Louisiana House Bill HB413

Louisiana 2026 Regular Session

• Introduced: 2/25/26
• Refer: 2/25/26
• Refer: 3/9/26
• Report Pass: 3/18/26
• Engrossed: 3/25/26
• Refer: 3/30/26
• Report Pass: 4/22/26
• Enrolled: 5/11/26
• Chaptered: 5/15/26
• Passed: 5/15/26

Caption

INSURANCE: Prohibits an insurer from utilizing a rating factor in an automobile insurance rate filing

Summary

HB 413 amends Louisiana’s insurance rating standards to limit how insurers may use certain catastrophe-related loss experience when setting automobile insurance rates. Specifically, it prohibits an auto insurer from using a rating factor in an automobile rate filing that is based solely on losses from a catastrophe or natural disaster that affected only other lines of insurance, such as homeowners or property coverage. The bill preserves an exception for multi-line policies, allowing insurers to consider such factors when the policy covers multiple lines of business. The bill also adds language clarifying that insurers may consider other relevant factors available at the time of the filing, including rates developed under accepted actuarial standards. The act becomes effective January 1, 2027, and amends Louisiana Revised Statutes 22:1454, which governs rating standards and methods for determining whether insurance rates are excessive, inadequate, or unfairly discriminatory.

Impact

HB 413 narrows the range of rating factors that may be used in automobile insurance rate filings by preventing insurers from shifting losses from catastrophes or natural disasters in other insurance lines into auto rates. It modifies R.S. 22:1454(B)(5) and adds R.S. 22:1454(B)(6), affecting insurers, rate filers, and regulators reviewing auto insurance pricing. The law is intended to keep auto premiums from reflecting losses unrelated to auto risk, while still allowing actuarially supported factors and multi-line policy considerations.

Sentiment

The bill appears to have been broadly supported, passing the House unanimously 96-0 and ultimately being signed into law as Act 159. The available record shows no committee transcript debate, suggesting little publicly recorded controversy in the materials provided. Overall, the sentiment around the bill is favorable, with lawmakers endorsing a targeted restriction on insurance rating practices.

Contention

The main policy issue is whether insurers should be allowed to incorporate catastrophe-related losses from other lines of insurance into automobile rates. Supporters of the bill appear to favor separating auto pricing from unrelated property or catastrophe losses, likely to protect consumers from cross-subsidizing other lines. The bill’s exception for multi-line policies and its preservation of actuarially accepted factors indicate a balancing concern from insurers and regulators that legitimate pricing methods should remain available.