AIA Endorses Louisiana Department Of Insurance Legislative Package Focused On Homeowners And Auto Issues

Baton Rouge, LA - Homeowners and auto insurance issues will once again be front and center for the 2008 Louisiana legislative session, said the American Insurance Association (AIA).

"Continuing the great work of the legislature since Hurricanes Katrina and Rita struck Louisiana, it is important to continue to find ways to improve the insurance market in the state and attract more insurers to the state," said John Marlow, AIA assistant vice president, Southwest region. "The Department of Insurance's legislative package of bills will not only encourage more competition in the homeowners market but will also establish more certainty in the insurance market and therefore encourage more insurers to come do business in Louisiana."

The Louisiana Department of Insurance's legislative package includes a variety of bills covering all lines of insurance. SB 160, sponsored by Sen. Don Cravins, allows for varying deductibles for homeowners policies in different regions of the state.

"SB 160 offers insurers greater flexibility in the products they offer to northern Louisiana vs. coastal Louisiana. Now insurers will be able to price their policies based on the risk their policyholders face in different parts of the state and, in some cases, write policies where they haven't been able to before," continued Marlow.

SB 334, sponsored by Sen. Julie Quinn, reforms the Property Insurance Association of Louisiana (PIAL) by allowing the DOI to contract with a private rating organization to determine different fire ratings around the state.

"The current fire rating system is too political and it shouldn't be – there is a clear set of criteria to determine fire ratings. By reforming the PIAL, Louisiana will join 45 other states with a similar system and add more certainty for insurers looking to do business in the state," continued Marlow.

HB 1096, sponsored by Rep. Kleckley, provides for an extension of uninsured motorist coverage to commercial umbrella policies that offer coverages that don't apply, including general liability, commercial property, etc.

"By passing HB 1096, the legislature will clean up the statutory language to only apply to auto insurance and not other coverages that don't apply," said Marlow.

SOURCE: American Insurance Association