An article in the July 5, 2004 edition of Insurance Journal – Texas/South Central contained incorrect information regarding the contents of Louisiana’s recently passed House Bill 1514.
The “News Currents” article, “Louisiana Legislature Completes 2004 Regular Session With More Reforms,” stated incorrectly that the bill “provides for a file-and-use rating system for commercial insurance policies with premiums more than $100,000, and a flex-band system for commercial insurance policies less than $100,000.”
Taking rate-setting authority for commercial lines away from the Louisiana Insurance Rating Commission, HB 1514 provides that the Louisiana Department of Insurance “office of property and casualty shall have the exclusive authority to accept, review, and approve any application for insurance rates or rate changes for all lines of commercial property and casualty insurance.”
Insurers may appeal any rate disapprovals “to the Louisiana Insurance Rating Commission within fifteen days from the receipt of written notice of disapproval.”
For commercial policies over $10,000, except in the case of workers’ compensation and medical malpractice insurance, the bill states that insurers “shall be required to file insurance rates or rate changes for such
entities with the office of property and casualty for informational purposes only. The office of property and casualty may by rule, regulation, or order, reduce or eliminate the annual premium threshold for commercial entities that enables rate filings to be made under this Section.”
Topics Louisiana Property Casualty
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