Senate Bill 136, a measure to require private passenger auto and homeowners insurers to file rate-transparency reports and provide personalized transparency reports to consumers when offering new or renewal policies, was reported favorable by the Senate Insurance Committee.

The bill would require insurers to include specified items in the departmental filing and to give consumers a personalized breakdown when selling or renewing coverage. Barrow Peacock, chief deputy at the Louisiana Department of Insurance, told the committee the filing should list items such as the cost of reinsurance, claims, defense and containment costs, fees and commissions, profit and contingencies, and other relevant risk factors. He said the filing could include a graphical chart to help purchasers understand where premium dollars are going.

Peacock said the proposal also calls for disclosure of major adverse findings against the insurer, whether the insurer uses affiliate entities or managing general agents, changes in total insured value from the prior year, and contact information for the department. “So, this is a consumer friendly bill,” Peacock said.

A motion from Senator DuPlessis to report SB 136 favorable carried with no objection; the bill was reported favorable by the committee.

What happens next: SB 136 moves to the full Senate for further consideration.