BATON ROUGE, La. (KALB) – State House Insurance Committee Chairman and Cenla State Representative Gabe Firment recently discussed Louisiana’s ongoing efforts to reform insurance policies during an interview with KALB at the state capitol.
Firment expressed optimism about progress made in property insurance reform, describing it as a successful endeavor. “I think as far as accomplishing the goals when it comes to property insurance reform, it’s been a slam dunk,” he stated.
State lawmakers, in collaboration with newly-elected Insurance Commissioner Tim Temple, are spearheading initiatives to enhance insurance standards across the state through multiple bills introduced in the legislature.
Reflecting on the efforts, Firment remarked, “I think Commissioner Temple has worked hard with the legislature to give us his vision for moving us in the right direction and for attracting new insurance companies.”
Among these bills is House Bill 611, which seeks to address the issue of policy cancellations after three years by allowing insurers to adjust deductibles at renewal without invoking cancellation or nonrenewal. Firment noted that Louisiana is the only location globally with this regulation, arguing that it has unintended consequences contrary to its purported consumer-friendly nature.
Firment highlighted another critical development: pending Governor Jeff Landry’s approval, new policies effective August 1, 2024, would be exempt from the aforementioned rule if HB 611 advances through the legislature.
Senate Bill 323 is another pivotal measure aimed at insurance reform. According to Firment, this bill proposes a 60-day period for insurers and policyholders to resolve disputes before resorting to legal action, aiming to streamline the claims process and provide greater clarity.
Discussing the potential impact of these reforms, Firment emphasized their significance in stabilizing the insurance market and potentially curbing premiums. “I’m very confident that the legislation that’s being passed on the property side will create a more favorable environment and will give consumers options that ultimately will lead to a more stable market and hopefully downward pressure on premiums,” he concluded.
The proposed reforms underscore a concerted effort by Louisiana’s legislative and regulatory bodies to address longstanding insurance challenges and foster a more resilient insurance landscape in the state.
