The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Beth O'Quin.
DIGEST
SB 370 Original 2024 Regular Session Bass
Present law prohibits an insurer from cancelling or failing to renew a homeowners' policy or from
increasing the deductible for a homeowners' policy when the homeowners' policy has been in effect
and renewed for three years or more, unless the cancellation or nonrenewal for failure to pay
premiums, insurance fraud, a material change in risk, the insured filing two or more homeowners'
policy claims within a continuous three-year period within the five years preceding the current
renewal date, or the insurer is insolvent, or the continuation of the homeowner's policy endangers
the solvency of the insurer, or the insurer withdraws form the state. Present law provides an
insurance claim is deemed a claim only when there is a demand for payment by the insured or the
insured's representative under the terms of the policy. Present law provides an exception to present
law if the claim incurred or arose from an "Act of God".
Proposed law retains present law but authorizes an insurer to modify homeowners' policy deductible
for a policies that have been in effect or renewed for three years or more. Proposed law adds that a
modification of coverage at the time the policy is renewed is not deemed a cancellation or failure to
renew. Proposed law further provides technical changes.
Present law provides an insurer can increase a homeowners' policy deductible up to four percent for
named storms or hurricanes on policies that have been in effect or renewed for three years or more,
upon written notification to the commissioner of insurance. Present law provides the insurer is may
file a business plan, for the commissioner's approval that provides where the insurer proposes to
write new business in a particular region or area of the state where the new deductible applies.
Present law provides business plan filings are considered proprietary or trade secret.
Proposed law repeals present law.
Present law requires an insurer to reduce insurance premium rates paid by an individual homeowner
by an amount determined to be actuarially justified by the commissioner.
Proposed law repeals present law.
Proposed law provides that proposed law relative to modification of coverage, and annual review
of any insurer cancelling or failing to renew homeowners policies in effect or renewed for three years
or more does not apply to any property, casualty, or liability insurance issued after Aug. 1, 2024.
Proposed law provides an insurer on or after Aug. 1, 2024 may file with the commissioner of its
intention to nonrenew up to five percent of is homeowner's policies per calendar year for any reason.
Proposed law provides an insurer can request the commissioner to approve more than five percent
for homeowners' insurance in effect for at least three years on or before Aug. 1, 2024. Proposed law provides the filings to cancel or nonrenew certain homeowner's policies is considered proprietary
or trade secret. Proposed law requires the commissioner to promulgate rules and regulations in
regards to proposed law.
Present law prohibits an insurer from cancelling or failing to renew a homeowners' policy or from
increasing the deductible for a homeowners' policy when the policy has been in effect and renewed
for three years or more, unless the cancellation or nonrenewal is upon the request of the insured, for
failure to pay premiums, insurance fraud, a material change in risk, the insured filing two or more
homeowner's policy claims within a continuous three-year period within the five years preceding the
current renewal date, or the insurer is insolvent, or the continuation of the homeowners' policy
endangers the solvency of the insurer, or the insurer withdraws form the state. Present law provides
a claim is deemed a claim only when there is a demand for payment by the insured or the insured's
representative under the terms of the policy. Present law provides an exception to present law if the
claim incurred or arose from an "Act of God".
Proposed law repeals present law.
Present law provides an insurer can increase a homeowners' policy deductible of up to four percent
for named storms or hurricanes on a homeowners' policy that has been in effect or renewed for three
years or more upon written notification to the commissioner of insurance (commissioner). Present
law provides the insurer may file a business plan with the commissioner, for his approval, that
proposes the particular region or area in the state that the insurer plans to write new business in a
particular region or area of the state where the new deductible applies. Present law provides business
plan filings are considered proprietary or trade secret.
Proposed law repeals present law.
Proposed law prohibits a homeowners' policy from including a provision that applies more than one
deductible to a loss resulting from any single accident covered under the homeowner's policy.
Proposed law repeals present law.
Present law requires an insurer to reduce the rates paid by an individual homeowner by the amount
determined to be actuarially justified by the commissioner.
Proposed law repeals present law.
Present law prohibits an insurer and any unauthorized insurer withdrawing from the homeowners'
market in this state from issuing any new homeowners' coverage in this state for five years from the
discontinuation of the last homeowners' coverage that was not renewed. Present law authorizes the
commissioner to allow an insurer to reenter the homeowners' market for good cause.
Proposed law repeals present law.
Effective upon the signature of the governor or lapse of time for gubernatorial action. (Amends R.S. 22:1265(D) and (F)-(J); repeals R.S. 22:1333(C)-(H))