Committee advances bill requiring insurers to notify department when they start, stop or resume writing coverage in areas
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Summary
Senate Bill 137, reported with amendments, would require property-and-casualty insurers to notify the Louisiana Department of Insurance when they begin, cease or resume writing coverage in a ZIP code, parish, or region; the notices would be exempt from public records.
Senate Bill 137, a department-sponsored measure, was reported with amendments after the committee approved a technical amendment and discussed confidentiality and market effects.
Under the bill, authorized property-and-casualty insurers would notify the Louisiana Department of Insurance if they begin writing, cease writing, or resume writing coverage in a particular ZIP code, parish or region — whether temporarily or for the foreseeable future. The bill specifies the information submitted will be exempt from public records.
Barrow Peacock, chief deputy at the Louisiana Department of Insurance, said the notification is intended to make the department aware of market activity and to preserve confidentiality so one company’s business decision cannot be used by competitors to gain advantage. “So the department will know,” Peacock said, describing the department’s ability to monitor market changes without spreading the information publicly.
Senator DuPlessis asked how proprietary protections would differ from other transparency proposals on the agenda. Peacock said the confidentiality exemption is intended to prevent other companies from using notice of a pullback to change their market behavior.
The committee adopted a technical amendment and, on a motion by Senator Edmonds, reported SB 137 with amendments. The bill moves to the full Senate for further consideration.