HLS 25RS-1016 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 576
BY REPRESENTATIVE ROBBY CARTER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
INSURANCE/RATES: Provides relative to rates in competitive and noncompetitive
markets
1 AN ACT
2To amend and reenact R.S. 22:1452(C)(introductory paragraph) and (6), 1454(A), and
3 1465(A)(1) and to repeal R.S. 22:1451(D), 1452(C)(4) and (15), 1453, and 1455,
4 relative to the powers and duties of the commissioner of insurance; to provide for
5 rating standards and methods; to modify relative to excessive rates; to provide with
6 respect to disapproval of rates by the commissioner of insurance; to repeal relative
7 to competitive and noncompetitive markets; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 22:1452(C)(introductory paragraph) and (6), 1454(A), and
101465(A)(1) are hereby amended and reenacted to read as follows:
11 §1452. Purpose of rate regulation; construction; definitions
12 * * *
13 C. As used in this Subpart, the following definitions shall be applicable
14 apply:
15 * * *
16 (6) "Excessive" means a rate that is likely to produce a long-term profit that
17 is unreasonably high for the insurance provided. No rate in a competitive market
18 shall be considered excessive.
19 * * *
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 25RS-1016 ORIGINAL
HB NO. 576
1 §1454. Rating standards and methods
2 A. Rates shall not be inadequate or unfairly discriminatory in a competitive
3 market. Rates shall not be excessive, inadequate, or unfairly discriminatory. in a
4 noncompetitive market. Risks may be classified using any criteria except that no
5 risk shall be classified on the basis of race, color, creed, or national origin.
6 * * *
7 §1465. Disapproval of filings; rates; procedures
8 A.(1) The commissioner shall disapprove a rate in a competitive market only
9 if he determines that the rate is inadequate or unfairly discriminatory. The
10 commissioner shall disapprove a rate for use in a noncompetitive market only if he
11 determines that the rate is excessive, inadequate, or unfairly discriminatory, except
12 the commissioner shall not make such a determination if the rate is actuarially
13 justified.
14 * * *
15 Section 2. R.S. 22:1451(D), 1452(C)(4) and (15), 1453, and 1455 are hereby
16repealed in their entirety.
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 576 Original 2025 Regular Session Robby Carter
Abstract: Repeals relative to competitive and noncompetitive markets to generally prohibit
excessive, inadequate, or unfairly discriminatory insurance rates as determined by
the commissioner of insurance.
Present law provides regulations for rating standards and methods. Provides that
"excessive," as the term relates to rates, means a rate that is likely to produce a long-term
profit that is unreasonably high for the insurance provided. Prohibits rates in competitive
markets from being considered excessive.
Proposed law modifies the definition of "excessive" to remove the portion that prohibits
rates in competitive markets from being considered excessive. Otherwise retains present
law.
Present law authorizes risk classification based on any criteria except race, color, creed, or
national origin. Proposed law retains present law.
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HB NO. 576
Present law prohibits rates that are inadequate or unfairly discriminatory in a competitive
market. Prohibits rates that are excessive, inadequate, or unfairly discriminatory in a
noncompetitive market.
Proposed law deletes present law to generally prohibit excessive, inadequate, or unfairly
discriminatory rates, regardless of the market.
Present law requires the commissioner of insurance (commissioner) to disapprove a rate in
a competitive market only if he determines the rate is inadequate or unfairly discriminatory.
Proposed law deletes present law.
Present law requires the commissioner to disapprove a rate for use in a noncompetitive
market only if he determines the rate is excessive, inadequate, or unfairly discriminatory.
Proposed law deletes present law relative to the noncompetitive market to require the
commissioner's disapproval of a rate only if he determines the rate is excessive, inadequate,
or unfairly discriminatory. Prohibits the commissioner's disapproval of an actuarially
justified rate.
Present law (R.S. 22:1451(D), 1452(C)(4) and (15), 1453, and 1455) provides definitions
and regulations for rates in competitive and noncompetitive markets.
Proposed law repeals present law.
(Amends R.S. 22:1452(C)(intro. para.) and (6), 1454(A), and 1465(A)(1); Repeals
R.S.22:1451(D), 1452(C)(4) and (15), 1453, and 1455)
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.