The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Beth O'Quin.
DIGEST
SB 370 Engrossed 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 is 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, the insurer is insolvent, the continuation of the homeowner's policy endangers the
solvency of the insurer, or the insurer withdraws from 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 deductibles
for 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 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 before Aug. 1, 2024, may file with the commissioner notice
of its intention to nonrenew up to five percent of its 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.
Proposed law repeals duplicative provisions of 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 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.
Proposed law relative to nonrenewal of policies in place for at least three years on or before August
1, 2024, is effective upon the signature of the governor or lapse of time for gubernatorial action. All
other provisions of proposed law are effective January 1, 2025.
(Amends R.S. 22:1265(D); adds R.S. 22:1265(K) and (L); repeals R.S. 22:1265(F) and (H) and
1333(C)-(H))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Insurance to the original bill
1. Makes technical changes.
2. Relocates and reorganizes provisions of proposed law.
3. Provides for legislative intent.
4. Provides for an effective date.