Louisiana Senate Bill SR99

Louisiana 2022 Regular Session

• Introduced: 5/2/22
• Refer: 5/3/22
• Report Pass: 5/11/22
• Passed: 5/12/22

Caption

Urges the Commissioner of Insurance to study the issue of notice of cancellation or nonrenewal of a property insurance policy that provides coverage for property damaged by a named storm or windstorm.

Impact

SR99 seeks to address the problems surrounding the cancellation or nonrenewal of insurance policies for homeowners who may struggle to complete repairs within the mandated period. By requesting a study, the resolution aims to provide insights that could lead to changes in insurance practices or policies, potentially offering more leniency to homeowners who are genuinely attempting to complete their necessary repairs. This could help mitigate the risk of losing coverage, especially during recovery periods following a disaster.

Summary

Senate Resolution 99 is a legislative measure that urges the Louisiana Commissioner of Insurance to conduct a study on the notice of cancellation or nonrenewal of property insurance policies for homeowners affected by named storms or windstorms. The resolution brings attention to the challenges homeowners face in fulfilling repair obligations within the required timeframe after catastrophic events. Specifically, it highlights the plight of policyholders who have experienced extensive property damage due to hurricanes and the complications that come with repair timelines amid shortages of labor and materials.

Sentiment

The sentiment surrounding SR99 appears to be one of concern and empathy towards policyholders, reflecting a recognition of the difficulties they face in complying with strict insurance regulations post-disaster. The resolution indicates a legislative intent to support these individuals and to ensure that their insurance needs are met without undue penalties. Supporters likely view the resolution as a necessary step to protect homeowners during times of distress.

Contention

As a resolution, SR99 does not present direct legal changes but calls for a study to assess the adequacy and effectiveness of current insurance cancellation policies. Some potential points of contention may arise regarding how insurance companies might respond to such a study and whether their practices will need to evolve based on its findings. Additionally, discussions may emerge around the appropriate balance between regulation and the insurers' need for sustainability, particularly in how they manage risk after natural disasters.