Study group pushes for transparency, schedules data requests and ULM analysis

Members of the Louisiana Premium Tax Study Group emphasized consumer-facing transparency and administrative simplification for insurers as next steps in the review process. Representative Chance Henry said he had discussed with the insurance commissioner the possibility of adding premium-tax amounts to the policy declaration page and that the commissioner had agreed to pursue rulemaking on the point.

Representative Adam Patrick and others pressed for comparative analyses. Patrick asked whether Louisiana’s structure — with municipal premium taxes, a generous investment tax credit and retaliatory-credit mechanics — is common nationwide. Department of Insurance staff said retaliatory taxes exist in other states but that Louisiana’s effective reliance on investment credits and the overall scale make it an outlier. The department offered to produce national comparisons limited to specific states if requested.

The group voted to request a study from the University of Louisiana at Monroe on retaliatory-tax impacts and to gather insurer-provided effective tax-rate data for comparative purposes. Representative Richard Nelson and staff said company-level credit information is confidential under state law but that aggregated and historical data can be shared. Panelists also discussed whether defining “domestic” insurer status by workforce and operations would be part of any reform; members noted that such definitions could protect long-standing domestic carriers while limiting circumvention through nominally domestic subsidiaries.

Study-group staff said they will circulate the recorded meeting, assemble the requested figures and schedule the ULM presentation. Members set an objective to complete the study phase within months so draft legislation can be prepared for the 2027 session.