Louisiana Governor Mike Foster signed a bill allowing insurers two rate filings before the Louisiana Insurance Rating Commission (LIRC). The new law also allows insurers to revert to previous lower or higher rates after being granted permission to charge a higher or lower rate without requiring another application to LIRC, if the rate change is “actuarially justified.” The National Association of Independent Insurers (NAII) expressed disappointment with the new law. NAII counsel Greg LaCost lamented that the amendment would create another layer of bureaucracy. LaCost noted insurers are concerned about how the LIRC will interpret “actuarially justified” rate changes—and fear that the commission will reject recommended rate increases. Another sticking point is the stipulation that insurers must give policyholders a 30-day notification before any rate change. LaCost asserted that misinterpretations of notifications could cause an increase in class-action lawsuits against carriers. The law goes into effect June 17.
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