2006 Louisiana Laws - RS 22:1401.1 — Rates for commercial lines of property and casualty insurance

§1401.1.  Rates for commercial lines of property and casualty insurance

A.  The office of property and casualty shall have the exclusive authority to accept, review, and approve any application for insurance rates or rate changes for all lines of commercial property and casualty insurance.  The office of property and casualty shall exercise its authority in accordance with the provisions of this Section.

B.  Subject to the exception specified in Subsection C of this Section, each filing submitted to the office of property and casualty shall be on file for a waiting period of forty-five days before it becomes effective.  Upon written application by such insurer or rating organization, the office of property and casualty may authorize a filing which it has reviewed to become effective before the expiration of the waiting period.  A filing shall be deemed to meet the requirements of this Part unless disapproved in writing by the office of property and casualty within the forty-five-day waiting period.  The office of property and casualty may by rule, regulation, or order reduce or eliminate the waiting period specified in this Section.  For any filing that is disapproved, the insurer may appeal such disapproval to the Louisiana Insurance Rating Commission within fifteen days from the receipt of written notice of disapproval.

C.  Insurers negotiating with and insuring commercial entities, except with regard to workers' compensation and medical malpractice insurance, with at least ten thousand dollars in annual insurance premiums shall be required to file insurance rates or rate changes for such entities with the office of property and casualty for informational purposes only.  The office of property and casualty may by rule, regulation, or order reduce or eliminate the annual premium threshold for commercial entities that enables rate filings to be made under this Section.

D.  All provisions of this Section shall be applicable when a competitive market in commercial lines insurance exists. The commissioner of insurance shall adopt rules and regulations to determine if there exists a competitive or noncompetitive market.  At a minimum those rules shall require reasonable notice and a hearing prior to determining a market to be noncompetitive.  If, after a hearing, the commissioner determines the market to be noncompetitive, all commercial rate filings shall follow the provisions of Subsection B of this Section without regard to the exception specified in Subsection C of this Section.

E.  No provision of this Section shall prohibit the Department of Insurance from conducting market conduct exams to ensure the rates being charged by insurers are adequate, not excessive, or unfairly discriminatory.

Acts 2004, No. 878, §1, eff. Jan. 1, 2005.