Louisiana House kills bill regulating auto insurance rate-setting process

 A bill that would have banned auto insurance companies from using several factors other than driving ability to set rates was voted down by the Louisiana House.

According to The Center Square, under HB467, companies would have been barred from using a driver’s credit information, education level, home ownership, employment, trade, business, occupation or profession. A similar bill focused on barring consideration of gender, credit score and the driver’s status as a widow or widower was killed in a Senate committee.

The bill’s Republican critics argued that the companies should be able to use any factors they want to set rates without government interference.

“Those factors aren’t arbitrary,” said Rep. Alan Seabaugh, R-Shreveport. “Let the market set the rates.”  

Rep. Edmond Jordan, D-Baton Rouge, who authored the bill, however, pointed out that auto insurance is not sold in a free market because the government requires drivers to buy it.  Read the full story.