August 19, 2016
In response to recent catastrophic flooding, the Louisiana Department of Insurance issued Emergency Rule 27 on August 18th, which suspends certain provisions of the Louisiana Insurance Code, including those related to cancellation, non-renewal, premium payment and claim filings. Rule 27 is applicable to all types of insurance written by entities authorized to do business or regulated by the Louisiana Insurance Commissioner, excluding flood insurance issued pursuant to the National Flood Insurance Program (NFIP). The Rule is applicable to insureds located in the counties listed in the Rule and is retroactively effective from August 12th until September 10th. As stated in the Rule, the measure is needed to aid those citizens of Louisiana, whose lives have been disrupted by displacement from homes, closing of businesses, temporary loss of employment and interruption in mail and communication services.
In reviewing the rule, PFI wants to call your attention to Section 4917 of the Rule, which provides that the Rule makes ineffective and void any notice of cancellation, notice of non-renewal, non-reinstatement or any other notice related to insurance that was in effect as of August 12, 2016. All such notices must be reissued after the moratorium is lifted on September 10, 2016.