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ACT No. 375
Regular Session, 2010
HOUSE BILL NO. 463
BY REPRESENTATIVE KLECKLEY
AN ACT1
To amend and reenact R.S. 22:851(A), 852(B), 853(B), 854(A), 855(A)(1), (B)(1) and (2)(a)2
and (b), (C), (D)(2), (G), and (H), 856(introductory paragraph), 857, 860(A) and3
(B)(introductory paragraph), 861(B) and (F), 862(2) and (5), 863(A), 864(B)(4), (5),4
and (8), and (C), 865(introductory paragraph) and (1), 866, 867, 868(A)(introductory5
paragraph) and (1) and (B), 871, 875 through 878, 879(introductory paragraph) and6
(2) and (3), 880, 882(1) through (5), 883(C)(5)(c) and (d), 884, 885(A), (C), and (D),7
886, 887(A)(introductory paragraph) and (1)(b) and (2), (B), (D)(1), (E), (G)(2), and8
(H), and 888(B)(1) and (2), (C), (D), and (E), relative to technical recodification of9
certain provisions of the Louisiana Insurance Code relative to general insurance10
policy requirements, including correction of citations, updates of terms and language,11
reorganization of provisions, elimination of obsolete or ineffective provisions, and12
harmonizing of inconsistent provisions; and to provide for related matters.13
Be it enacted by the Legislature of Louisiana:14
Section 1. R.S. 22:851(A), 852(B), 853(B), 854(A), 855(A)(1), (B)(1) and (2)(a) and15
(b), (C), (D)(2), (G), and (H), 856(introductory paragraph), 857, 860(A) and (B)(introductory16
paragraph), 861(B) and (F), 862(2) and (5), 863(A), 864(B)(4), (5), and (8), and (C),17
865(introductory paragraph) and (1), 866, 867, 868(A)(introductory paragraph) and (1) and18
(B), 871, 875 through 878, 879(introductory paragraph) and (2) and (3), 880, 882(1) through19
(5), 883(C)(5)(c) and (d), 884, 885(A), (C), and (D), 886, 887(A)(introductory paragraph)20
and (1)(b) and (2), (B), (D)(1), (E), (G)(2), and (H), and 888(B)(1) and (2), (C), (D), and (E)21
are hereby amended and reenacted to read as follows: 22
§851. Scope of Part23
A. The applicable provisions of this Part shall apply to insurance other than24
ocean marine and foreign trade insurances. This Part shall not apply to life insurance25 ENROLLEDHB NO. 463
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policies or annuities not issued for delivery in this state nor delivered in this state.1
This Part also shall not apply to any health and accident insurance policy not issued2
for delivery in this state nor delivered in this state, except for any group policy3
covering residents of Louisiana, regardless of from where it was issued or delivered.4
* * *5
§852. Power to contract 6
* * *7
B. A minor not less than fifteen years of age as at nearest birthday may,8
notwithstanding such minority, contract for life or health and accident insurance for9
his own benefit or for the benefit of his father, mother, spouse, child, brother, sister,10
or grandparent, or any person with an insurable interest and may exercise all rights11
and powers with respect to or under the contract as though of full legal age, and may12
surrender his interest therein and give a valid discharge for any benefit accruing or13
money payable thereunder. The minor shall not, by reason of his minority, be14
entitled to rescind, avoid, void, or repudiate the contract, or any exercise of a right15
or privilege thereunder; except, that such minor, not otherwise emancipated, shall not16
be bound by any unperformed agreement to pay, by promissory note or otherwise,17
any premium on any such insurance contract.18
§853. Insurable interest required; property insurances 19
* * *20
B. "Insurable interest" as used in this Section Chapter means any lawful and21
substantial economic interest in the safety or preservation of the subject of the22
insurance free from loss, destruction, or pecuniary damage.23
§854. Interest of the insured24
A. When the name of a person intended to be insured is specified in the25
policy, such insurance can be applied only to his own proper interest. This Section26
shall not apply to life, annuity, and or health and accident insurances. insurance.27
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§855. Quoted premium shall include all charges; dollar amount required1
A. The premium quoted by the insurer shall be a specific dollar amount2
which shall be inclusive of all fees, charges, premiums, or other consideration3
charged for the insurance or for the procurement thereof, except that:4
(1) In any subsequent modification of the policy, the insurer may require that5
evidence of insurability be furnished at the insured's expense ;.6
* * *7
B.(1) No insurer or its officer, employee, agent, broker, solicitor, producer8
or other representative shall charge or receive any fee, compensation, or9
