SENATE floor amendments technical

SENATE committee amendments [LINK] prohibit insurers from changing an adjuster’s or appraiser’s original or supplemental repair estimate without notifying the person who wrote it. Any changes must include documented notification to the original or supplemental estimate's issuer.

Proposes an amendment to the state's insurance fraud statutes. Specifically, the bill seeks to classify the unauthorized alteration of a property and casualty insurance adjuster's report as a fraudulent insurance act. The proposed legislation would add a new provision, R.S. 22:1923(2)(q), to the existing law, defining fraudulent insurance acts to include:

"Amending or altering a property and casualty adjuster's report without the written permission of the adjuster that issued the report."

The bill is scheduled to take effect on August 1, 2025. By criminalizing unauthorized modifications to adjusters' reports, the legislation aims to uphold the integrity of insurance claims processes and deter fraudulent activities that could impact both insurers and policyholders.

The bill removes the specific condition that a vehicle must be traveling 10 miles per hour or less below the speed limit to incur penalties for driving in the left lane. Instead, it mandates that any vehicle moving slower than the posted speed limit must stay in the rightmost lane, except when passing or preparing for a left turn. Amends R.S. 32:71(B)(2) concerning motor vehicle operation on multilane highways.

The proposed penalties escalate with repeated offenses within a 12-month period:

• First offense: $150 fine.
• Second offense: $250 fine.
• Third offense: $350 fine, up to 30 days imprisonment, or both.

Previously, the law allowed a maximum fine of $100 or up to 30 days imprisonment, or both, without tiered penalties. The changes aim to enforce stricter compliance with right-lane driving and increase deterrence through graduated fines and potential jail time for repeat offenders. The law is set to take effect on August 1, 2025.

Would REMOVE the cap on debts that can be incurred WITHOUT THE APPROVAL OF THE BOND COMMISSION. Why is that?

Proposes amendments to R.S. 34:335.4(C) concerning the Central Louisiana Regional Port. Currently, the board of commissioners is authorized, with the approval of the State Bond Commission, to incur debts and issue negotiable bonds or notes up to a limit of $10 million, secured by revenues from port operations or other sources. The proposed legislation seeks to remove this $10 million cap, thereby allowing the board to issue bonds or notes without this limitation. If enacted, the bill would take effect on August 1, 2025.

HOUSE committee amendments [LINK] clarify the definition of "public power authority." The term now explicitly includes both a political subdivision created by a municipality for public power projects and the utility division of the city of Alexandria. Additionally, it specifies that the governing authority of Alexandria shall have access to commercially sensitive information held by the utility division.

Amends Louisiana's public records law concerning public power authorities. The bill proposes expanding the definition of "public power authority" to include not only political subdivisions created by municipal governing bodies but also utility divisions or departments organized as enterprise proprietary funds for the city of Alexandria. This change would allow such entities to withhold information from public disclosure such as:

• Portfolio and generation unit specific costs.
• Fuel and purchased power costs.
• Risk management strategies.
• Power pricing information, system load characteristics, marketing analyses and strategies, and customer billing, contract, and usage information.

If enacted, the bill would take effect on August 1, 2025.

SENATE committee amendments [LINK] require insurers to give consumers a copy of the credit information they use when processing an initial insurance application or a renewal. The requirement to provide this information "with quote" is removed.

Regarding the use of credit information in underwriting or rating personal insurance policies. The bill proposes amendments to Louisiana Revised Statutes §§1508, 1509, and 1510, focusing on several key areas:

Disclosure Requirements:

• Initial Disclosure: Insurers must inform applicants, either on the insurance application or at the time of application, that credit information may be obtained and used during underwriting or rating. This disclosure can be provided in writing or in the same medium as the application.
• Credit-Based Insurance Score Information: Before or at the time of providing a quote, insurers must deliver a written statement to the consumer containing:
• The consumer's credit-based insurance score used to determine the premium rate.
• A breakdown of the insurance score scale, including minimum and maximum possible scores within the model used, and an explanation of how different score ranges affect policy pricing, coverage options, and eligibility.
• A detailed explanation of the primary elements contributing to the insurance score.
• A general explanation of the influence each factor has on the final insurance score.
• A list of sources used to generate the insurance score.
• Specific recommendations on how the consumer can improve their insurance score over time.

This information must be presented clearly and understandably, either electronically or in writing, allowing the consumer to review and retain it.

Adverse Action Notifications:

If an insurer takes adverse action based on credit information, they must:

• Notify the consumer that an adverse action has been taken, consistent with the federal Fair Credit Reporting Act (15 U.S.C. 1681m(a)).
• Provide a clear and specific explanation for the adverse action, including up to four primary factors influencing the decision. Generalized terms like "poor credit history" are insufficient, although standardized credit explanations from consumer reporting agencies or third-party vendors are acceptable.

Filing and Review by Commissioner:

Insurers using insurance-related scoring systems must:

• File their scoring models or processes with the Department of Insurance.
• Ensure the commissioner reviews these models or processes to confirm compliance with the proposed law.

If enacted, these provisions will take effect on August 1, 2025.

If you want to run every insurance company out of the state of Louisiana, pass this bill. SB 62 does not explicitly require that excessive rates be determined based on actuarial analysis.

The bill defines an excessive rate as one likely to produce unreasonably high long-term profit but does not require actuarial standards or methods to make that determination. While rate filings typically include actuarial data, the bill mandates that the insurance commissioner decide if a rate is excessive and to order refunds, without specifying that the decision must be based on arbitrary not actuarial justification.

Regulation of insurance premium rates in Louisiana. The bill proposes several key amendments to existing laws:

• Uniform Standards for Rate Evaluation: Currently, in competitive markets, rates are prohibited from being inadequate or unfairly discriminatory, while in noncompetitive markets, rates must not be excessive, inadequate, or unfairly discriminatory.
• Redefinition of "Excessive" Rates: The existing definition states that no rate in a competitive market shall be considered excessive. The proposed legislation removes this provision, allowing for the possibility that rates in competitive markets can be deemed excessive if they are likely to produce unreasonably high long-term profits relative to the insurance provided.
• Mandatory Disapproval of Non-Compliant Rates: The bill changes the commissioner's authority from discretionary to mandatory in disapproving rates that are found to be excessive, inadequate, or unfairly discriminatory, irrespective of the market type.
• Authority to Require Refunds: If a rate is determined to be excessive, the commissioner is empowered to mandate refunds of any sums deemed excessive, extending the current authority which allows for refunds in cases of discriminatory rates.

The proposed changes are set to take effect on August 1, 2025.