Louisiana House Bill HCR47

Louisiana 2018 Regular Session

• Introduced: 4/16/18
• Refer: 4/17/18
• Report Pass: 4/25/18
• Engrossed: 5/7/18
• Passed: 5/9/18

Caption

Requests the Department of Insurance to assemble a task force to address the high automobile insurance rates in the state

Impact

The resolution recognizes the alarming fact that a substantial number of drivers in Louisiana—14%—do not have any insurance, while a significant 40% possess only the minimum coverage required. This situation is exacerbated by the departure of five insurance companies from the state in the past two years, citing unprofitability within the automotive insurance sector. By urging the assembly of a task force, HCR47 seeks to initiate a thorough investigation of the insurance market dynamics in Louisiana and propose actionable recommendations aimed at reducing insurance costs for consumers.

Summary

HCR47 is a concurrent resolution that urges and requests the Department of Insurance in Louisiana to assemble a task force aimed at tackling the high automobile insurance rates prevalent in the state. This resolution was introduced in response to concerns that Louisiana ranks as the second most expensive state for automobile insurance in the United States. The bill highlights the significant impact of high insurance rates on drivers, particularly in major metropolitan areas where costs are disproportionately high compared to less populated regions.

Sentiment

The sentiment surrounding HCR47 appears to be largely supportive among the legislators who recognize the financial burden high insurance rates impose on Louisiana drivers. The need for a task force indicates a desire for targeted solutions rather than a mere acknowledgment of the problem. The resolution’s passage in the Senate with a unanimous vote of 33 to 0 reflects a collective agreement on the urgency and importance of the issue. Stakeholders are optimistic that this concerted effort may lead to reforms that provide relief to consumers facing exorbitant rates.

Contention

Though HCR47 does not indicate major points of contention within its text, some concerns may arise around implementation and the perceived effectiveness of a task force in resolving systemic issues in the insurance market. There may also be discussions on potential regulatory changes or reforms that could stem from the findings of the task force, which could affect how insurance companies operate in Louisiana. As the task force prepares to deliver its report with recommendations, stakeholders will likely scrutinize the outcomes closely.