A new Louisiana law signed by Gov. Jeff Landry introduces penalties for auto insurers that increase premiums solely because a policyholder turns 65.
The measure, enacted as State Act No. 168 (formerly House Bill 258), reinforces the state’s prior ban on such rate adjustments and grants the insurance commissioner authority to impose penalties at their discretion.
John Ford, deputy commissioner of the public affairs division at the Louisiana Department of Insurance, stated in an email that the law affirms the commissioner’s power to address insurers that raise rates based solely on a policyholder reaching age 65.
It also allows the department to respond based on the seriousness of each violation.
HB 258 reinforces that the commissioner has the authority to hold insurers accountable for raising a policyholder’s premium solely for turning 65 and ensures the department can take an appropriate level of action based on the severity of the insurer’s offense
John Ford, deputy commissioner, public affairs division, at the Louisiana Department of Insurance
Initially, the legislation proposed a $10,000 fine per violation. However, the Louisiana House Committee on Insurance removed the fixed amount and assigned penalty-setting authority to the commissioner instead.
Industry groups opposed the bill, arguing that existing laws already prohibit age-based premium increases and that insurers are subject to enforcement for market conduct violations.
The penalties outlined in the law take effect on Aug. 1.
Efforts to obtain a statement from the bill’s sponsor, Rep. Sylvia Taylor (D-District 57), were unsuccessful.
This legislation follows other insurance-related reforms signed by Gov. Landry, including changes to tort law and provisions expanding the insurance commissioner’s ability to adjust rate filings.
