La. Admin. Code tit. 37 § XIII-13509

Current through Register Vol. 50, No. 6, June 20, 2024

Section XIII-13509 - Business Plan for Authorized Property and Casualty Insurers; Approved Unauthorized Insurers

A. Any authorized property and casualty insurer that makes a filing pursuant to R.S. 22:1464 for authorization to deviate from the requirements of R.S.22:1333(C) and 22:1265(D)concerning deductibles for named storms and hurricanes shall file with the Commissioner a business plan setting forth the insurer's plan to write new business in the state of Louisiana. The business plan shall include, but not be limited to the following:

1. a written description of each proposed region for which mandated, minimum regional deductibles will vary;

2. a statewide graphic representation of each proposed region for which mandated, minimum regional deductibles will vary;

3. the proposed mandated minimum regional deductible for each proposed region;

4. for each region where the proposed regional deductible differs from the existing deductible, the insurer shall indicate in the business plan the methods by which it intends to write new business;

5. for each region where the proposed regional deductible is the same as the existing deductible, the insurer shall make a statement to that effect;

6. for the most recent quarter available, the number of policies in force and premium in force (at current rate level) in each proposed region, categorized by the current deductible on the policy;

7. for the most recent quarter available and categorized by the current deductible on the policy, the number of policies in force in each proposed region expected to be rolled to the proposed mandated minimum regional deductible;

8. for the most recent quarter available and categorized by the current deductible on the policy, the premium in force (at current rate level) adjusted to reflect the proposed mandated minimum regional deductible;

9. for the most recent quarter available and categorized by the current deductible on the policy, the difference between the current and the expected premium, represented in both premium dollars and percentage change from the policy premiums before policies are rolled to the proposed mandated minimum regional deductibles; and

10. for each proposed mandated minimum regional deductible, the premium credit associated with selected regional deductible.

B. Any approved unauthorized insurer (i.e. surplus lines) seeking authorization to deviate from the requirements of R.S.22:1333(C) and 22:1265(D)concerning deductibles for named storms and hurricanes shall file with the Commissioner a business plan setting forth the insurer's plan to write new business in the state of Louisiana. The business plan shall include, but not be limited to the following:

1. a written description of each proposed region for which mandated, minimum regional deductibles will vary;

2. a statewide graphic representation of each proposed region for which mandated, minimum regional deductibles will vary;

3. the proposed mandated minimum regional deductible for each proposed region;

4. for each region where the proposed regional deductible differs from the existing deductible, the insurer shall indicate in the business plan the methods by which it intends to write new business;

5. for each region where the proposed regional deductible is the same as the existing deductible, the insurer shall make a statement to that effect;

6. for the most recent quarter available and categorized by the current deductible on the policy, the number of policies in force in each proposed region expected to be rolled to the proposed mandated minimum regional deductible.

C. The business plan submitted by an insurer may include documentation or information setting forth why writing new business in a particular region may not be in the best interest of the insurer's policyholders. Factors to be considered in determining whether writing new business is not in the best interest of the insurer's policyholders may include but not be limited to the following:

1. the insurer's total market share based on the insurer's total written premium in the particular region or area;

2. the insurer's total market share based on the insurer's total written premium in the state;

3. the insurer's probable maximum loss (PML) based on the amount of risk the insurer has written in the state;

4. the insurer's total homeowners insurance policies in force in the particular region or area;

5. the insurer's total homeowners insurance policies in force in the state;

6. whether the rate filing and deductible are needed to ensure the insurer's ability to meet its ongoing obligations to its policyholders;

7. whether the rate filing and deductible are needed to ensure the insurer has adequate loss reserves;

8. whether the rate filing and deductible are needed to ensure the insurer's ability to remain competitive in the market;

9. whether the rate filing and deductible are needed to ensure the insurer's ability to adequately manage its business and the risk it has assumed; and

10. any other factors that the Commissioner determines are applicable, relevant, and appropriate.

D. Any business plan, documentation or information filed pursuant to subsections A, B, or C of this Section shall be considered proprietary or trade secret pursuant to the provisions of R.S. 44:3.2 and the Uniform Trade Secrets Act.

La. Admin. Code tit. 37, § XIII-13509

Promulgated by the Department of Insurance, Office of the Commissioner, LR 35:675 (April 2009).

AUTHORITY NOTE: Promulgated in accordance with R.S. 22:11 to enforce the provisions of R.S. 22:1333(D) and 22:1265(F).