consideration for insurance which is not included in the premium quoted to the10
insured and the premium specified in the policy delivered to the insured, except for11
the premium tax on a surplus lines policy which shall be separately stated, and12
except for reimbursement for expenses due the agent, producer, and except for an13
agency fee, if any, as authorized hereunder.14
(2)(a) The agent producer may receive reimbursement from the insured for15
expenses incurred by the agent producer directly related to the insurance coverage16
for the insured. In addition, the agent producer may charge a reasonable agency fee17
related to the services provided by the agent. producer. Any reimbursement or18
agency fee shall be itemized separately on an invoice statement. A single invoice19
may be used to make known all charges. Each such charge must be prominently20
disclosed and itemized separately on the invoice.21
(b) The reimbursement for expense and agency fees shall not be considered22
premium for any purpose, nor shall they be subject to premium taxes or surplus lines23
premium taxes. Agency fees for criminal bail bond, or homeowners insurance, or24
personal automobile insurance that are standard risks insurable at standard rates shall25
not exceed twenty-five dollars.26
* * *27
C. Each policy delivered to the insured shall have the full and accurate dollar28
amount of the premium disclosed on the policy, which shall be inclusive of all fees,29
charges, premiums, or other consideration charged for the insurance or for the30 ENROLLEDHB NO. 463
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procurement thereof, except that, in any subsequent modification of the policy, the1
insurer may require that evidence of insurability be furnished at the insured's2
expense, and except that the premium tax on a surplus lines policy shall be separately3
stated, and except for reimbursement of expenses and agency fees as authorized in4
Paragraph (B)(2). of this Section.5
D.6
* * *7
(2) In this Subsection, a person who procures the preparation of any8
document specified in Paragraph (1) of this Subsection includes a person who9
knowingly permits the preparation of such a document to be done or participated in10
by a subordinate or employee, whether or not that person directly ordered or caused11
the subordinate or employee to prepare the document. It shall not include a person12
furnishing typing, reproducing, or providing other clerical or mechanical assistance13
with respect to a document.14
* * *15
G. The commissioner may assess one or more of the following penalties16
against any person who violates the provisions of this Section:17
(1) A fine in an amount not greater than five thousand dollars,.18
(2) A suspension of an insurer's certificate of authority or an agent's,19
broker's, or solicitor's a producer's license, or.20
(3) A revocation of an insurer's certificate of authority or an agent's, broker's,21
or solicitor's a producer's license.22
H. The provisions of this Section shall apply to all policies except life ,23
accident, health, annuity, health and accident, and reinsurance policies.24
§856. Application for insurance required 25
No life, annuity, or health and accident insurance contract upon an individual,26
except a contract of group life insurance or of group or blanket health and accident27
insurance as defined in this Code, shall be made or effectuated unless at the time of28
the making of the contract the individual insured, being of competent legal capacity29 ENROLLEDHB NO. 463
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to contract, in writing applies therefor or consents thereto, except in the following1
cases: 2
* * *3
§857. Application as evidence; life, annuity, or health and accident insurance 4
A. No application for life, annuity, or health and accident insurance shall be5
admissible in evidence in any action relative to the policy or contract, unless a6
correct copy of the application was attached to or otherwise made a part of the7
policy, or contract, when issued and delivered. This provision shall not apply to8
policies or contracts of industrial insurance subject to R.S. 22:149(2) and 975(A)(1).9
B. If any policy of life , annuity, or health and accident insurance delivered10
in this state is reinstated or renewed, and the insured or the beneficiary or assignee11
of the policy makes written request to the insurer for a copy of the application, if any,12
for such reinstatement or renewal, the insurer shall, within fifteen days after receipt13
of such request at its home office or at any of its branch offices, deliver or mail to the14
person making such request, a copy of such application. If such copy is not so15
