Louisiana adopts temporary non-cancellation law in wake of Francine
Insurers can issue a notice of cancellation for non-payment during this time, but can only cancel the policy after the expiration of the emergency rule.
The Louisiana Department of Insurance has enacted Emergency Rule 49, which is effective from September 9 to November 11, 2024, after the state was impacted by Hurricane Francine. The rule may be terminated earlier than the November cutoff by the insurance commissioner.
Louisiana Governor Jeff Landry declared a state of emergency on September 9, 2024, in anticipation of Hurricane Francine. That declaration gives the Department the power to adopt emergency provisions, per Louisiana State Legislature RS 22:11.
The emergency provisions aim to protect policyholders and promote public health and safety after the heavy rainfall and devastation caused by Hurricane Francine. Any notice of cancellation or nonrenewal for a policy that was in effect on September 9, 2024, is null and void. The notices can be reissued after the expiration of Emergency Rule 49.
Insurers can issue a notice of cancellation for non-payment of premium during that time, but can only cancel the policy for non-payment after the expiration of Emergency Rule 49. The order allows for a grace period to pay the premium but should not be misconstrued as a waiver of the premium. Insurers can offset any premium owed against a claim payment made to an insured.
A policy cannot be cancelled or nonrenewed solely because a claim was filed that is related to Hurricane Francine. A policy may be canceled while Emergency Rule 49 is in effect through a written request by an insured.
The renewal conditions of a policy are also suspended until after the expiration of Emergency Rule 49. All policies subject to renewal while Emergency Rule 49 is in effect will continue in full force at the previously established premium.
The order applies to all insurers described in R.S. 22:48, which include all P&C insurers, life insurers, annuity insurers, HMOs, MCOs, PPOs, and PBMs. It applies to insureds who reside in or have insured property in 25 listed parishes. A parish in Louisiana is similar to what other states may call a county.
The 25 parishes are Ascension, Assumption, Cameron, East Baton Rouge, Iberia, Iberville, Jefferson, Lafayette, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles, St. James, St. John the Baptist, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Vermilion, Washington, and West Baton Rouge.
Emergency Rule 49 can be found here.