GET DAILY REPORT FREE
Two bills that are part of Insurance Commissioner Tim Temple’s industry-friendly insurance reform agenda passed through their respective committees this week, Louisiana Illuminator reports.
The proposals would repeal a consumer protection law in Louisiana that stops insurance companies from canceling homeowner policies without good reason.
Senate Bill 370, sponsored by Sen. Adam Bass, R-Bossier City, cleared the House Insurance Committee on Wednesday, while its lower chamber counterpart, House Bill 611, sponsored by Rep. Gabe Firment, R-Pollock, cleared the Senate Insurance Committee.
Both would repeal the state’s three-year rule, which prohibits insurance companies from raising deductibles, canceling or not renewing homeowner policies that have been in effect for more than three years.
If either measure is approved, insurers would be allowed to cancel up to 5% of their policies each year as long as the policies aren’t all in one parish, though the 5% mark is not a hard cap. The companies can cancel as many policies as they want with approval from the state insurance commissioner.
