Prohibits insurance companies from factoring institutional advertising expenses into the calculation of insurance rates.

Key Provisions:

- Redefines "expenses" to exclude institutional advertising.

- Defines "institutional advertising expenses" as marketing not aimed at acquiring specific business or informing consumers.

- Amends rating standards to explicitly prohibit using such expenses when determining insurance rates.

- Aims to prevent insurers from passing on broad marketing costs to policyholders.

- Could potentially lower or stabilize insurance rates by limiting allowable expense categories.

- Effective January 1, 2026.

Encourages rate-setting practices focused on operational and consumer-relevant costs rather than brand promotion.

HOUSE floor amendments technical

HOUSE committee amendments technical

Implications:

The bill makes changes to rules for surplus lines insurance, which is coverage provided by insurers not licensed in a state but allowed to sell insurance there for unique, high-risk, or hard-to-price cases that regular insurers won’t cover. Here’s what it does in simple terms:

• Surplus lines insurers can include arbitration agreements in their policies without following standard public contract rules.
• Policies must show a required notice in at least 14-point font (up from 10-point).
• Surplus lines insurers don’t need Department of Insurance approval for their rates or policy forms.
• They can add enforceable arbitration clauses to their policies.
• The new notice format applies to policies issued or renewed on or after January 1, 2026.
• Rules about arbitration start as soon as the governor signs the bill.

Updates Louisiana insurance law to improve how property and auto insurance claims are handled. It focuses on:

- Requiring proof that a deductible has been paid before certain claims are paid out.

- Setting stricter deadlines and increasing penalties for insurers that delay rental car coverage.

- Letting insured drivers challenge low vehicle value estimates using independent appraisals.

- Allowing insurers to require standardized proof of loss forms, with clear timelines and oversight from the insurance commissioner.

Creates the Fortify Coastal Homes Fund to help strengthen residential roofs in Louisiana’s coastal zone. Starting July 1, 2026, the fund will collect money from two sources: legislative appropriations and a portion of state sales and use taxes (up to 5% or $60 million, whichever is less) collected in the coastal zone during the two months following a declared natural disaster. The coastal zone includes parishes along and below the boundary line set by a 2012 law. The money will be used exclusively for grants to fortify homes in this area. The Department of Revenue must submit an annual report by February 1 to the legislature and the Department of Insurance, detailing collections and methods. The Department of Revenue and the Insurance Commissioner can make rules to implement the law.

HOUSE committee amendments technical

Seeks to criminalize activities related to specific hallucinogenic substances.

Provisions of the Bill:

1. Prohibited Activities:

• The bill makes it illegal to knowingly or intentionally produce, manufacture, distribute, or possess with intent to produce, manufacture, or distribute any material intended for human consumption that contains beta-phenyl-GABA, muscimol, ibotenic acid, or their analogs.
• Simple possession of such materials is also prohibited.

1. Penalties:

• For production, manufacturing, distribution, or possession with intent:
• Imprisonment ranging from 2 to 10 years, with or without hard labor.
• A fine up to $20,000.
• For simple possession:
• Imprisonment up to 5 years, with or without hard labor.
• A fine up to $5,000.

1. Definition of "Analog":

• The term refers to chemical compounds structurally similar to beta-phenyl-GABA, muscimol, or ibotenic acid that produce similar effects when consumed.

Substances Addressed:

• Beta-phenyl-GABA: Also known as phenibut, it's used in some countries for its anxiolytic effects but has potential for dependence and withdrawal issues.
• Muscimol and Ibotenic Acid: These compounds are found in certain mushrooms, such as Amanita muscaria, and are known for their psychoactive properties.

Implications:

If enacted, this legislation would classify the specified substances and their analogs as controlled, imposing strict penalties for their unauthorized handling. This move aligns with efforts to regulate substances that pose potential health risks due to their psychoactive effects.

Increases the maximum insurance premium tax credits for retaliatory taxes paid by certain Louisiana domestic insurers and extends the credit’s sunset date.

Key Provisions: 

- Raises the annual cap on tax credits from $9 million to $25 million. 

- Maintains pro rata refund distribution if total claims exceed the cap. 

- Extends the credit’s expiration from December 31, 2029 to December 31, 2034. 

- Applies to domestic insurers writing in Louisiana and at least one other state.

Effective Date: Upon governor's signature or lapse of time for gubernatorial action.

Purpose: Provides greater tax relief for Louisiana-based insurers paying retaliatory taxes in other states, aiming to support their competitiveness and stability.

Commends Casey Durand of Central Timber Services for being named the 2024 Outstanding Louisiana Logger.

Key Provisions:

• Recognizes Durand’s professionalism, safety practices, and adherence to forestry best management practices.
• Highlights his strong reputation among landowners and contributions to Louisiana's forestry and rural economy.
• Honors his selection by peers as a model representative of the logging industry.