The Louisiana Department of Insurance will hold a public hearing Feb. 21 amid the state's homeowners insurance crisis.
What's happening?
The event, set for 10 a.m. at the Poydras Building in Baton Rouge, will allow residents to address the proposed revocation of the so-called three-year rule and other issues, KPLC 7 News of Lake Charles reported.
State lawmakers last year passed legislation to allow insurance companies to cancel coverage for 5% of the policies they've had for three years or more. The Pelican State previously banned carriers from raising rates, increasing deductibles, and denying coverage to such homeowners.
The legislation was to take effect Jan. 1, but since regulations have not been finalized, insurance companies have not submitted plans to drop policies, per KPLC.
"No matter what percentage they're using, they have to submit a plan to the Department of Insurance for approval. That's to ensure to the consumer the public's best interests are met," Louisiana Insurance Commissioner Tim Temple told KPLC.
Why is this important?
Louisiana is among the states hardest hit by the effects of increasingly frequent and severe extreme weather events. Situated on the Gulf Coast, the Bayou State is often the site of hurricanes, which have become more intense with Earth's rapidly rising temperature.
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This stretches insurance carriers that have to pay out claims to cover damages and losses, and the industry is increasingly dropping customers, not renewing policies, and leaving risky areas, regions, and states.
Louisiana's proposed changes to the market will supposedly help consumers, but critics are skeptical. "The insurance industry said that this package of reforms — highlighted by ending the three-year rule — was going to drive prices down by creating more competition, and we haven't seen that yet," Louisiana Progress Executive Director Peter Robins-Brown told New Orleans' Fox 8 in December.
Temple said the crisis could be solved by giving homeowners more options but that forcing companies to carry policies was a nonstarter.
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Definitely 🙁 "We're in an insurance crisis. This is — part of what was collectively agreed upon — a barrier to entrance for insurance companies who want to come to do business in Louisiana. We're the only state that has this law in effect, the only jurisdiction on the planet that has this law in effect," Temple told KPLC.
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What's being done about the insurance crisis?
While Louisiana tries to find a way out of this mess, which could create a blueprint for other states, the best thing we can do is act to eliminate pollution produced by the use of dirty energy, which would have a cascading effect on people, property, wildlife, and Earth.
To create a greener, cleaner, and safer future, you can invest in community solar or solar panels to power your home. Check out other upgrades to electrify, which can also save you big bucks.
Smaller changes such as cutting out plastic, using alternate modes of transportation, and changing your buying habits can also help.
You can make the greatest change by fighting for the future. If you live in Louisiana, for example, clear your calendar for the Feb. 21 hearing.
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