Louisiana Department of Insurance (LDI)

The Louisiana Department of Insurance (LDI) is the state agency responsible for regulating the Property & Casualty insurance industry in Louisiana. The Department operates under Title 22 of the Louisiana Revised Statutes and protects consumers while fostering a competitive insurance marketplace.

The Insurance Commissioner

The Louisiana Insurance Commissioner is:

• Elected by Louisiana voters (unlike many states where the Commissioner is appointed)
• Serves a four-year term with term limits
• Chief regulator of Louisiana's insurance industry
• Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
• Supported by the Louisiana Department of Insurance staff

Current Structure (2026)

Louisiana's elected Insurance Commissioner approach makes Louisiana unique among states. The Commissioner answers directly to Louisiana voters, emphasizing consumer protection and accountability to the public.

Commissioner Powers for P&C Insurance

Exam Tip: The Louisiana Insurance Commissioner is ELECTED by Louisiana voters, not appointed by the Governor. This is a key difference from many other states and appears frequently on exams.

Rate Regulation

Louisiana recently reformed its rate regulation system to improve market stability and insurer participation:

Key Provisions

• File-and-Use System: Insurers file rates with LDI and may use them after a brief review period
• LDI Review: Commissioner reviews filed rates for compliance with standards
• Rate Standards: Rates must not be excessive, inadequate, or unfairly discriminatory
• Public Access: Rate filings are public records
• Actuarial Justification: Rates must be supported by actuarial data

File-and-Use Process

1. Insurer Files Rates: Submit rate filing with actuarial justification to LDI
2. LDI Review Period: Department reviews filing (typically 30-45 days)
3. Implementation: Rates become effective after review period unless disapproved
4. Approval or Disapproval: Commissioner approves or orders rates modified
5. Insurer Response: If disapproved, insurer may modify, contest, or withdraw

Exam Tip: Louisiana recently transitioned from prior approval to file-and-use for most lines of insurance. Know that insurers must file rates with actuarial support, and the Commissioner reviews them before they become effective.

Rate Regulation by Line

Louisiana Insurance Law

Title 22 of the Louisiana Revised Statutes

Louisiana insurance regulation is codified in Title 22 of the Louisiana Revised Statutes (La. R.S. 22), which covers:

1. Insurer Licensing and Solvency

   • Requirements for insurers to operate in Louisiana
   • Financial standards and reserve requirements
   • Annual financial examinations and reporting
   • Rehabilitation and liquidation procedures

2. Producer Licensing

   • Producer license requirements and procedures (La. R.S. 22:1546-1574)
   • Continuing education mandates
   • Prohibited practices and penalties
   • Agency relationships and authority

3. Policy Requirements

   • Mandatory policy provisions for property and casualty insurance
   • Required disclosures to policyholders
   • Consumer protections and rights
   • Cancellation and non-renewal requirements

4. Rate Regulation

   • Rate filing requirements and procedures
   • Prohibitions on unfair discrimination
   • Rate review standards and processes
   • Public access to rate information

5. Consumer Protections

   • Cancellation and non-renewal restrictions
   • Claims handling requirements
   • Unfair trade practices prohibitions
   • Louisiana-specific consumer rights

Key Louisiana Statutes

Exam Tip: You don't need to memorize specific statute numbers, but understand that Title 22 of Louisiana Revised Statutes governs all insurance activity in Louisiana. Know the general topics covered.

LDI Organization

The Louisiana Department of Insurance operates through several functional divisions:

Key Divisions

Consumer Protection Functions

Consumer Services Division

The LDI provides robust consumer protection through:

• Consumer Hotline: (800) 259-5300 toll-free or (225) 219-4565 local
• Website: www.ldi.la.gov with online complaint filing
• Consumer Services: Investigates complaints against insurers and producers
• Educational Resources: Consumer guides, hurricane preparation materials, and online information
• Complaint Resolution: Mediates disputes between consumers and insurers
• Fraud Investigation: Works with law enforcement on insurance fraud cases
• Hurricane Assistance: Special support during and after hurricanes

Complaint Process

1. Consumer Files Complaint: Online at www.ldi.la.gov, phone (800) 259-5300, or mail
2. LDI Review: Department reviews complaint and determines jurisdiction
3. Insurer/Producer Contact: LDI contacts party for response (typically 15 days)
4. Investigation: LDI investigates if warranted
5. Resolution: LDI works to resolve dispute or takes enforcement action
6. Follow-up: LDI tracks outcomes and consumer satisfaction

Common Consumer Complaints in Louisiana

Exam Tip: The LDI Consumer Hotline is (800) 259-5300. Know that Louisiana consumers can file complaints about insurers and producers online, by phone, or by mail. The LDI provides special hurricane recovery assistance.

