The Louisiana Department of Insurance issued a bulletin Monday notifying vehicle and home insurance companies that, pursuant to a new law, the insurers must disclose all available discounts to current and prospective policyholders. 

Effective May 1, La R.S. 22:881.1 requires every insurer to notify policyholders about the discounts in writing that is not less than 12-point font. The information must be distributed electronically or in written materials at each subsequent renewal. 

A discount is defined as premium credits advertised by an insurer to policyholders who meet certain criteria determined by the insurer. 

The law was created by the passage of HB375 during the 2024 legislative session. It was introduced by Rep. Mandie Landry (D-91) in February 2024. It passed both the House and Senate unanimously.  

The governor signed it into law on June 11. 

Department of Insurance Commissioner Tim Temple announced an auto insurance reform plan for the 2025 legislative session last month. This includes a list of 20 bills, mostly focused on legal reform, that the commissioner said he supports. 

“We’re in an insurance crisis in Louisiana,” Temple said during an April press conference. “That is a fact. I don’t need any polls to tell me that insurance is the issue for every man, woman, and child; every family and every business in the state of Louisiana.” 

Temple said insurers have an annual loss of nearly 8% in the state, which is three times the national average. 

“These aren’t feel-good bills or Band-Aid bills,” Temple said. “With this reform package, we are going to fix the cost drivers in our legal system, like medical billing transparency, comparative default, and general damages. These are measures that we know will move the needle and start lowering costs for families and businesses.”

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Image of Louisiana Department of Insurance (DOI) Commissioner Tim Temple courtesy of the DOI.