) If within the forty-five-day waiting period or any extension of this
13 notification period as provided in R.S. 22:1451, the commissioner finds that a rate
14 filing does not meet the requirements of this Subpart, he shall send to the insurer or
15 rating organization which made such filings written notice of disapproval of such the
16 rate filing specifying wherein he finds such the rate filing fails to meet is not in
17 compliance with the requirements of this Subpart, and the commissioner stating
18 states that such the rate filing shall not become effective.
19 * * *
20 (4) If a rate filing is determined to be inadequate or unfairly
21 discriminatory pursuant to the provisions of this Subpart, the commissioner
22 may direct the insurer to collect additional premium to ensure that the rate is
23 adequate or to require a refund of any sums deemed to be discriminatory.
24 B.(1) Any insurer whose rate filing is returned as incomplete more than once
25 or disapproved or not acted upon within forty-five days from the date of receipt by
26 the commissioner under this Subsection shall be given provided a public hearing
27 upon written request made within thirty days of the return of the rate filing,
28 disapproval of the rate filing, or inaction of the commissioner.
29 * * *
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 295
SLS 24RS-398 ORIGINAL
1 D. Nothing in this Section shall be interpreted to create a private cause
2 of action.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Beth O'Quin.
DIGEST
SB 295 Original 2024 Regular Session Cloud
Present law provides rate filing requirements for certain property, casualty, and liability
policies.
Proposed law changes the rate filing requirement for certain property, casualty, and liability
policies by requiring every insurer writing certain property, casualty, and liability policies
to file with the commissioner of insurance all rates, supplementary rate information, and all
supporting information for risks to be written by the insurer in this state. The rates and
information submitted is deemed approved unless the commissioner notifies the insurer
within 30 days from the Dept. of Insurance receiving the rate filing.
Present law provides the Dept. of Insurance may determine whether the information
provided in the rate filing is insufficient to determine if the rate filing meets the requirements
provided by present law. Present law provides that waiting periods commence from the date
the insurer or rating organization provides the department sufficient information for
determining whether the rate filing is compliant with present law.
Proposed law retains present law but removes the term "waiting" from present law. Proposed
law makes technical changes.
Proposed law provides if a rate filing is determined to be inadequate or unfairly
discriminatory, the commissioner may direct the insurer to collect additional premium to
ensure that the rate is adequate or require the insurer to provide the insured a refund of any
sums deemed to be discriminatory.
Proposed law provides proposed law is not to be interpreted as to create a private cause of
action.
Effective on August 1, 2024.
(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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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.