Session Scoop: March 22, 2024
Bill Tracking Report as of 3/22/2024
Week 2 Report
Real Estate Licensing
HB 155, by Representative Thomas
Status: Pending Senate referral
Position: Support
Clarifies 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 clarifies that a broker who fails to renew their license by January 1st can renew their broker license without having to spend five years requalifying as a salesperson.
Property Insurance Bills
This week, the House and Senate Insurance Committees moved 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.
SB 295 by Senator Heather Cloud and HB 613 by Representative Gabe Firment
Status: Pending Senate/House Floor Action
Position: Support
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 Senate Floor Action
Position: Support
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 and attorney fees.
SB 370 by Senator Adam Bass and HB 611 by Representative Gabe Firment
Status: Pending Senate/House Floor Action
Position: Support
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 allow insurers to slowly remove policies held under this law and provide that any policies written after August 1st would not be subject to the 3-year rule. It would also allow insurance companies to non-renew up to 5% of their property policies currently protected by the law annually subject to certain conditions.
HB 611 does differ from SB 370 in that it prohibits an insurer from charging a homeowners' policy deductible exceeding 5% of a dwelling's replacement cost value unless the insured requests otherwise.
HB 120, by Representative Willard
Status: Pending House Floor Action
Status: Support
The Louisiana Fortify Homes Program is scheduled to expire on June 30, 2025. This bill would remove the expiration date and allow the program to continue. It is important to note that even if the program is not allowed to expire, it will still need to be funded for future years.
Lawsuit Reform
HB 336, by Representative Chenevert
Litigation financing is when a third party provides money to a party or lawyer involved in a civil lawsuit to pay expenses related to pursuing the claim – court fees, experts, etc. However, litigation lenders are not bound to the same ethical rules as attorneys, so there is little stopping funders from interfering like pressuring clients to settle – or not.
This bill requires a plaintiff's attorney to disclose third-party litigation financing to the defendant and the court. The bills also prohibit the third-party financier from being involved in decisions related to the strategy and settlement of the case.
