Louisiana § RS 22:1465 - Disapproval of filings; rates; procedures

§ RS 22:1465. Disapproval of filings; rates; procedures

            A.(1) The commissioner shall disapprove a rate if he determines that the rate is excessive, inadequate, or unfairly discriminatory.

            (2) If within the notification period as provided in R.S. 22:1451, the commissioner finds that a rate filing does not meet the requirements of this Subpart, the commissioner shall send to the insurer or rating organization which made such filings written notice of disapproval of the rate filing, specify the reasons why the rate filing is not in compliance with the requirements of this Subpart, and state that the rate filing shall become ineffective as of the date that the written notice is sent, at which time the insurer's or rating organization's most recently approved rate filing shall resume effectiveness.

            (3)(a) If at any time after a filing has become effective under R.S. 22:1451, the commissioner finds that a filing does not meet the requirements of this Subpart, he shall request a public hearing to be held upon not less than ten days' written notice, specifying the matters to be considered at such hearing to every insurer and rating organization which made such filing, and the commissioner shall thereafter issue an order specifying in what respects, if any, the commissioner finds that such filing fails to meet the requirements of this Subpart, and stating when, within a reasonable period thereafter, such filing shall be deemed no longer effective.

            (b) If an insurer appeals the disapproval of a rate filing pursuant to R.S. 22:1469, the insurer may continue to use the disapproved rate pending a final ruling on such appeal. All funds collected by the insurer subsequent to the commissioner's rate disapproval but pending the final disposition of the appeal which are in excess of the previously approved rate shall be segregated and maintained by the insurer in an escrow account which shall be pledged to the commissioner for the benefit of the insureds.

            (4) If a rate filing is determined to be excessive, inadequate, or unfairly discriminatory pursuant to the provisions of this Subpart, the commissioner may direct the insurer to collect additional premiums to ensure that the rate is adequate or require a refund of any sums deemed to be discriminatory or excessive.

            B.(1) Any insurer whose rate filing is returned as incomplete more than once or is disapproved shall be provided a public hearing upon written request made within thirty days of the return of the rate filing, disapproval of the rate filing, or inaction of the commissioner.

            (2) If the commissioner, after conducting a public hearing, disapproves a new rate or rate change, he shall issue his order within thirty days of such hearing and shall specify the reasons why the new rate or rate change does not comply with the requirements of this Subpart. The commissioner's order shall state a date, not later than thirty days after the date of the order, on which the new rate or rate change shall be discontinued. Copies of said order shall be sent to every such insurer and rating organization. Said order shall not affect any contract or policy made or issued prior to the expiration of the period set forth in said order.

            C. Any person or organization aggrieved with respect to any filing which is in effect may demand a hearing in accordance with Chapter 12 of this Title, R.S. 22:2191 et seq.; however, the insurer or rating organization that made the filing shall not be authorized to proceed under this Subsection.

            D. Nothing in this Section shall be interpreted to create a private cause of action.

            Acts 1958, No. 125; Acts 1960, No. 296, §1; Acts 1966, No. 136, §1; Acts 2003, No. 456, §1; Acts 2007, No. 459, §1, eff. Jan. 1, 2008; Redesignated from R.S. 22:1408 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 317, §1; Acts 2024, No. 10, §1, eff. May 7, 2024; Acts 2025, No. 11, §1.

NOTE: Former R.S. 22:1465 redesignated as R.S. 22:1294 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.