On May 7, LOU LEG passed bill relating to homeowners' insurance.
LOU LEG passed HB 611 re homeowners' insurance, to provide for homeowners' policies in effect for 3 or more years, clarify deductibles and modification of coverages.
Insurer providing property, casualty insurance cannot cancel or fail to renew a homeowner's policy of insurance in effect and renewed for more than three years.
Unless based on nonpayment of premium, fraud of insured, material change in risk being insured, 2 or more claims within continuous 3-year period of time within 5 years.
Additionally, if continuation of such policy endangers the solvency of the insurer.
Does not apply to an insurer that withdraws from the homeowners' insurance market or to the modification of policy deductibles for homeowners' policies in this state.
Coverage modification at time of renewal is not cancellation or failure to renew policy.
For policies in place for at least 3 years on or before Aug. 1, 2024, an insurer can renew up to 5% of its customers' policies per calendar year for any reason.
Legislative History
On Mar. 1, 2024, bill was introduced in House; on Mar. 27, 2024, bill passed House.
On Apr. 2, 2024, bill was introduced in Senate; on Apr. 24, 2024, amended bill passed.
On Apr. 29, 2024, Senate concurred; on May 7, 2024, signed into law, assigned Act. 9.
Effectiveness
Bill provisions become effective on Jan. 1, 2025.
Regulators
LOU LEG
Entity Types
Ins
Reference
Act 9, Bill HB611, 5/7/2024; Citation: *LOU INS* 22:1265, 22:1333;