Regulatory Authority

Examination Authority

The Louisiana Insurance Commissioner has authority to:

1. Conduct Financial Examinations

   • Examine insurer financial records and operations
   • Verify compliance with solvency requirements
   • Review reserve adequacy (critical after major hurricanes)
   • Assess reinsurance arrangements

2. Perform Market Conduct Examinations

   • Review business practices and procedures
   • Examine claims handling processes (especially post-hurricane)
   • Verify rating and underwriting compliance
   • Check producer licensing and appointments
   • Investigate consumer complaints

3. Investigate Complaints

   • Review consumer and producer complaints
   • Investigate potential violations of Louisiana law
   • Gather evidence and testimony
   • Coordinate with other state and federal agencies

Enforcement Powers

The Commissioner may:

• Issue cease and desist orders
• Impose civil penalties (fines up to $10,000 per violation for most violations)
• Suspend or revoke producer and company licenses
• Order restitution to consumers
• Refer criminal matters to District Attorneys
• Place insurers under supervision, rehabilitation, or liquidation
• Take emergency action during disasters

Administrative Hearings

Parties subject to LDI enforcement action have rights to:

• Written notice of charges and proposed action
• Hearing before administrative law judge
• Legal representation at hearing
• Present evidence and witnesses
• Cross-examine witnesses
• Appeal to Louisiana courts
• Stay of penalty during appeal (in some cases)

Insurance Fraud Prevention

Louisiana Insurance Fraud Unit

Louisiana takes insurance fraud seriously, especially after hurricanes:

Fraud Unit Functions:

• Investigate suspected insurance fraud (application fraud, claims fraud)
• Work with law enforcement agencies and District Attorneys
• Prosecute fraudulent activities under Louisiana law
• Educate public about fraud prevention
• Target hurricane-related fraud schemes

Common Fraud Types in Louisiana:

• Hurricane Claims Fraud: Inflating damages, claiming pre-existing damage, false claims
• Application Fraud: Misrepresenting property condition, location, or risk factors
• Premium Fraud: Agents misappropriating premiums
• Contractor Fraud: Unlicensed contractors submitting false estimates
• Agent Fraud: Unlicensed activity, misrepresentation, twisting

Reporting Fraud

• Fraud Hotline: (800) 259-5300 (same as consumer hotline)
• Online: Report fraud at www.ldi.la.gov
• Email: fraud@ldi.la.gov
• Confidential: Reports may be anonymous
• Penalties: Insurance fraud is a felony in Louisiana, punishable by imprisonment and fines

Exam Tip: Insurance fraud is a serious crime in Louisiana, especially hurricane-related fraud. Producers must report suspected fraud and cannot participate in fraudulent activities. Penalties can include prison time and substantial fines.

Louisiana Citizens Property Insurance Corporation

Overview

Louisiana Citizens is Louisiana's insurer of last resort, providing property insurance to those unable to obtain coverage in the voluntary market.

Key Facts About Louisiana Citizens

Recent Developments (2026)

• 10% Surcharge Waiver: Starting January 1, 2026, Louisiana Citizens policyholders see temporary waiver of 10% surcharge for three years
• Hurricane Assessment End: The 1.36% assessment on all property policies (to repay Katrina/Rita bonds) ended in April 2025, ahead of schedule
• Depopulation Efforts: Louisiana Citizens works to move policies to voluntary market insurers
• Market Reforms: Legislative reforms aim to increase voluntary market capacity

Exam Tip: Louisiana Citizens is the state's insurer of last resort. Know that it's a nonprofit corporation, must be more expensive than voluntary market, and recently eliminated the 1.36% hurricane assessment and waived the 10% surcharge.