delivered or mailed, the insurer shall be precluded from introducing the application16
as evidence in any action or proceeding based upon or involving the reinstatement17
or renewal of the policy.18
* * *19
§860. Warranties and misrepresentations in negotiation; applications20
A. Except as provided in Subsection B of this Section, and R.S. 22:1314, and21
R.S. 22:1315, no oral or written misrepresentation or warranty made in the22
negotiation of an insurance contract, by the insured or in his behalf, shall be deemed23
material or defeat or void the contract or prevent it attaching, unless the24
misrepresentation or warranty is made with the intent to deceive.25 ENROLLEDHB NO. 463
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B. In any application for life, annuity, or health and accident insurance made1
in writing by the insured, all statements therein made by the insured shall, in the2
absence of fraud, be deemed representations and not warranties. The falsity of any3
such statement shall not bar the right to recovery under the contract unless either one4
of the following is true as to the applicant's statement:5
* * *6
§861. Approval of forms7
* * *8
B. Every such filing shall be made not less than forty-five days in advance9
of any such issuance, delivery, or use. At the expiration of forty-five days , the form10
so filed shall be deemed approved unless prior thereto it has been affirmatively11
approved or disapproved by order of the commissioner of insurance. The12
commissioner of insurance may extend by not more than an additional fifteen days13
the period within which he may so affirmatively approve or disapprove any such14
form, by giving notice of such extension before expiration of the initial thirty-day*15
forty-five-day period. At the expiration of any such period as so extended, and in the16
absence of such prior affirmative approval or disapproval, any such form shall be17
deemed approved. The commissioner of insurance may withdraw any such approval18
at any time for cause. Approval of any such form by the commissioner of insurance19
shall constitute a waiver of any unexpired portion of such initial fifteen-day waiting20
period.21
* * *22
F. Insurers negotiating with and insuring special commercial entities shall23
be exempt from the form filing and approval requirements of this Section. The24
commissioner shall adopt rules and regulations necessary for the implementation of25
this Subsection including a provision defining special commercial entities which26
qualify for exemption. The definition of exempt commercial policyholder shall be27
reviewed periodically by the commissioner. This Subsection shall apply only to28
commercial property and casualty insurance. The regulations required by this29
Subsection shall be adopted no later than April 1, 2000. issued by the commissioner.30 ENROLLEDHB NO. 463
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§862. Grounds for disapproval 1
The commissioner of insurance shall disapprove any such form of policy,2
application, rider, or endorsement, or withdraw any previous approval thereof, only:3
* * *4
(2) If it does not comply with any controlling filing theretofore previously5
made and approved.6
* * *7
(5) If purchase of insurance thereunder is being solicited by deceptive8
advertising.9
* * *10
§863. Standard provisions 11
A. Insurance contracts shall contain such standard provisions as are required12
by the applicable chapters of this Code pertaining to contracts of particular kinds of13
insurance. The commissioner of insurance may waive the required use of a14
particular standard provision other than the provisions required in Subpart C of Part15
IV of Chapter 4 of this Title this Chapter in a particular insurance contract form if:16
both of the following apply:17
(1) He The commissioner finds such provision unnecessary for the protection18
of the insured, and inconsistent with the purposes of the contract, and.19
(2) The contract is otherwise approved by him. the commissioner.20
* * *21
§864. Content of policies in general22
* * *23
B. A policy shall specify and conform to the following:24
* * *25
(4) The time at which the insurance thereunder takes effect and the period26
during which the insurance is to continue.27
(5) A statement of the premium, other than as to surety bonds, and if other28
than life, annuity, accident or health, or title insurance, the premium rate.29
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(8) Every printed portion of the text matter of the policy and of any1
endorsements or attached papers is printed in type the size of which shall be uniform2
and the face of which shall not be not less than ten-point type. The text matter shall3
