Louisiana Governor John Bel Edwards has signed two bills into law, which aim to resolve the pressing issues plaguing the state’s unstable property insurance market.
Edwards passed the two bills, HB1 and HB2, after they passed the State Senate and House. HB1 establishes a $45 million program designed to incentivize insurance companies into writing policies in the state. Meanwhile, HB2 restricts companies that previously filed for bankruptcy from receiving the incentives.
Apart from attracting new insurance business to the state, it is hoped that HB1 will also encourage existing insurers to continue to write new policies, stabilize insurance rates, and depopulate Louisiana Citizens – the state’s insurer of last resort.
State legislature overwhelmingly passed the bills when they were proposed during a special session last week.
Insurance Commissioner Jim Donelon, who called for the special session and had pushed for the incentive program, praised Gov. Edwards’ decision to sign the bills.
“We will continue to be laser focused on stabilizing rates for homeowners and attacking this crisis head on,” the commissioner said in a release. “I want to thank Governor Edwards, President Cortez, Speaker Schexnayder, and the members of the Louisiana Legislature who worked diligently to advance this priority legislation in an overwhelmingly bipartisan fashion.”
Donelon also gave assurances that the incentive program is only one part of the state’s plan to resolve Louisiana’s insurance crisis.
“We will keep fighting for Louisiana homeowners, and this is a critical step,” the commissioner concluded.
A statement from the commissioner’s office noted that ten insurers have expressed interest in participating in the program, so far.
Do you think HB1 is the key to Louisiana’s insurance woes? Let us know in the comments below.
