Louisiana House Bill HB285

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/14/10
• Engrossed: 4/21/10
• Report Pass: 5/19/10
• Enrolled: 6/3/10
• Chaptered: 6/9/10
• Passed: 6/9/10

Caption

Exempts surplus lines insurance delivered by approved unauthorized insurers from laws regarding form and rate filing and approval

Impact

The bill's passage would mean that approved unauthorized insurers can offer surplus lines insurance without needing to seek approval for their forms and rates, effectively bypassing some state regulatory measures. This could potentially lead to an increase in the availability of diverse insurance products, particularly in niche markets where traditional insurers might not operate. However, this exemption raises concerns about consumer protections, as the absence of oversight could allow for the introduction of products that may not meet the same standards required of standard insurers.

Summary

House Bill 285 seeks to amend the insurance regulatory framework in Louisiana by exempting certain surplus lines insurance delivered by approved unauthorized insurers from the state laws regarding form and rate filing and approval. This legislative move is aimed at streamlining the process for unauthorized insurers, allowing them to operate without the bureaucratic oversight that standard licensed insurers must contend with. Proponents argue that this bill would encourage competition in the insurance market by allowing unauthorized insurers to swiftly provide coverage options without the delays created by mandatory filing procedures.

Sentiment

The sentiment surrounding HB285 appears to be mixed among stakeholders in the insurance industry. Supporters of the bill, which include certain insurance groups and industry advocates, believe that easing regulations can stimulate growth within the surplus lines insurance sector and provide consumers with more choices. Conversely, there are concerns from consumer advocacy groups regarding the potential risks associated with less regulatory oversight. Critics argue that the lack of required approvals could lead to inadequate protections for consumers who purchase such insurance products, casting doubt on the bill's overall benefits.

Contention

Notable points of contention during discussions of HB285 include the balance between fostering market competition and ensuring consumer protections. Advocates for the bill emphasize the need for a more agile regulatory framework that can adapt to the evolving insurance landscape, particularly in specialty lines. In contrast, detractors, including some lawmakers and consumer rights advocates, warn that such deregulation could compromise the integrity of the insurance market and harm consumers by allowing potentially substandard insurance products to proliferate without proper oversight.