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Regular Session, 2010
HOUSE BILL NO. 465
BY REPRESENTATIVE KLECKLEY
INSURANCE/PROPERTY: Provides for technical recodification of certain provisions of
the La. Insurance Code relative to property insurance
AN ACT1
To amend and reenact R.S. 22:1261, 1262, 1263(A), 1265(A)(1) and (2) and (B),2
1266(A)(introductory paragraph) and (1), (D)(1), (2), (3)(a)(i), (b), (c)(i), and (d)(i)3
and (iii), and (4), (E)(1)(b) and (3), (I), (K), and (L), 1267(A), (B)(3), (C)(1)(g), and4
(D)(3), 1268(A)(introductory paragraph) and (1), 1269(A), (B)(1)(introductory5
paragraph) and (a) through (e), and (D), 1270(A) and (B)(1)(a) and (b), 1283(A) and6
(B), 1284(C), 1285, 1288(A), 1290, 1295(1)(a)(i), (c), and (e), (5), and (6)(d),7
1311(A), (B), (D)(introductory paragraph) and (1) and (E), 1312, 1313(A) and (B),8
1314, 1333(A) and (B)(1), (2), and (3), 1456(A) and (B)(1), 1460(G), 1466(A) and9
(E), 1468(C), 1470(A), 1471(B), 1472(A) and (B), 1473(A), 1474, 1479, 1482(A),10
and 1484(A)(1) and to repeal R.S. 22:1475(C) and (D) and 1480, all relative to11
technical recodification of certain provisions of the Louisiana Insurance Code12
relative to property insurance, including correction of citations, updates of terms and13
language, reorganization of provisions, elimination of obsolete or ineffective14
provisions, and harmonizing of inconsistent provisions; and to provide for related15
matters.16 HLS 10RS-153 REENGROSSED
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Be it enacted by the Legislature of Louisiana:1
Section 1. R.S. 22:1261, 1262, 1263(A), 1265(A)(1) and (2) and (B),2
1266(A)(introductory paragraph) and (1), (D)(1), (2), (3)(a)(i), (b), (c)(i), and (d)(i) and (iii),3
and (4), (E)(1)(b) and (3), (I), (K), and (L), 1267(A), (B)(3), (C)(1)(g), and (D)(3),4
1268(A)(introductory paragraph) and (1), 1269(A), (B)(1)(introductory paragraph) and (a)5
through (e), and (D), 1270(A) and (B)(1)(a) and (b), 1283(A) and (B), 1284(C), 1285,6
1288(A), 1290, 1295(1)(a)(i), (c), and (e), (5), and (6)(d), 1311(A), (B), (D)(introductory7
paragraph) and (1) and (E), 1312, 1313(A) and (B), 1314, 1333(A) and (B)(1), (2), and (3),8
1456(A) and (B)(1), 1460(G), 1466(A) and (E), 1468(C), 1470(A), 1471(B), 1472(A) and9
(B), 1473(A), 1474, 1479, 1482(A), and 1484(A)(1) are hereby amended and reenacted to10
read as follows: 11
§1261. Renewal of policy; increase in premiums prohibited12
A. Any insurance policy terminating by its terms at a specified expiration13
date and not otherwise renewable may be renewed or extended at the option of the14
insurer. and Such renewal shall be made upon a currently authorized renewal form15
and at the premium rate then required therefor for a specific additional period or16
periods by a certificate or by endorsement of the policy, and without requiring the17
issuance of a new policy.18
B. No insurer shall increase the premium charged for an automobile liability19
insurance policy at the time of renewal for any insured solely on the grounds that the20
insured's policy has lapsed provided if the policy is renewed within ten days after the21
date of termination.22
§1262. Annulment of liability policies 23
No insurance contract insuring against loss or damage through legal liability24
for the bodily injury or death by accident of any individual, or for damage to the25
property of any person, shall be retroactively annulled by any agreement between the26
insurer and insured after the occurrence of any such injury, death, or damage for27
which the insured may be liable, and any such annulment attempted shall be null and28
void.29 HLS 10RS-153 REENGROSSED
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§1263. Premises used as polling places; prohibited provisions excluding or limiting1
coverage 2
A. A provision in a liability or other insurance policy which excludes or3
limits coverage solely because premises are being used as a polling place in an4
election shall be null and shall be void and unenforceable as contrary to public5
policy.6
* * *7
§1265. Property, casualty, and liability insurance policies; cancellation and8
nonrenewal provisions; nonrenewal for rate inadequacy; certain prohibitions9
A.(1) Any insurer cancelling or refusing to renew a policy providing10
property, casualty, or liability insurance on any property shall, upon written request11
of the policy's named insured, therein, specify in writing the reason or reasons for12
such cancellation or refusal to renew. Such request shall be mailed or delivered to13
the insurer within six months after the effective date of cancellation or expiration,.14
specify in writing the reason or reasons for such cancellation or refusal to renew.15
(2) There shall be no liability on the part of and no cause of action of any16
nature shall arise against any insurer or its agents, producers, employees, or17
representatives for any action taken by them to provide the reasons for cancellation18
as required by this Subsection.19
* * *20
B. There shall be no liability on the part of and no cause of action of any21
nature shall arise against the commissioner of insurance or against any insurer, its22
