SLS 25RS-164 ORIGINAL
2025 Regular Session
SENATE BILL NO. 62
BY SENATOR LUNEAU
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
INSURANCE COMMISSIONER. Requires the commissioner of insurance to determine if
premium rates are excessive. (8/1/25)
1 AN ACT
2 To amend and reenact R.S. 22:1452(C)(6), 1454(A), and 1465(A)(1) and (4), relative to
3 insurance rate regulation; to provide for definitions; to prohibit rates from being
4 excessive; to provide for disapproval of rates; to provide for refunding of excessive
5 rates; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 22:1452(C)(6), 1454(A), and 1465(A)(1) and (4) are hereby amended
8 and reenacted to read as follows:
9 §1452. Purpose of rate regulation; construction; definitions
10 * * *
11 C. As used in this Subpart, the following definitions shall be applicable:
12 * * *
13 (6) "Excessive" means a rate that is likely to produce a long-term profit that
14 is unreasonably high for the insurance provided. No rate in a competitive market
15 shall be considered excessive.
16 * * *
17 §1454. Rating standards and methods
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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. 62
SLS 25RS-164 ORIGINAL
1 A. Rates shall not be inadequate or unfairly discriminatory in a competitive
2 market. Rates shall not be excessive, inadequate, or unfairly discriminatory. in a
3 noncompetitive market. Risks may be classified using any criteria except that no risk
4 shall be classified on the basis of race, color, creed, or national origin.
5 * * *
6 §1465. Disapproval of filings; rates; procedures
7 A.(1) The commissioner shall disapprove a rate in a competitive market only
8 if he determines that the rate is inadequate or unfairly discriminatory. The
9 commissioner shall disapprove a rate for use in a noncompetitive market only if he
10 determines that the rate is excessive, inadequate, or unfairly discriminatory.
11 * * *
12 (4) If a rate filing is determined to be excessive, inadequate, or unfairly
13 discriminatory pursuant to the provisions of this Subpart, the commissioner may
14 direct the insurer to collect additional premiums to ensure that the rate is adequate
15 or to require a refund of any sums deemed to be excessive or discriminatory.
16 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Senate Legislative Services.
The keyword, summary, 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)]
DIGEST
SB 62 Original 2025 Regular Session Luneau
Present law provides for the regulation of insurance premium rates by the commissioner of
insurance.
Present law prohibits rates in a competitive market from being inadequate or unfairly
discriminatory. Further prohibits rates in a noncompetitive market from being excessive,
inadequate, or unfairly discriminatory.
Proposed law extends the prohibition against excessive rates to the competitive market and
provides that insurance premium rates are prohibited from being excessive, inadequate, or
unfairly discriminatory, regardless of whether the market for a particular line of insurance
is competitive or noncompetitive.
Present law defines a rate as "excessive" if it is likely to produce a long-term profit that is
unreasonably high for the insurance provided. Further provides that no rate in a competitive
market shall be considered excessive.
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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. 62
SLS 25RS-164 ORIGINAL
Proposed law repeals the prohibition against a rate in a competitive market being considered
excessive.
Present law authorizes the commissioner of insurance to disapprove a rate in a competitive
market only if he determines that the rate is inadequate or unfairly discriminatory. Further
authorizes the commissioner to disapprove a rate for use in a noncompetitive market only
if he determines that the rate is excessive, inadequate, or unfairly discriminatory.
Proposed law changes the authorizations to a requirement for the commissioner to
disapprove a rate if he determines that the rate is excessive, inadequate, or unfairly
discriminatory, regardless of whether the market for the particular line of insurance is
competitive or noncompetitive.
Present law allows the commissioner, if a rate filing is determined to be inadequate or
unfairly discriminatory, to direct the insurer to collect additional premiums to ensure that the
rate is adequate or to require a refund of any sums deemed to be discriminatory.
Proposed law retains present law and further authorizes the commissioner to require a refund
of any sums deemed to be excessive.
Effective August 1, 2025.
(Amends R.S. 22:1452(C)(6), 1454(A), and 1465(A)(1) and (4))
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.