include all printed matter except the name and address of the insurer, name or title4
of the policy, captions, sub-captions, and form numbers.5
* * *6
C. If under the contract the exact amount of premiums is determinable only7
at termination or at periodic intervals of the contract, a statement of the basis and8
rates upon which the final premium is to be determined and paid shall be furnished9
provided any policy examining bureau having jurisdiction or to the insured upon10
request.11
* * *12
§865. Additional contents 13
A policy may contain additional provisions, which are not inconsistent with14
this Code, and which are, either:15
(1) Required to be so inserted by the laws of the insurer's state of domicile;16
or. 17
* * *18
§866. Articles of incorporation; by-law bylaw provisions 19
No policy shall contain any provision purporting to make any portion of the20
articles of incorporation, by-laws, bylaws, or other constituent document of the21
insurer a part of the contract unless such portion is set forth in full in the policy. Any22
policy provision in violation of this Section shall be invalid.23
§867. Must contain entire contract with exceptions24
A. No agreement in conflict with, modifying, or extending the coverage of25
any contract of insurance shall be valid unless it is in writing and physically made26
a part of the policy or other written evidence of insurance, or it is incorporated in the27
policy or other written evidence of insurance by specific reference to another policy28
or written evidence of insurance. This Section shall not apply to contracts as29
provided in Subpart C of Part IV of this Chapter. 4 of this Title.30 ENROLLEDHB NO. 463
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B. The provisions of this Section shall apply where a policy or other written1
evidence of insurance is coupled by specific reference with another policy or written2
evidence of insurance in existence as of the effective date hereof or issued thereafter.3
C. Any written agreement in conflict with, modifying, or extending the4
coverage of any contract of insurance shall be deemed to be physically made a part5
of a policy or other written evidence of insurance, within the meaning of this section6
Section, whenever such written agreement makes reference to such policy or7
evidence of insurance and is sent to the holder of such policy or evidence of8
insurance by United States mail, postage prepaid, at such holder's last known address9
as shown on such policy or evidence of insurance or is personally delivered to such10
holder.11
§868. Limiting actions; jurisdiction12
A. No insurance contract delivered or issued for delivery in this state and13
covering subjects located, resident, or to be performed in this state, or any group14
health and accident policy insuring a resident of this state regardless of where made15
or delivered, shall contain any condition, stipulation, or agreement : either:16
(1) Requiring it to be construed according to the laws of any other state or17
country except as necessary to meet the requirements of the motor vehicle financial18
responsibility laws of such other state or country; or.19
* * *20
B. No insurance contract delivered or issued for delivery in this state and21
covering subjects located, resident, or to be performed in this state, or any health and22
accident policy insuring a resident of this state regardless of where made or23
delivered, shall contain any condition, stipulation, or agreement limiting right of24
action against the insurer to a period of less than twenty-four months next after the25
inception of the loss when the claim is a first-party claim, as defined in R.S. 22:1692,26
and arises under any insurance classified and defined in R.S. 22:47(6), (7), (10), (11),27
(12), (13), and (15), and (19) or to a period of less than one year from the time when28 ENROLLEDHB NO. 463
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the cause of action accrues in connection with all other insurances unless otherwise1
specifically provided in this Code.2
* * *3
§871. Signature of agent producer4
Every duly licensed insurance agent producer who solicits information to be5
contained on any application for individual life or individual, family group, or6
association health and accident insurance shall affix his legal signature thereto. No7
such agent producer shall sign any application described above unless he personally8
obtained the information shown on such application. Such information may be9
obtained by the agent producer in person, by telephone, or by any other means of10
direct communication between the agent producer and the applicant.11
* * *12
§875. Intervening breach 13
If any breach of a warranty or condition in any insurance contract occurs14
