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Bill

HB 574

INSURANCE/RATES: Prohibits the use of certain rating factors in insurance underwriting

2025 Regular Session Introduced by Edmond Jordan and 1 co-sponsor

Louisiana bill HB 574 bans insurers from using specific rating factors in underwriting, restricting premium pricing practices to protect consumers or address equity concerns.

Read by title, under the rules, referred to the Committee on Insurance.
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Bill Summary · HB 574

Legislative bill overview

HB 574 prohibits insurance companies in Louisiana from using certain specified rating factors when underwriting and pricing insurance policies. The bill limits insurers' ability to consider particular characteristics or behaviors in their actuarial calculations. This is a restrictive measure on insurance industry pricing practices.

Why is this important

Insurance rates directly affect affordability and access to coverage for consumers. Restricting which factors insurers can consider changes who pays what premium and may reshape the insurance market's risk assessment model. This could lower costs for some groups while potentially raising them for others, depending on which factors are prohibited.

Potential points of contention

  • Actuarial accuracy vs. fairness: Insurers argue that rating factors reflect actual risk; consumer advocates argue some factors are proxies for discrimination or reflect systemic inequities
  • Market effects: Restrictions may reduce competition or cause insurers to exit the market, potentially leaving consumers with fewer options in Louisiana
  • Which factors are prohibited: The bill's specific language matters greatly—details about which exact rating factors are banned aren't specified in this summary, making it unclear whether prohibitions target zip codes, credit scores, marital status, or other metrics

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

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