07SessionSummaryPropCasIns

2007 Regular Session of the Louisiana Legislature
LAJ summary of selected bills and effective dates

Property and casualty insurance
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An insurance policy may not limit the insured’s right of action against the insurer on a first-party property claim to a period of less than two years. (Amends R.S. 22:629(B) and 691(F))
HB 381 Bowler; Act 43; Effective 8/15/07

Insurers must provide a discount, credit, rate differential, adjustment in deductible, or other adjustment to reduce the insurance premium to insureds who comply with building codes or provide for damage mitigation. Commissioner of insurance, in consultation with the State Uniform Construction Code Council, must promulgate rules and regulations to implement provisions by Jan. 1, 2008. (Adds R.S. 22:1426)
HB 558 Salter; Act 323; Effective 7/9/07

Protects the interest of an innocent coinsured in the event of a loss by fire caused by the named insured. Also, a court may void a fire policy due to misrepresentation by an insured to an insurer, but such judicial determination may not be applied retroactively to a prior claim. (Amends R.S. 22:615 and 692.1)
HB 596 Toomy; Act 156; Effective 6/25/07

Residential property insurers in Hurricane Katrina or Rita disaster areas must offer policyholders the option to select a policy that provides dwelling coverage without contents coverage or the exclusion of contents coverage at a reduced cost. Applies to structures rendered uninhabitable. A substitute policy or an exclusion of contents coverage does not constitute a new policy. (Adds R.S. 22:667.1)
HB 717 Baylor; Act 449; Effective (see bill)

Abolishes the Louisiana Insurance Rating Commission and transfers its powers, duties, and functions and those of the Office of Property and Casualty to the commissioner of insurance. (Amends R.S. 22:1382(A)(3)(a)(iv), 1401, 1402, 1404, 1404.1, 1404.2, 1405(B)(2)(b), 1407, 1408, 1411, 1416, 1417(B) and (2), 1422, 1422.1, 1430.5(A), 1430.11(D), 1430.14, 1441.7(C), 1441.10, 1441.21(D), and 2092.5.1(B), and R.S. 44:4(5)(a); adds R.S. 22:15(C)(22), 1402.1, 1402.2, and 1402.3; repeals R.S. 22:15(C)(8), (E)(16), (F)(7), and (G)(7), 1401.1, 1405(B)(2)(c), 1406, 1410(B), 1418, and 1450.3 and R.S. 36:686(C)(1))
HB 960 Carter, K.; Act 459; Effective 1/1/08

Insurers under present law may not cancel or fail to renew or increase deductibles on a homeowner policy that has been in effect for more than three years with certain exceptions, including having “two or more claims within a period of three years.” Act provides that the phrase “two or more claims within a period of three years” does not include any loss incurred from an “Act of God” incident due directly to forces of nature and exclusively without human intervention. (Amends R.S. 22:635.3(C) and 636.2(D))
SB 204 Cravins; Act 381; Effective 7/10/07

Creates an Office of Consumer Advocacy in the Department of Insurance and provides for enforcement of a policyholder bill of rights by the office. Policyholder bill of rights is a compilation of existing insurance provisions and does “not create additional causes of actions or further penalties not otherwise provided under Louisiana statutes.” (Amends R.S. 36:681(C)(1); adds R.S. 36:696 and R.S. 22:1455 and 1476)
SB 205 Cravins; Act 222; Effective 7/2/07