prior to a loss under the contract, such breach shall not avoid void the contract nor15
avail allow the insurer to avoid liability, unless the breach is material and exists at16
the time of the loss.17
§876. Assignment of policies18
Subject to the terms of the policy relating to its assignment, life insurance19
policies, other than group life insurance policies, annuity, and health and accident20
policies providing benefits for accidental death, whether such policies were21
heretofore or hereafter issued, and under the terms of which the beneficiary may be22
changed upon the sole request of the insured, may be assigned either by pledge or23
transfer of title, by an assignment executed by the insured alone and delivered to the24
insurer, whether or not the pledgee or assignee is the insurer. This Section shall not25
prohibit the assignment by the insured of any certificate of insurance issued under26
a group life insurance policy. Any such assignment shall entitle the insurer to deal27
with the assignee as the owner or pledgee of the policy in accordance with the terms28
of the assignment, until the insurer has received at its home office written notice of29 ENROLLEDHB NO. 463
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termination of the assignment or pledge. No insurer shall prohibit the assignment1
to a viatical settlement provider of a policy otherwise assignable.2
§877. Payment discharges insurer 3
Whenever the proceeds of, or payments under a life endowment or health and4
accident insurance policy or any annuity contract issued by a life insurance company,5
heretofore or hereafter issued, become payable and the insurer makes payment6
thereof in accordance with the terms of the policy or contract or in accordance with7
any written assignment thereof or of any interest thereunder, hereafter made, the8
person then designated in the policy or contract or by such assignment as being9
entitled thereto, shall be entitled to receive such proceeds or payments and to give10
full acquittance therefor, and such payment shall fully discharge the insurer from all11
claims under the policy or contract unless, before payment is made, the insurer has12
received at its home office, written notice by or on behalf of some other person that13
such other person claims to be entitled to such payment or some interest in the policy14
or contract. Nothing contained in this Section shall affect any claim or right to any15
policy or contract or the proceeds thereof or payments thereunder as between persons16
other than the insurer.17
§878. Forms for proof of loss furnished18
Any insurer requiring completion of a proof of loss form shall furnish provide19
such form to any person claiming to have a loss under any insurance contract. But;20
however, such insurer shall not, by reason of the requirement so to furnish provide21
forms, have any responsibility for or with reference to the completion of such proof22
or the manner of any such completion or attempted completion.23
§879. Claim administration not waiver 24
None of the following acts by or on behalf of an insurer shall be deemed to25
constitute a waiver of any provision of a policy or of any defense of the insurer :26
thereunder:27
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(2) Furnishing Providing forms for reporting a loss or claim, for giving1
information relative thereto, or for making proof of loss, or receiving or2
acknowledging receipt of any such forms or proofs completed or incompleted.3
(3) Investigating any loss or claim under any policy or engaging in4
negotiations looking toward considering a possible settlement of any such loss or5
claim.6
§880. Validity of noncomplying forms 7
Any insurance policy, rider, or endorsement hereafter issued and otherwise8
valid, which contains any condition or provision not in compliance with the9
requirements of this Code, shall not be rendered invalid, thereby, but shall be10
construed and applied in accordance with such conditions and provisions as would11
have applied had such policy, rider, or endorsement been in full compliance with this12
Code.13
* * *14
§882. Waiver of subrogation 15
Under any policy of insurance which authorizes the insured to waive the right16
of recovery of the insured against any party prior to loss without additional premium,17
the insured shall also be entitled to waive in writing after loss without invalidating18
the policy the right of recovery against any of the following: 19
(1) Anyone insured under the same policy;. 20
(2) A corporation, partnership or other entity in which the insured owns21
stock or has a proprietary interest ;. 22
(3) Anyone who owns stock or has a proprietary interest in the insured ;. 23
