A Louisiana bill that would make it easier for private flood insurance carriers to offer flood insurance in the state has been sent back to the House to contemplate amendments added by the Senate.
House Bill 577, by Rep. Scott McKnight, is backed by Insurance Commissioner Jim Donelon; it would give consumers choices beyond the National Flood Insurance Program.
The legislative analysis of the bill states it “would permit insurers to file flood rates and immediately begin using them. Insurers could subsequently adopt new rates provided they file change paperwork with the LDI within 30 days of use.”
This file and use/use and file system for private flood coverage would stay in place until Jan. 1, 2027. After that the filing policy would revert to a prior approval system.
“All rates would be subject to regulation by the LDI with the same rigor as with its ‘prior approval’ analysis of other property and casualty rates. The bill is modeled on a similar Florida law that has increased the market share of private flood insurance in that state,” the legislative digest states.
A couple of provisions that apply to insurance producers concern required written notices to residential private flood insurance applicants. One notice would require the producer to inform applicants that “(a) Coverage under the National Flood Insurance Program is provided at a subsidized rate. (b) If the applicant discontinues coverage under the National Flood Insurance Program, the full risk rate may apply to the property if the applicant later seeks coverage under the National Flood Insurance Program.”
Producers must also inform applicants that do not already have flood coverage that coverage is available from the NFIP.
Amendments added to the bill after its initial filing would require insurers to add policy language describing similarities and differences between the private flood insurance offering and coverage from the NFIP, such as whether the private offerings provide more or less coverage than NFIP policies do.
Top 20 Private Flood Insurers in Louisiana – 2020
|Company||Direct Premium Written||Market Share|
|American Security Insurance Co.||$3,115,939||16.39%|
|Arch Specialty Insurance Co.||$3,038,671||15.98%|
|Westport Insurance Corp.||$2,001,354||10.53%|
|Agent Alliance Insurance Co.||$1,210,065||6.36%|
|Western World Insurance Co.||$1,153,274||6.07%|
|Zurich American Insurance Co.||$1,120,789||5.90%|
|Employers Insurance Co. of Wausau||$918,312||4.83%|
|Integon National Insurance Co.||$811,988||4.27%|
|Landmark American Insurance Co.||$779,754||4.10%|
|Lexington Insurance Co.||$732,791||3.85%|
|Xl Insurance America Inc.||$708,402||3.73%|
|Allianz Global Risks Us Insurance Co.||$554,690||2.92%|
|National Fire & Marine Insurance Co.||$503,872||2.65%|
|American Guarantee and Liability Insurance Co.||$391,628||2.06%|
|Aig Property Casualty Co.||$299,567||1.58%|
|Wright National Flood Insurance Co.||$296,746||1.56%|
|Liberty Mutual Fire Insurance Co.||$268,077||1.41%|
|First Specialty Insurance Corp.||$207,929||1.09%|
|Steadfast Insurance Co.||$153,928||0.81%|
|General Star Indemnity Co.||$131,466||0.69%|
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