About Louisiana Insurance Laws, Health Insurance and Regulations…Louisiana is home to a robust insurance industry, which has survived several years of powerful natural disasters. The industry, as well as its various sectors, is regulated by the Louisiana Insurance Department. This agency is responsible for ensuring that insurance companies do not operate with impunity. The agency establishes regulations, reviews rate proposals coming from insurance companies, and upholds federal laws and standards that govern the overarching insurance industry of the country.
As in other states, auto insurance is required of all drivers in Louisiana. The Louisiana Insurance Department regulates the auto insurance industry, ensuring consumers are treated fairly and given access to reasonable policies. The state’s regulations also prevent consumers from taking advantage of the auto insurance market through fraud or other malicious activity. The Louisiana Insurance Department has determined that drivers may carry a minimum level of coverage, which must account for: $15,000 per person for bodily injury or death; $30,000 per accident for bodily injury or death; and $25,000 for property damage. The state does not require drivers to carry personal injury protection (PIP) coverage.
Louisiana is among one of the most expensive states in terms of auto insurance coverage. Drivers in the state pay an average of $2,039 for their policies.
Because of Louisiana’s proximity to the Gulf of Mexico, the state is under high risk of falling prey to hurricanes and tropical storms. These natural disasters typically cause widespread floods throughout the state. The frequency and severity of these natural disasters have left the state’s property insurance industry somewhat sparse. Many property insurance companies do not offer coverage for this market. Those that do typically charge a significant amount of money for their insurance policies. The Louisiana Insurance Department can only do so much to ensure that the prices associated with homeowners insurance are considered fair. Despite the often high costs of coverage, homeowners are strongly encouraged to purchase insurance protection, especially if their homes are located near coastal areas.
Louisiana hosts a population of more than 4.2 million. Approximately 20% of this population does not have any health insurance coverage. In 2014, American citizens will be required to purchase health insurance policies, with states being required to build insurance exchanges to provide these consumers with access to affordable policies.
Louisiana has recently determined that it will not build a health insurance exchange itself. Governor Jindal suggests that an exchange would be a massive tax burden on the state’s residents. Louisiana Insurance Commissioner Jim Donelon, on the other hand, suggests that an exchange built by the federal government may not account for the needs of the state.
Louisiana Insurance Resources:
Louisiana Insurance Commissioner: James Donelon
Louisiana Department of Insurance Website: http://www.ldi.state.la.us/index.html
Louisiana Insurance Licensing: http://www.ldi.state.la.us/Licensing/Producer/ApplicationInformation.html
File Insurance Complaint: https://www.ldi.state.la.us/ConsumerComplaintForm/Complaints/Welcome.aspx