(4) An employee or employer of the insured ;. 24
(5) Anyone having an interest as owner, lessor, or lessee of the insured25
premises or the premises on which the loss occurred and the employees, partners,26
and stockholders of such owner, lessor, or lessee; and. 27
* * *28
§883. Stop-loss insurance coverage29
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C. A stop-loss or excess insurance policy form intended for issue to cover1
losses of a group health plan, as defined in R.S. 22:1061(1), shall be submitted to the2
Department of Insurance for prior approval pursuant to the policy form filing3
requirements established by R.S. 22:861 and shall satisfy the following conditions:4
* * *5
(5)6
* * *7
(c) All applications for stop-loss or excess insurance that include the option8
to purchase a policy providing coverage restricted to claims both incurred and paid9
during the contract term must contain a form for acceptance or rejection of the offer10
mandated in Subparagraph (5)(b) of this Paragraph and must include disclosures as11
prescribed by the commissioner.12
(d) All applications for stop-loss or excess insurance including options to13
purchase a policy providing coverage for claims incurred prior to the contract term,14
or providing coverage for claims incurred prior to the contract term but paid during15
the contract term, must contain a form for acceptance or rejection of the offer16
mandated in Subparagraph (5)(b) of this Paragraph and must include disclosures as17
prescribed by the commissioner.18
* * *19
§884. Incontestability after reinstatement 20
The reinstatement of any policy of life or noncancellable disability insurance21
or contract of annuity delivered or issued for delivery in this state after 12:00 noon22
of October 1, 1948, shall be incontestable after the same period following23
reinstatement and with the same conditions and exceptions, as provided in the policy24
or contract with respect to the incontestability. thereof.25
§885. Cancellation by the insured; surrender26
A. Cancellation by the insured of any policy which by its terms is27
cancellable may be cancelled at the insured's option or of any binder based on such28
policy may be effected by written notice thereof to the insurer and surrender of the29
policy or binder for cancellation prior to or on the effective date of such cancellation.30 ENROLLEDHB NO. 463
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In the event the policy or binder has been lost or destroyed and cannot be so1
surrendered, the insurer may in lieu of such surrender accept and in good faith rely2
upon the insured's written statement setting forth the fact of such loss or destruction.3
* * *4
C. The surrender of a policy to the insurer for any cause by any person5
named therein as having an interest insured thereunder under the policy shall create6
a presumption that such surrender is concurred in agreed to by all persons so named.7
D. This Section shall not apply to life insurance policies or to annuity8
contracts, nor to the contracts provided in Subpart C of Part IV of this Chapter. 4. of9
this Title.10
§886. Cancellation by the commissioner of insurance 11
The commissioner of insurance may order the immediate cancellation of any12
policy the procuring or effectuation of which was accomplished through or13
accompanied by a violation of this Code, except in cases where the policy by its14
terms is not cancellable cannot be cancelled by the insurer and the insured did not15
knowingly participate in any such violation.16
§887. Cancellation by insurer; changes to homeowner's insurance policies17
A. Cancellation by the insurer of any policy which by its terms is cancelable18
may be cancelled at the option of the insurer, or of any binder based on such policy,19
may be effected as to any interest only upon compliance with either of the following:20
(1)21
* * *22
(b) Upon the written request of the named insured, the insurer shall provide23
to the insured in writing the reasons for cancellation of the policy. There shall be no24
liability on the part of and no cause of action of any nature shall arise against any25
insurer or its agents, producers, employees, or representatives for any action taken26
by them to provide the reasons for cancellation as required by this Subparagraph.27
(2) Like notice must also be so delivered or mailed to each mortgagee,28
pledgee, or other known person shown by the policy to have an interest in any loss29 ENROLLEDHB NO. 463
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which may occur. thereunder. For purposes of this Paragraph, "delivered" includes1
electronic transmittal, facsimile, or personal delivery.2
