§ 22:1483 — Premium discounts, credits, rate differentials, adjustments in deductibles, and other

§1483. Premium discounts, credits, rate differentials, adjustments in deductibles, and other
adjustments for compliance with building codes and for damage mitigation
A. Any insurer required to submit rates and rating plans to the commissioner shall
provide an actuarially justified discount, credit, rate differential, adjustment in deductible,
or any other adjustment to reduce the insurance premium to insureds who build or retrofit a
structure to comply with the requirements of the State Uniform Construction Code or the
fortified home or fortified commercial standards created by the Insurance Institute for
Business and Home Safety.
B. Any insurer required to submit rates and rating plans to the commissioner shall
provide an actuarially justified discount, credit, rate differential, adjustment in deductible,
or any other adjustment to reduce the insurance premium to insureds who install mitigation
improvements or retrofit their property utilizing construction techniques demonstrated to
reduce the amount of loss from a windstorm or hurricane. The mitigation improvements or
construction techniques shall include but not be limited to roof deck attachments; secondary
water barriers; roof coverings; brace gable ends; construction techniques which enhance or
reinforce roof strength; roof-covering performance; roof-to-wall strength,
wall-to-floor-to-foundation strength; opening protection; and window, door, and skylight
strength.
C.(1) All insurers required to submit rating plans to the commissioner shall provide
an actuarially justified discount, credit, rate differential, adjustment in deductible, or any
other adjustment to reduce the insurance premium charged to any insured who builds or
retrofits a structure to comply with the requirements of the fortified home and fortified
commercial standards created by the Insurance Institute for Business and Home Safety.
(2) To obtain a credit or discount provided in this Subsection, an insurable property
located in this state shall be certified as constructed in accordance with the fortified home
or fortified commercial standards provided by the Insurance Institute for Business and Home
Safety.
(3) An insurable property shall be certified as in conformance with the fortified home
or fortified commercial standards only after inspection and certification by an Insurance
Institute for Business and Home Safety certified inspector.
(4) An owner of insurable property claiming a credit or discount shall maintain and
provide certification records and construction records, including certification of compliance
with the Insurance Institute for Business and Home Safety standards, for which the owner
seeks a discount. Such documents may include but are not limited to receipts for contractors,
receipts for materials, and records from local building officials.
(5) An owner of insurable property claiming a credit or discount shall maintain the
Insurance Institute for Business and Home Safety certification documents, which shall be
considered evidence of compliance with the fortified home or fortified commercial standards.
The certification shall be presented to the insurer or potential insurer of a property owner
before the adjustment becomes effective for the insurable property along with any other
necessary records.
(6) The credit or discount shall apply only to policies that provide wind coverage and
may apply to the portion of the premium for wind coverage or to the total premium, if the
insurer does not separate out the premium for wind coverage in the rate filing. The
adjustment shall apply exclusively to the premium designated for the improved insurable
property. The adjustment is not required to be in addition to other mitigation adjustments
provided by the insurer and shall be in lieu of those other adjustments, including those in
place prior to January 1, 2022, if they are deemed to be duplicated.
(7) The records required by this Subsection shall be subject to audit by the
commissioner.
(8) Nothing in this Section shall prohibit insurers from offering additional
adjustments in deductible, other credit rate differentials, or a combination thereof. These
adjustments shall be available under the terms specified in this Section to any owner who
builds or locates a new insurable property in this state to resist loss due to hurricane, tornado,
or other catastrophic windstorm events.
(9) For the purposes of this Subsection, insurable property includes residential
property, commercial property, modular homes, and manufactured homes that may be
retrofitted.
D. The commissioner of insurance, in consultation with the State Uniform
Construction Code Council, shall promulgate rules and regulations in accordance with the
Administrative Procedure Act to implement the provisions of this Section. The rules and
regulations may include but not be limited to the following:
(1) Provisions defining and delineating the criteria for discounts, credits, rate
differentials, adjustments in deductibles, or any other adjustments to reduce the insurance
premium and how such discounts, credits, rate differentials, adjustments in deductibles, or
any other adjustments are computed in determining their application in each premium
quoted.
(2) Those items necessary for an insurer to compute or otherwise determine the
actuarially justified amount of any premium rate reduction, discount, credit, rate differential,
reduction in deductible, or other adjustment available to an insured.
(3) Provisions establishing the inspection and certification requirements for insureds
who comply with the provisions of this Section.
(4) Recordkeeping requirements for insurers.
NOTE: Former R.S. 22:1483 redesignated as R.S. 22:1503 by Acts 2008,
No. 415, §1, eff. Jan. 1, 2009.

Legislative History

Acts 2007, No. 323, §1, eff. July 9, 2007; Redesignated from R.S. 22:1426 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2021, No. 30, §1; Acts 2023, No. 1, §1; Acts 2023, No. 45, §1, eff. June 1, 2023.