Louisiana House Bill HB447

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 4/28/10
• Engrossed: 5/10/10
• Refer: 5/11/10
• Report Pass: 5/19/10
• Enrolled: 6/21/10
• Chaptered: 7/8/10
• Passed: 7/8/10

Caption

Provides relative to certificates of insurance (EN INCREASE SG EX See Note)

Impact

The impact of HB 447 on state laws is significant as it clarifies the legal standing of certificates of insurance and establishes more stringent controls over their issuance. By requiring that all insurance certificate forms be filed with and approved by the commissioner of insurance, the bill aims to protect against misleading or deceptive practices in the insurance market. Such measures are intended to bolster consumer confidence and ensure that all parties involved understand the limitations and proper use of these certificates.

Summary

House Bill 447 amends existing laws related to certificates of insurance in Louisiana. The bill defines what constitutes a certificate of insurance and sets out the responsibilities of the commissioner of insurance concerning these certificates. It outlines the processes for the issuance, modification, and approval of insurance certificate forms, ensuring they comply with state regulations. One key aspect of the bill is that it prohibits the issuance of certificates that alter, amend, or extend the coverage provided by the underlying insurance policy.

Sentiment

The sentiment surrounding HB 447 appears largely supportive among legislators advocating for consumer protection and better regulation in the insurance industry. Proponents argue that the bill enhances transparency and accountability in the insurance market, benefiting both policyholders and third parties relying on these certificates. However, there may be some contention regarding the administrative burden this bill places on insurers and producers, as they must navigate the approval process for certificate forms.

Contention

Notable points of contention include concerns about the potential for increased regulatory oversight impacting the efficiency of insurance transactions. Some industry stakeholders may feel that the added requirements for certificate approvals could slow down the process of issuing necessary documentation for coverage proof, thereby affecting business operations. Additionally, the bill imposes penalties for willful violations, which raises questions about enforcement and compliance for insurers operating in the state.