Requests the commissioner of insurance to investigate the potential for creating a Coastal Reinsurance Assistance Program
Impact
If established, the Coastal Reinsurance Assistance Program would allow participating states to collaboratively fund a reinsurance product, which can help stabilize the property insurance market. This program could particularly benefit coastal states like Louisiana, where homeowners have seen their options diminish as many insurers exit the market. By potentially pooling resources and negotiating better rates, the program aims to create a more competitive landscape that directly impacts how insurance premiums are set for consumers.
Summary
House Concurrent Resolution 53 (HCR53) urges the commissioner of insurance to investigate the establishment of a Coastal Reinsurance Assistance Program aimed at reducing the cost of property insurance for homeowners. This initiative is inspired by a similar program implemented in Florida, which offers insurers the option to purchase reinsurance at reduced rates. The goal is to lower premiums for property owners, many of whom have faced drastic increases in insurance costs, potentially leading to financial hardship and lack of coverage.
Sentiment
The sentiment surrounding HCR53 appears to be cautiously optimistic. Proponents emphasize the urgency of addressing the increasing insurance costs that could jeopardize home ownership for many residents, especially in vulnerable coastal areas. However, there may also be concerns regarding the feasibility of implementing such a program and whether it will effectively achieve its intended outcomes without unintended consequences.
Contention
While there seems to be broad support for investigating the program, some stakeholders may question the mechanisms of implementation and the logistics of interstate cooperation. The resolution calls for a detailed study by the commissioner of insurance, with a report due by February 1, 2025. This will require thorough discussions and negotiations among multiple states to ensure a viable cooperative approach is developed.
Urges the commissioner of insurance to create the Hurricane Mitigation Commission to study and report findings and recommendations relative to the handling of property insurance claims in the wake of hurricanes and the necessity of a catastrophe savings account.
Urges and requests the Louisiana attorney general to seek legal relief against the Federal Emergency Management Agency's new pricing for the National Flood Insurance Program
Provides the Louisiana Insurance Guaranty Association and the Louisiana Citizens Property Insurance Cooperation exceptions from liability for certain property insurance claims.
Requests Senate Committee on Judiciary A and House Committee on Civil Law and Procedure to meet and function as a joint committee to study heirship property and rights of a spouse to receive title to certain immovable property upon death of the other spouse.