Commissioner Donelon Sums Up the Success of the 2023 Legislative Session for the Louisiana Insurance Market
Posted 10:46 a.m. Saturday, July 15, 2023
BATON ROUGE — Insurance Commissioner Jim Donelon worked with Senate Insurance Committee Chairman Kirk Talbot and House Insurance Committee Chairman Mike Huval during the 2023 legislative session to pass several measures aimed at stabilizing the insurance market. government property insurance. The package includes bills related to the Louisiana Fortify Homes program, the Insure Louisiana Incentive program and more.
“Louisiana has made significant progress in addressing one of the primary issues facing our state, the crisis in the availability and affordability of property insurance,” Commissioner Donelon said. “We have worked closely with state leaders to pass legislation that will help Louisianans through this insurance crisis while making our market more attractive to insurance companies.”
The Louisiana Department of Insurance (LDI) worked closely with state leaders, including Governor Edwards, Senate Speaker Page Cortez, House Speaker Clay Schexnayder and others, to fund the Insure Louisiana incentive program with $45 million at a special session earlier this year. The program, which offers matching grants to insurance companies that agree to write at least half of their new business in South Louisiana, has eight participants who have been collectively approved for $42 million in funding. . House Appropriations Chairman Zee Zeringue drafted a bill this session that allocates an additional $10 million to the program. The remaining $13 million in grants will be made available to insurers in a second upcoming application period.
The Legislature also appropriated $30 million for the Louisiana Fortify Homes program this session after it was established in 2022. The program allows residents to apply for grants to repair or replace their roofs using sturdier construction methods that meet or exceed the insurance fortified roof standard. Institute for Business and Home Security (IBHS). Although homeowners will need to meet certain eligibility requirements and pay permits, inspections and similar fees, the grants will provide them with up to $10,000 towards the total cost of replacing their roof to the FORTIFIED standard. LDI staff are currently working on registering contractors in the system, and owners can expect to start applying for grants in October.
These measures are not the only insurance-related legislation passed this session. Other significant pieces of legislation passed with LDI support include Senate Bill 96, which immunizes Louisiana citizens from class action lawsuits for wrongful payment of claims and from bad faith penalties; House Bill 183, which prohibits the assignment of benefits between policyholders and repair service providers such as roofers and contractors; Senate Bill 156, which prevents insurers from prohibiting an insured from hiring a public adjuster; and Senate Bill 143, which prohibits former officers and directors of recently defaulted insurers from serving as an officer or director of an insurer doing business in Louisiana.
The Louisiana Department of Insurance works to improve competition in the state’s insurance marketplace while helping individuals and businesses with the information and resources they need to be consumers of insurance. informed insurance. As a regulator, LDI enforces laws that provide a fair and stable marketplace and ensures that insurers follow the laws in place to protect policyholders. You can contact LDI by calling 1-800-259-5300 or by visiting www.ldi.la.gov.