§1345. Residential flood coverage; rates

            For an insurer writing residential flood coverage, either of the following shall apply:

            (1) An insurer may establish and use residential flood coverage rates in accordance with the provisions of R.S. 22:1451 and 1454.

            (2) For residential flood coverage rates filed with the commissioner before January 1, 2027, all of the following shall apply:

            (a) An insurer shall establish and use rates in accordance with the rates, rating schedules, or rating manuals filed by the insurer with the commissioner which allow the insurer a reasonable rate of return on residential flood coverage written in this state.

            (b) Rates established pursuant to this Paragraph are not subject to R.S. 22:1451.

            (c) Within thirty days after the effective date of the change, the insurer shall notify the commissioner of any change to previously established rates and of the average statewide percentage change in rates.

            (d) Actuarial data with regard to rates for residential flood coverage shall be maintained by the insurer for two years after the effective date of the rate change and is subject to examination by the commissioner. The commissioner may require the insurer to incur the costs associated with an examination. Upon examination, the commissioner, in accordance with generally accepted and reasonable actuarial techniques, shall consider the rate factors and standards in R.S. 22:1454 to determine if the rate is excessive, inadequate, or unfairly discriminatory.

            (e) If the commissioner determines that a rate is excessive or unfairly discriminatory, the commissioner shall require the insurer to provide appropriate credit to any affected policyholders and an appropriate refund to any affected former policyholders.

            Acts 2021, No. 77, §1, eff. Jan. 1, 2022.