HB 401 Louisiana House · 2025 Regular Session

INSURANCE DEPARTMENT: Provides relative to certain assessed fees on direct premiums of insurers

HB 401 creates a dedicated "Insurance Fraud Investigation Dedicated Fund Account" by redirecting fees paid by insurers into this special fund. Insurers licensed to operate in Louisiana will pay these fees, with unspent funds at year-end refunded proportionally to each insurer based on their share of total fees collected. The bill repeals a previous fee reduction and specifies that funds in the account must be used exclusively for fraud investigation units, as authorized by the legislature. This bill directly affects all insurers conducting business in Louisiana by changing how their fees are collected and managed.

Bill status signed all 5 stages cleared

Introduction

Apr 2025

Committee Review

May 2025

House Passage

May 2025

Senate Passage

May 2025

Signed into Law

Jun 2025

Introduced Apr 3, 2025 Signed Jun 4, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

HB401 Original → HB401 Act 83 · 4 edits

MODERATE

The bill was finalized as Act 83, adding numerous sponsors to the original list. The substantive policy change involves keeping unspent insurance fraud investigation funds in the state account rather than refunding them to insurers at the end of each fiscal year, ensuring a stable funding source for fraud units. The bill also repeals a previous requirement to reduce fee assessments based on prior year costs.

Scope change

The bill's scope expanded to include additional representatives as sponsors, while the core applicability to licensed insurers and the insurance department remains the same.

ELIGIBILITY

Added Representatives Bamburg, Berault, Billings, Boyer, Carlson, Carver, Chenevert, Cox, Domangue, Edmonston, Egan, Fisher, Galle, Glorioso, Mack, McMakin, Melerine, Schamerhorn, Spell, Wilder, Wiley, and Wyble to the list of bill sponsors.

FISCAL

Changed the disposition of unspent funds so that unexpended and unencumbered monies in the fraud investigation account remain in the account instead of being refunded to insurers at the end of the fiscal year.

REQUIREMENT

Removed the requirement to reduce the insurance fee assessment by the amount exceeding 5% of the previous year's cumulative fraud program costs.

TECHNICAL

Updated document headers from 'Original' to 'Enrolled' and changed page counts from 3 to 2 to reflect the final enacted version.

Floor votes · Senate May 28, 2025 · House May 7, 2025

How they voted

36–0

Passed · 1 other

Total votes 37

May 28, 2025

D Democratic11

11 Yea

100% Yea

R Republican26

25 Yea 1

96% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 28, 2025

Upper · Passed

Read by title, passed by a vote of 38 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

upper

May 19, 2025

Committee

Read by title and referred to the Legislative Bureau.

upper

May 14, 2025

Upper · Passed

Reported favorably.

upper

May 7, 2025

Lower · Passed

Read third time by title, roll called on final passage, yeas 99, nays 0. Finally passed, title adopted, ordered to the Senate.

lower

Apr 29, 2025

Lower · Passed

Reported favorably (13-0).

lower

Apr 14, 2025

Committee

Read by title, under the rules, referred to the Committee on Insurance.

lower

Apr 3, 2025

Committee

Under the rules, provisionally referred to the Committee on Insurance.

lower

1 primary · 22 co-sponsors