(The Center Square) – The Louisiana Legislature has passed a bill that would give the state insurance commissioner broader authority to regulate insurance rates − including the power to declare rates “excessive” regardless of market conditions.
The bill now heads to the governor’s desk.
House Bill 148, authored by Rep. Jeff Wiley, R-Maurepas, eliminates the legal distinction between “competitive” and “noncompetitive” insurance markets, a framework that previously limited when the commissioner could intervene.
By law, rates can only be declared excessive in noncompetitive markets. The bill repeals that restriction and applies a uniform standard.
The bill also updates the definition of “excessive” rates to include cases where administrative or overhead costs are too high for the services provided.
This provision was introduced through an amendment and had been proposed in several failed bills earlier in the session. Insurance Commissioner Tim Temple opposed those earlier efforts and has continued to voice concern.
In a letter to lawmakers, Temple warned that the bill would grant the commissioner “unfettered power to deny any rate based on only the subjective belief that it is too high,” without adequate guardrails. He said that the changes could destabilize the already fragile insurance market by discouraging insurers from doing business in Louisiana.
“Insurers rely on a predictable regulatory framework to make informed business decisions,” Temple wrote. “Allowing – and frankly encouraging – subjective disapprovals could lead to inconsistent regulatory actions … ultimately harming consumers by limiting their choices and driving up premiums.”
The Insurance Council of Louisiana echoed Temple’s concerns, warning that HB148 would make Louisiana an “outlier” in several areas of insurance regulation. The group pointed to provisions that allow the commissioner to retroactively declare previously approved rates excessive and potentially require insurers to issue refunds − without a defined time limit.
It also criticized a new disclosure requirement that would compel insurers to release confidential rate filings before an appeal can be resolved.
“These issues … make Louisiana’s insurance rate and confidentiality laws different than almost every other state,” the group wrote. “The likelihood is that it will cause bad outcomes.”
Temple also criticized the way the measure advanced. After the House of Representatives rejected a similar proposal by Rep. Robby Carter, D-Amite, the language was revived and inserted into Wiley’s bill via an amendment by Rep. Brian Glorioso, R-Slidell.
“As it relates to the changes that are being made, it simply gives the commissioner the ability to make that determination,” Glorioso said while presenting the amendment. “It does not require him to do anything. There are factors that he is to consider … we’re just adding real language – another factor that may be considered.”
In addition to reshaping rate regulation, the bill requires insurance companies to disclose a policyholder’s previous premium amount when renewing homeowners or private passenger motor vehicle policies. Insurers must prominently display the prior premium alongside the new one, a move supporters say will improve transparency for consumers.
The legislation follows mounting pressure from Democratic lawmakers like Sen. Royce Duplessis, D-Orleans, who have called for greater accountability from insurers rather than continuing the legislature’s focus on tort reform.
Temple, however, contends that the real driver of high auto rates is an “excessive” number of bodily injury claims – and that the Legislature’s focus should remain on reforms to reduce claim costs.
“HB148 and SB247 will reverse the positive trends we are seeing and could stifle any progress this session might otherwise achieve,” Temple said, referencing a separate Senate bill carrying similar provisions. “This is not the path for Louisiana. We cannot overregulate our way out of this crisis.”
The Insurance Council also warned that HB148 could undercut other pending reform bills – such as those addressing Louisiana’s comparative negligence rules and litigation costs – by introducing instability into the regulatory environment.
“While this bill may come out of good intentions,” said ICL Executive Director Rodney Braxton, “the likelihood is that it will cause bad outcomes.”
