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HB 413

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

2026 Regular Session Introduced by Kim Carver and 1 co-sponsor

Louisiana HB 413 bans auto rate filings from using catastrophe-related loss experience that only affected other lines, except in multi-line policies.

Signed by the Governor. Becomes Act No. 159.
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Bill Summary · HB 413

Bill Summary - HB 413 (Louisiana 2026 Regular Session)

Title

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

Purpose and Intent

  • To revise how automobile insurance rates are permitted to be determined in Louisiana.
  • Specifically, the bill prohibits including in an automobile insurance rate filing any rating factor that is based solely on loss experience from a catastrophe or natural disaster that only affected other lines of insurance.
  • It preserves the ability of insurers to use other relevant actuarial factors and to consider factors applicable to multi-line policies.

Key Provisions

Amended and Added Statutes

  • Amends R.S. 22:1454(B)(5) and adds R.S. 22:1454(B)(6).

Prohibition on Catastrophe-Based Rating Factors (Automobile Insurance)

  • An insurer may not include in an automobile insurance rate filing a rating factor that is based solely on loss experience arising from a catastrophe or natural disaster that exclusively affected lines of insurance other than auto.
  • Example concept: If a catastrophe primarily impacted homeowners or commercial lines, the loss experience from that catastrophe cannot be used as the sole basis for auto rate factors.

Exception for Multi-Line Policies

  • The prohibition does not apply to rating factors used in multi-line policies. In other words, catastrophe-related loss experience may be considered in a multi-line policy context, but not as a standalone auto rate factor.

Other Relevant Factors

  • The bill retains authority to consider any other relevant factors available at the time of the rate filing, including factors aligned with accepted actuarial standards.

Effective Date

  • The act becomes effective on January 1, 2027.

Who Would Be Affected

  • Carriers and insurers offering automobile insurance in Louisiana.
  • Rate filing actuaries and regulators evaluating property and casualty rate filings.
  • Policyholders, who could see changes in how auto rates are justified and potentially in rate volatility or predictability depending on how catastrophe-related data is used in other lines.

Procedural and Timeline Details

  • Passed favorable in committee and on the House floor with an effective date of 2027.
  • The bill amends the Louisiana Revised Statutes (R.S. 22:1454) and thus would govern rate filing review by the commissioner (the state insurance regulator).

Practical Impact and Considerations

  • Aims to prevent cross-line catastrophe losses from unduly influencing automobile insurance rates when those losses did not affect auto specifically.
  • Encourages reliance on auto-relevant actuarial factors and data, potentially leading to more accurate auto rate representations.
  • Maintains flexibility for multi-line products to use catastrophe-related experience as part of the overall pricing equation.
  • Could affect how insurers respond to broad regional catastrophe events and how such events are reflected in auto pricing.

If you’d like, I can provide a concise one-page briefing or a side-by-side comparison with current law to illustrate the exact changes.

Compiled from official sources — confirm details with the bill’s official record.

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