authorized representative, its agents, producers, its employees, or any firm, person,23
or corporation furnishing to the insurer information as to reasons for cancellation or24
refusal to renew, or in any other communication, oral or written, specifying the25
reasons for cancellation or refusal to renew, or the providing of information26
pertaining thereto, or for statements made or evidence submitted at any hearings27
conducted in connection therewith.28
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§1266. Automobile, property, casualty, and liability insurance policies;1
cancellations2
A. As used in this Subpart: Part:3
(1) "Policy" means an automobile liability, automobile physical damage, or4
automobile collision policy, or any combination thereof, delivered or issued for5
delivery in this state, or any binder based on such a policy, insuring a single6
individual or husband and wife resident of the same household, as named insured,7
and under which the insured vehicles therein designated are of the following types8
only:9
(a) A motor private passenger vehicle of the private passenger or station10
wagon type that is not used as a public or livery conveyance for passengers, nor11
rented to others; or.12
(b) Any other four-wheel motor vehicle with a load capacity of fifteen13
hundred pounds or less which is not used in the occupation, profession or business14
of the insured; provided, however, that this shall not apply to:15
(1) to any (i) Any policy issued under an automobile assigned risk plan,. or16
(2) to any (ii) Any policy insuring more than four automobiles,. or17
(3) to any (iii) Any policy covering garage, automobile sales agency, repair18
shop, service station, or public parking place operation hazards.19
* * *20
D.(1) No notice of cancellation of a policy to which Subsection B or C of21
this Section applies shall be effective unless mailed by certified mail or delivered by22
the insurer to the named insured at least thirty days prior to the effective date of23
cancellation; however, when cancellation is for nonpayment of premium at least ten24
days notice of cancellation accompanied by the reason therefor shall be given. In the25
event of nonpayment of premiums for a binder, a ten-day notice of cancellation shall26
be required before the cancellation shall be effective. Notice of cancellation for27
nonpayment of premiums shall not be required to be sent by certified mail. Unless28
the reason accompanies the notice of cancellation, the notice of cancellation shall29 HLS 10RS-153 REENGROSSED
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state or be accompanied by a statement that upon written request of the named1
insured, mailed or delivered to the insurer within six months after the effective date2
of cancellation, the insurer will specify the reason for such cancellation. This3
Subsection shall not apply to nonrenewal.4
(2) There shall be no liability on the part of and no cause of action of any5
nature shall arise against any insurer or its agents, producers, employees, or6
representatives for any action taken by them to provide the reasons for cancellation7
as required by this Subsection.8
(3)(a)(i) Payment of an initial, renewal, or installment insurance premium9
by the insured to an insurer or an insurance agent a producer with a check or other10
negotiable instrument which is returned to the payee by the institution upon which11
it is drawn for insufficient funds available in the account, for lack of credit, for the12
reason the account is closed, for stopped payment, or for any other reason shall be13
deemed grounds for the insurer to cancel the binder or policy from the date the14
premium payment was due for the initial or renewal term, whichever is applicable.15
* * *16
(b)(i) The insurance agent producer shall immediately, and in no case later17
than ten days after the agent or premium finance company has received notice of the18
returned check or negotiable instrument, notify the insurer of the receipt of the19
returned check or negotiable instrument.20
(ii) The insurer shall immediately, and in no case later than ten days after the21
agent producer or premium finance company has notified the insurer, notify the22
named insured, by certified mail or delivering to the named insured a written notice23
that the policy is canceled from the date the premium payment was due. The insurer24
shall advise the named insured that the policy shall be reinstated effective from the25
date the premium payment was due for the term of the policy only if the named26
insured or his legal representative presents to the insurer a cashier's check or money27
order for the full amount of the returned check or other negotiable instrument within28
ten days of the date that the notice of cancellation was mailed.29 HLS 10RS-153 REENGROSSED
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(c) Upon expiration of the ten-day period, either:1
(i) The insurer shall reinstate the insured's policy, from the date that the2
premium was due, and shall pay directly to the insurance agent producer all funds3
