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Started By
Message
re: Louisiana Legislature repeals law blocking homeowner’s insurance cancellations
Posted on 5/1/24 at 4:00 pm to CoachChappy
Posted on 5/1/24 at 4:00 pm to CoachChappy
quote:
Who does this law help? It sounds like it helps insurance companies more than the people of Louisiana.
That's precisely who hit helps.
Gabe Firment, a North Louisiana Republican, ran this bill.
1
Posted on 5/1/24 at 4:00 pm to Tiger Prawn
quote:
The reasoning behind this bill is meant to help people by attracting new insurance companies to the state.
Thank you. I'm not a smart man, but even I understood the start of the thread
Posted on 5/1/24 at 4:04 pm to Lee Chatelain
quote:
Nah, it's not. Companies tend to do more in a state where there are less restrictions.
you're a fool. and you took the bait.
quote:
Both of those comments are assumptions.
not assumptions. i've sat here and watched carriers cancel every piece of business they could and only stayed on what they legally had to. This will generate 99% more non renewals to the 1% it may generate new business over the next 5 years plus. we are in an insurance climate disaster and this timing of this bill passing couldn't be worse.
Posted on 5/1/24 at 4:04 pm to Y.A. Tittle
quote:
I currently can't get homeowners insurance from ANY private provider, despite never making a claim in 18 years.
The thought is, this may open up the market to insurers willing to offer me something.
What's your plan (or one you've seen) that you think might help me get private insurance otherwise?
What's the reason you can't get insurance? Are you in a high risk flood zone?
Posted on 5/1/24 at 4:05 pm to Y.A. Tittle
quote:
What's your plan (or one you've seen) that you think might help me get private insurance otherwise?
The 3-year rule prohibits insurance companies from raising deductibles and canceling or not renewing homeowner policies in effect for more than three years. If you don't have insurance available now, this does nothing to help you access insurance.
An insurance company could write an insurance policy for your home and literally, within one year from you getting insurance and paying premiums, cancel your policy or hike your deductible to an unreasonable amount. This could mean that an insurance company could write you a policy in early September and then cancel it at anytime within that one year from you obtaining insurance, because you no longer have the three year rule protecting you.
Repealing the 3-year rule was only meant to help insurance companies collect more premiums, and not to help those who couldn't obtain insurance suddenly have the ability to obtain it.
This post was edited on 5/1/24 at 4:06 pm
Posted on 5/1/24 at 4:08 pm to CreoleTigerEsq
Now that a few others have chimed in it must definitely be a good thing based on who is pissed.
Posted on 5/1/24 at 4:10 pm to CreoleTigerEsq
I think you understand nothing correctly.
Posted on 5/1/24 at 4:10 pm to Tiger Prawn
quote:
The reasoning behind this bill is meant to help people by attracting new insurance companies to the state.
Bold strategy cotton.
Posted on 5/1/24 at 4:13 pm to TDTOM
quote:
Now that a few others have chimed in it must definitely be a good thing based on who is pissed.
I'm not pissed. I was able to obtain insurance (had it since I purchased my home) prior to the repeal of the 3-year rule. My home is insured and my deductible is reasonable.
The people who are convinced that repealing this rule opens insurance companies for business to write policies for them that they couldn't obtain previously don't get that they couldn't obtain insurance not because of consumer protections (the 3-year rule), but because their property is likely low-lying or near the coast ( in a state ripe for hurricane exposure), increasing the risk to any insurer that would likely carry them. Insurance companies are in the business of making profits and lowering their risk exposure.
Don't be surprised if you have an influx of companies start writing policies after hurricane season ends and starts cancelling them right before it begins the following year.
This post was edited on 5/1/24 at 4:16 pm
Posted on 5/1/24 at 4:14 pm to CreoleTigerEsq
quote:
My home is insured and my deductible is reasonable.
What the frick do you keep yapping about
Posted on 5/1/24 at 4:19 pm to CreoleTigerEsq
quote:
Don't be surprised if you have an influx of companies start writing policies after hurricane season ends and starts cancelling them right before it begins the following year.
Doesn't seem like a very sustainable business model, unless you assume every homeowner would be subject to a gag order over telling their friends and neighbors about such practice.
This post was edited on 5/1/24 at 4:20 pm
Posted on 5/1/24 at 4:20 pm to Y.A. Tittle
I think this dude thought the three-year-rule protects new business for three years
This post was edited on 5/1/24 at 4:21 pm
Posted on 5/1/24 at 4:23 pm to Y.A. Tittle
quote:
Doesn't seem like a very sustainable business model, unless you assume every homeowner would be subject to a gag order over telling their friends and neighbors about such practice.
Friends and neighbors can tell their friends anything that they want about whatever business practices they are subject to with a private business.
Why would a business (specifically an insurer) want to repeal a law not only granting a consumer protection, but also regulating how and when they could either increase a deductible or cancel an insurance policy?
Insurance companies are profitable only when they mitigate (or reduce) risk and when they are able to maximize profits related to the premiums they collect and deductibles they can collect. That's not really rocket science.
Posted on 5/1/24 at 4:29 pm to CreoleTigerEsq
quote:No they cannot. They can non-renew you at the end of that one year term, but they can't just make up a reason to cancel you midyear
This could mean that an insurance company could write you a policy in early September and then cancel it at anytime within that one year from you obtaining insurance, because you no longer have the three year rule protecting you.
In the very first year of the policy, the insurance company can cancel a policy within the first 60 days for just about any reason. This is primarily used as the inspection period for the insurance company. It allows the insurer time to inspect the property and then issue cancellations if the property either is in unacceptable condition or has unacceptable liability hazards. Once you get beyond the first 60 days of the policy, the insurer can non-renew you but not cancel you midterm (except for instances of fraud). Repealing the 3 year rule does not change this.
ETA: and if they wrote you a policy in early September, then the 3 year rule wouldn't have even applied to you anyways until after you received your September 2027 renewal.
This post was edited on 5/1/24 at 4:31 pm
Posted on 5/1/24 at 4:32 pm to 4cubbies
quote:They may just have. Now you may still be able to get homeowner's insurance in LA next year.
I wonder if this administration will ever do anything to actually help a single person living in thiis state.
Posted on 5/1/24 at 4:33 pm to CreoleTigerEsq
quote:
Don't be surprised if you have an influx of companies start writing policies after hurricane season ends and starts cancelling them right before it begins the following year.
The 3 year rule only protected policyholders AFTER they had been with a company for over 3 years. 3 year rule did absolutely nothing to protect them for the first 3 years.
Posted on 5/1/24 at 4:36 pm to Chad504boy
quote:
. we are in an insurance climate disaster
Nice Freudian slip
Posted on 5/1/24 at 4:37 pm to Tiger Prawn
If I am not mistaken the only way they can cancel mid year is either lying on the application or failing to pay premiums.
Posted on 5/1/24 at 4:39 pm to CoachChappy
Who bails out insurance companies?
Of course it won't help those who will be fricked over the most
Of course it won't help those who will be fricked over the most
Posted on 5/1/24 at 6:14 pm to 4cubbies
I don’t see how this change will bring in new market competitors, which is the only way we get at least some more availability. We are a massive risk.
As much as I despise this thought, I’m really starting to wonder if this problem can be solved by the private sector. The private sector exists to make a profit and that’s very hard to do here right now, or very risky to attempt to do so.
As much as I despise this thought, I’m really starting to wonder if this problem can be solved by the private sector. The private sector exists to make a profit and that’s very hard to do here right now, or very risky to attempt to do so.
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