Bill > HB356

This bill creates the Stated Value Homeowner's Policy Act, which requires insurance companies in Louisiana to offer homeowners a new type of insurance policy called a "stated value policy." Under this policy, homeowners can declare a specific insurance coverage amount for their property, independent of its current market value. Insurers must prominently disclose this option in all policy documents and are obligated to provide coverage at least equal to the property's assessed fair market value. Homeowners who choose this option must submit documentation about their mortgage, including a payoff statement and a mortgage certificate. The bill mandates that insurers cannot issue a policy for less than the outstanding mortgage balance and requires a prominent warning to consumers about potential financial risks if the stated value does not fully cover property replacement costs. The Louisiana insurance commissioner must create and distribute consumer information materials explaining the details, risks, and differences of stated value policies, including a dedicated website section for these resources. The bill also establishes enforcement mechanisms, allowing the department to impose penalties on insurers who fail to comply with the new regulations, and includes a severability clause to ensure that if any part of the law is found invalid, the rest remains in effect.

Business and Industry

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB356&sbi=y