* * *3
B. The mailing of any such notice shall be effected by depositing it in a4
sealed envelope, directed to the addressee at his last address as known to the insurer5
or as shown by the insurer's records, with proper prepaid postage affixed, in a letter6
depository of the United States Post Office. The insurer shall retain in its records7
any such item so mailed, together with its envelope, which was returned by the Post8
Office post office upon failure to find, or deliver the mailing to the addressee.9
* * *10
D.(1) The portion of any premium paid to the insurer on account of the11
policy, including unearned commission, unearned because of the cancellation and in12
amount as computed on the pro rata basis, must be actually paid to the insured, the13
agent of the insured, or other person entitled thereto as shown by the policy or by any14
endorsement thereon, or be mailed to the insured or such person as soon as15
practicable following such cancellation. Any such payment may be made by cash,16
or by check, bank draft, or money order.17
* * *18
E. This Section shall not apply to temporary life insurance binders nor to19
contracts of life, annuity, or health and accident insurance which do not contain a20
provision for cancellation prior to the date to which premiums have been paid, nor21
to the contracts provided in Subpart C of Part IV of this Chapter. 4 of this Title.22
* * *23
G.24
* * *25
(2) Like notice shall also be delivered or mailed to each mortgagee, pledgee,26
or other known person shown by the policy to have an interest in any loss which may27
occur. thereunder. For purposes of this Paragraph, "delivered" includes electronic28
transmittal, facsimile, or personal delivery.29
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H. Notice of cancellation or nonrenewal given by the insurer in accordance1
with this Chapter shall be deemed sufficient. The insurance producer, insurance2
agent, or insurance broker shall not be required to give any separate or additional3
notice of cancellation or nonrenewal.4
§888. Cancellation by insurer; failure to maintain membership in required5
organization 6
* * *7
B. Cancellation under this Section by the insurer of any policy or of any8
binder based on such policy, may be effected as to any interest only upon compliance9
with either or both of the following: 10
(1)(a) Written notice of such cancellation must be actually delivered or11
mailed to the insured or to his representative in charge of the subject of the insurance12
not less than twenty days prior to the effective day date of the cancellation.13
(b) Upon the written request of the named insured, the insurer shall provide14
to the insured in writing the reasons for cancellation of the policy. There shall be no15
liability on the part of and no cause of action of any nature shall arise against any16
insurer or its agents, producers, employees, or representatives for any action taken17
by them to provide the reasons for cancellation as required by this Subparagraph.18
(2) Like notice must also be so delivered or mailed to each mortgagee,19
pledgee, or other known person shown by the policy to have an interest in any loss20
which may occur . thereunder.21
* * *22
C. The mailing of any such notice shall be effected by depositing it in a23
sealed envelope, directed to the addressee at his last address as known to the insurer24
or as shown by the insurer's records, with proper prepaid postage affixed, in a letter25
depository of the United States post office. Postal Service. The insurer shall retain26
in its records any such item so mailed, together with its envelope, which was27
returned by the post office upon failure to find, or deliver the mailing to the28
addressee.29 ENROLLEDHB NO. 463
Page 17 of 17
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
D. The affidavit of the individual making or supervising such a mailing, shall1
constitute prima facie evidence of such facts of the mailing as are therein affirmed.2
E. The portion of any premium paid to the insurer on account of the policy,3
unearned because of the cancellation and in an amount as computed on the pro rata4
basis, must be actually paid to the insured, or other person entitled thereto as shown5
by the policy or by any endorsements thereon, or be mailed to the insured, his6
representative, or such other person as soon as practicable following such7
cancellation. Any such payment may be made by cash, or by check, bank draft, or8
money order.9
Section 2. The Louisiana State Law Institute is hereby directed to redesignate R.S.10
22:881.1 as R.S. 22:890.11
Section 3. This Act shall become effective on January 1, 2011.12
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: