SB 136 creates a new Louisiana insurance disclosure requirement called a “rate transparency report” for admitted insurers that write homeowners or private passenger automobile insurance. Each year, by January 1, insurers must file a report based on their most recently approved rate filing, and the report must generally follow a model form issued by the insurance commissioner. The report must include a graphical breakdown showing the percentage of the premium attributed to key rating factors, with the percentages totaling 100 percent.
The bill also requires insurers to provide a copy of their most recent rate transparency report to policyholders when issuing a new policy and again at renewal. The required disclosures must explain the premium impact of reinsurance, projected claims costs, loss adjustment expenses, fees and commissions, insurer profit and contingency, and any other relevant risk factors. The report must also include contact information for the Department of Insurance’s Office of Consumer Services, and insurers may include additional rate factors or information. The commissioner is authorized to adopt rules to implement and enforce the law, and the bill expressly states that it does not create a private right of action.
Impact
SB 136 adds R.S. 22:1464.1 to Louisiana insurance law and imposes new annual reporting and consumer-disclosure obligations on insurers writing homeowners and private auto coverage. It gives the insurance commissioner authority to prescribe a model report, review filings, disapprove noncompliant reports, and promulgate rules under the Administrative Procedure Act. The law is effective January 1, 2027, and it is aimed at increasing transparency around how premiums are built and what factors drive rate changes for affected policyholders.
Sentiment
The bill appears to have been broadly supported and noncontroversial in the legislative process. The recorded votes were overwhelmingly favorable, including unanimous or near-unanimous passage in both chambers and unanimous adoption of the conference report. That voting pattern suggests strong bipartisan agreement that consumers should receive clearer information about insurance pricing, especially in the homeowners and auto markets.
Contention
There is little evidence of major opposition in the available record, but the main policy tension is between consumer transparency and insurer administrative burden. Insurers may view the annual filing, model-report compliance, and mandatory delivery to policyholders as added regulatory requirements, while supporters likely see the measure as a way to improve understanding of premium increases and rate-setting practices. The bill also limits litigation exposure by stating that it does not create a private right of action, which may have been intended to reduce concern about enforcement through lawsuits.