Bill > HB576

This bill modifies Louisiana insurance rate regulation by eliminating distinctions between competitive and noncompetitive insurance markets and establishing more uniform standards for rate approval. Specifically, the bill changes how "excessive" rates are defined, removing the previous language that excluded competitive markets from excessive rate considerations and instead establishing a broader standard that a rate is excessive if it would produce an unreasonably high profit or includes expense provisions that are disproportionate to services rendered. The bill empowers the insurance commissioner to disapprove rates that are excessive, inadequate, or unfairly discriminatory, regardless of market type. Additionally, the bill introduces a new provision requiring the commissioner to specify interim rates and potentially use an escrow account if rates are disapproved, with a mechanism for distributing escrowed funds or correcting overcharges when new rates become effective. The bill also repeals several existing statutes related to market classification, effectively streamlining the regulatory approach to insurance rate setting. These changes aim to provide more consistent oversight and consumer protection in insurance rate regulation.

Business and Industry

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB576&sbi=y