Provides relative to hurricane, named storm, and wind and hail deductibles. (1/1/22) (RE NO IMPACT See Note)
Impact
SB 54 is poised to affect state laws governing insurance practices in Louisiana. By requiring insurers to clarify deductible amounts in a standardized form, the legislation enhances consumer awareness and understanding of their insurance agreements. This step aims to streamline the claims process during catastrophic events, further protecting homeowners from unexpected financial burdens. The bill's implementation establishes a clearer expectation for deductibles, which could influence future insurance market practices.
Summary
Senate Bill 54, introduced by Senator Luneau, seeks to amend regulations pertaining to homeowners' insurance policies in relation to deductibles for losses caused specifically by hurricanes, named storms, and wind and hail. Effective from January 1, 2022, the bill requires insurers to provide a separate form that explicitly lists the amounts for each type of deductible, which must be signed by the insured before the policy takes effect. This initiative aims to enhance transparency for policyholders regarding their financial obligations in the event of storm-related damages.
Sentiment
The sentiment surrounding SB 54 appears to be largely supportive, especially among homeowners and consumer advocacy groups who appreciate the push for greater clarity and accountability from insurance providers. However, there may be concerns among insurers regarding additional regulatory requirements and paperwork, which could complicate their operations. Overall, the general view of the bill reflects a positive response to improving consumer rights in a high-risk insurance landscape.
Contention
While SB 54 establishes beneficial provisions for homeowners, some points of contention may arise regarding the operational impacts on insurance companies. There are concerns that mandated changes in documentation requirements might lead to increased administrative burdens for insurers, potentially resulting in higher premium rates for consumers in the long term. Despite these concerns, the overall purpose of the bill is to protect homeowners' interests during natural disasters, a priority amidst increasing climate-related challenges.
Requires homeowners' insurance providers who use a named-storm or wind and hail deductible to offer the policyholder a discount on the annual premium. (8/1/13)
Grants a refundable individual income tax credit for up to $600 of deposits made in a tax year to Wind and Hail Deductible Savings Accounts which provide reimbursement to the account holder for damages or losses not covered because of a deductible. (gov sig) (OR DECREASE GF RV See Note)
Relating to insurance; to limit the number of times an insurer may apply a separate deductible to a homeowner's or a commercial property owner's named storm or hurricane insurance policy.
Requesting Each Branch Of The United States Military In The State To Provide Shelters That Can Withstand Hurricanes With Winds Of Over Two Hundred Miles-per-hour For All Of Their Active And Retired Personnel And Families Living In The State.
Requesting Each Branch Of The United States Military In The State To Provide Shelters That Can Withstand Hurricanes With Winds Of Over Two Hundred Miles-per-hour For All Of Their Active And Retired Personnel And Families Living In The State.