A property insurance reform bill waiting for the governor’s signature would end the three-year rule. Louisiana is the only state that prohibits an insurer from canceling three years old or older policies.

House Insurance Commissioner Gabe Firment says the legislation allows insurance companies to manage their risks better.

“They can’t manage their risk, they can’t manage their policies, the only way to account for those risky homes is to increase the premiums on everyone else,” Firment said.

However, New Orleans Representative Matthew Willard is concerned that removing this consumer protection policy will result in more homeowners relying on Citizens Insurance, which is 10 percent more expensive than the private market.

“My understanding is those companies are only going to rid of the riskiest policies, so why would another company come in, immediately after that and pick up the riskiest policies,” Willard said.

Insurance Commissioner Tim Temple says reducing regulations on insurance providers will result in more companies writing homeowners’ policies.

But Ben Riggs, executive director of Real Reform Louisiana, says repealing the three-year rule will not spur on more competition among private insurance carriers.

“These people are going to Citizens policies. If you are going to the insurer of last resort, I would argue you’ve made insurance less available,” Riggs said.

Temple says ending the three-year rule is just one of several reform measures that will help bring more insurance companies to Louisiana.

“It is my prediction, based upon conversations, that we pass this package of bills and carriers will come back to Louisiana,” Temple said.