NEW ORLEANS — In your Breakdown: an important insurance-company-friendly bill is headed to the Governor’s Desk and is expected to become law in Louisiana.
House Bill 611 repeals Louisiana’s unique 3-year rule, which prohibited insurers from dropping policies that have been held for at least three years.
If it does become law, insurance companies can drop up to 5 percent of their policies each year for any reason, as long as they’re not all in one parish. However, they can still drop more than 5 percent if the insurance commissioner approves it.
This is part of a package of bills pushed by State insurance commissioner Tim Temple. He told our Brandon Walker it is the key to attracting companies to do business in Louisiana.
But Louisiana Democrats claim this bill – and others on the table that make it easier for companies to raise rates and give them more time to pay out claims after a storm – will further devastate the insurance landscape in Louisiana.
If House Bill 611 is signed by the governor, it will go into effect immediately.
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