Session Scoop: March 29, 2024

Week 3 Report

Real Estate Licensing

HB 155, by Representative Thomas

Status: Pending Senate Commerce, Consumer Protection and International Affairs

Position: Support

This bill would clarify that a salesperson or broker who fails to renew their license by January 1st does not have to complete the pre-licensing or post-licensing education hours required of a first-time applicant to return their license status to active status. It also would clarify that a broker who fails to renew their license by January 1st could renew their broker license without having to spend five years requalifying as a salesperson.

Property Rights

SB 308, by Senator Heather Cloud

Status: Pending Senate Judiciary A Committee

Position: Support

SB 308 would address issues with unauthorized squatters who occupy private property. The bill aims to quickly restore possession of such property to the lawful owner. The bill would allow a property owner to institute an executory proceeding to remove a squatter or trespasser from private property by submitting an authentic act evidencing ownership or title to the property. 

Property Management

HB 407, by Representative Stagni

Status: Notice given subject to call - House final passage

Position: Support

House Bill Number 407 by Representative Joe Stagni would create “The Louisiana Support and Service Animal Integrity Act”. If passed, it would prohibit healthcare providers from producing documentation relating to an individual's need for a support animal unless they satisfy certain requirements. It would also prohibit the misrepresentations of service dogs and require written notices for individuals and businesses that sell support animals. Additionally, it would limit liability for owners and lessors for damages caused by a service dog or support animal.

Property Insurance Bills

The momentum continues to grow in the Louisiana Legislature’s push to move forward bills that would make Louisiana's insurance laws more like those in other coastal states. The goal of these bills is to attract more property insurers to Louisiana. While the bills are not guaranteed to accomplish this goal, we know the status quo is unsustainable.

HB 428, by Representative Delisha Boyd

Status: Pending House Insurance Committee

Position: Support

This bill would allow a Louisiana Citizens’ policyholder to request to limit or exclude coverage of personal or movable property on their policy. It further would require Citizens to calculate an appropriate reduction in the premium and return the reduction to the policyholder if either of these options was exercised. 

SB 295 by Senator Heather Cloud and HB 613 by Representative Gabe Firment

Status: Pending House Referral/Pending Senate Introduction

Position: Support

SB 295 passed the Senate and is now off to be heard in the House and HB 613 passed the House and is now off to be heard in the Senate.

These bills would change Louisiana from requiring "prior approval" of proposed insurance rates to a "file & use" system of approving insurance rates, thereby allowing insurers to begin using an actuarily sound market rate subject to receiving the approval of the Commissioner of Insurance within 30 days. This would allow insurers to manage their business better and have more flexibility to price their products.

SB 323 by Senator Kirk Talbot

Status: Pending House Referral

Position: Support

SB 323 passed the Senate and is now off to be heard in the House.

This bill would establish and clarify the rights, duties, and timelines imposed on both the policyholder and insurer to ensure swift resolution of an insured’s claims, including offering insurance companies cure periods to make things right. It would retain the insured's ability to file a bad faith claim and receive damages. The law must allow policyholders to force the insurance company to pay what they owe after a storm, without needing to hire an attorney. 

When an insurance company is intentionally underpaying, delaying payment, or otherwise hurting policyholders, they should be heavily penalized, but the claims process must be clear and fair for both the policyholder and the insurer.

SB 370 by Senator Adam Bass and HB 611 by Representative Gabe Firment

Status: Pending House Referral/Pending Senate Introduction

Position: Support

SB 370 passed the Senate and is now off to be heard in the House and HB 611 passed the House and is now off to be heard in the Senate.

With a few exceptions, Louisiana’s 3-year rule essentially prohibits an insurer from canceling or non-renewing a property insurance policy if it is in place for three years. Louisiana is the only place on the planet with this type of law giving us a notorious reputation in the insurance industry worldwide.

These bills would sunset this rule so that it no longer applies to new policies going forward. 

It would also allow insurance companies to non-renew up to 5% of their policies currently protected by the law, each year. This would minimize the impact on the overall market, thereby allowing the relatively few policyholders who are nonrenewed time to find coverage with another insurance company.

Amendments were added to HB 611 that do the following:

1. Prohibit an insurer from charging a homeowners' policy deductible that exceeds 5% of a dwelling's replacement cost value, unless the insured requests otherwise.

2. Limit non-renewals to no more than 5% of the insurer's policies in any one parish.