Louisiana 2016 Regular Session

Louisiana House Bill HB184

Introduced
2/26/16  
Refer
2/26/16  
Refer
3/14/16  
Refer
3/14/16  
Report Pass
4/6/16  
Report Pass
4/6/16  
Engrossed
4/18/16  
Engrossed
4/18/16  
Refer
4/19/16  
Refer
4/19/16  
Report Pass
5/4/16  
Report Pass
5/4/16  
Enrolled
5/18/16  
Enrolled
5/18/16  
Chaptered
5/27/16  
Chaptered
5/27/16  
Passed
5/27/16  

Caption

Requires provision of certain claims information to insureds

Impact

The enactment of HB 184 would amend existing laws to require specific disclosures by homeowners' insurance providers in Louisiana. Insurers will have to include a notice prominently in the homeowners' policy documentation to clarify the implications of claims vis-a-vis the policy deductible. This could lead to more informed decision-making by insured parties when considering whether to file claims, potentially reducing the number of unnecessary claims filed for minor damages that do not meet the deductible amount. Furthermore, it could affect the overall premium landscape for insurance coverage among homeowners in the state.

Summary

House Bill 184 is a legislative measure aimed at providing greater transparency and accountability in homeowners' insurance policies. Specifically, it requires insurers to notify policyholders in writing that filing claims not exceeding the deductible may influence future premium increases or the potential cancellation of their policies. This new regulation is intended to ensure that homeowners are fully informed about how their insurance claims can impact their financial responsibilities in the long run, particularly in light of the often complex nature of insurance products.

Sentiment

The reception of HB 184 appears to be largely supportive among lawmakers, as reflected in the voting history, which shows unanimous support during the house vote. Supporters of the bill argue that increased transparency regarding the relationship between claims and premiums fosters a proactive approach to understanding insurance policies. However, some experts and consumer advocates express concerns that while the transparency is beneficial, it might discourage homeowners from filing legitimate claims for fear of repercussions on their premiums, ultimately leading to less financial protection.

Contention

While the bill has received wide support, one notable point of contention is the balance between ensuring policyholder awareness and the potential deterrent effect this requirement might have on filing claims. Critics argue that the fear of increased premiums or cancellation could lead homeowners to avoid making necessary claims for legitimate damages, thus undermining the purpose of having insurance in the first place. The discussion around this bill reflects a larger debate on consumer rights versus insurer protections in the homeowners' insurance market.

Companion Bills

No companion bills found.

Previously Filed As

LA HB1203

Provide that insurers may not use claims that did not exceed the insured's deductible to cancel coverage

LA HCR199

Requests the Louisiana Department of Insurance to study prohibiting insurers from using claims that did not exceed the insured's deductible to cancel coverage

LA HB611

Provides relative to homeowners' insurance and termination of certain policies

LA SB370

Provides for the termination of certain property, casualty, or liability policies. (See Act) (EG1 NO IMPACT See Note)

LA SB197

Provides for disclosures in homeowners' insurance policies. (See Act)

LA HCR208

Requests the commissioner of insurance to issue regulations requiring insurers to disclose to insureds that homeowner's claims not exceeding the policy deductible may be used by the insurer in determining rates or whether to renew a homeowner's policy

LA HB465

Provides for technical recodification of certain provisions of the La. Insurance Code relative to property insurance

LA HB463

Provides for technical recodification of certain provisions of the La. Insurance Code relative to general insurance policy requirements

LA SB212

Requires insurers to report certain commercial vehicle information. (See Act) (EN +$68,200 SG EX See Note)

LA HB05487

An Act Concerning The Recommendations Of The Small Business Healthcare Working Group And Claims Information Required To Be Provided By Insurers.

Similar Bills

No similar bills found.