paid to the insurer by the insured or his legal representative to replace the dishonored4
check or other negotiable instrument; or.5
* * *6
(d)(i) Within ten days of the expiration of the ten-day notice, the insurer shall7
return all funds paid by the insurance agent producer to the insurer on behalf of the8
insured except when an insurance premium finance company has funded an insured's9
policy, the insurer shall return those funds directly to the insurance premium finance10
company. These funds shall be returned by check or other negotiable instrument and11
shall not be placed on the agent's producer's or premium finance company's account12
currents unless the agent producer or premium finance company and the insurer have13
agreed to other methods for handling these funds. Funds received by the insurance14
premium finance company in excess of the amount funded by the insurance premium15
finance company shall be forwarded to the insurance agent. producer.16
* * *17
(iii) When an insured pays the dishonored check by delivery to the agent of18
cash or a certified check, the agent producer shall notify the insurer within ten days19
of the payment of the dishonored check.20
* * *21
(4)(a) In the event that an agent, broker, surplus lines insurance broker, or22
insurance solicitor a producer incorrectly states the premium amount for the23
automobile liability policy, the insured may cancel the policy and shall be returned24
the initial payment of premium, including fees and costs, less the prorated cost for25
the period of time of coverage at the initial stated premium, including fees and costs,26
and may cancel the insurance coverage, without penalty or loss of coverage, for the27
period of time that the premium, including fees and costs, was paid.28 HLS 10RS-153 REENGROSSED
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(b) When an insurance premium finance company has funded an insured's1
policy and the policy is cancelled, the insurer shall return the funds directly to the2
insurance premium finance company. Any funds received by the insurance premium3
finance company in excess of the amount owed to the insurance premium finance4
company by the insured shall be forwarded to the insurance agent producer to be5
returned to the insured. The insurer shall not withhold any more funds from the6
insurance premium finance company than would otherwise be withheld from the7
insured. No insurer shall assess a service charge for this transaction.8
E.(1) No insurer shall fail to renew a policy unless it shall mail or deliver to9
the named insured, at the address shown in the policy, at least twenty days advance10
notice of its intention not to renew. This Subsection shall not apply:11
* * *12
(b) In case of nonpayment of premium; provided that, however,13
notwithstanding the failure of an insurer to comply with this Subsection, the policy14
shall terminate on the effective date of any other insurance policy with respect to any15
automobile designated in both policies.16
* * *17
(3) Upon the written request of the named insured, the insurer shall provide18
to the insured in writing the reasons for nonrenewal of the policy. There shall be no19
liability on the part of and no cause of action of any nature shall arise against any20
insurer or its agents, producers, employees, or representatives for any action taken21
by them to provide the reasons for nonrenewal as required by this Paragraph.22
* * *23
I. There shall be no liability on the part of and no cause of action of any24
nature shall arise against the commissioner of insurance or against any insurer, its25
authorized representative, its agents, producers, its employees, or any firm, person,26
or corporation furnishing to the insurer information as to reasons for cancellation, for27
any statement made by any of them in any written notice of cancellation, or in any28
other communication, oral or written, specifying the reasons for cancellation, or the29 HLS 10RS-153 REENGROSSED
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providing of information pertaining thereto, or for statements made or evidence1
submitted at any hearings conducted in connection therewith.2
* * *3
K. No insurer shall cancel an automobile insurance policy written or issued4
for delivery in this state belonging to an insured over the age of sixty-five based5
upon the age of the insured provided the insured is mentally and physically capable6
of driving an automobile and possesses a valid Louisiana operator's license issued7
by the office of motor vehicles in of the Louisiana Department of Public Safety and8
Corrections.9
L. No insurer shall cancel an automobile insurance policy for any insured10
solely on the ground that the insured has submitted a single claim under his or her11
the policy for damage incurred or arising from the operation of an automobile. The12
provisions of this Subsection shall not prohibit an insurer from increasing the cost13
of the insured's premium based on the number of claims submitted under his or her14
the policy for damage incurred or arising from the operation of an automobile. For15
the purposes of this Subsection, an incident shall be deemed a claim only when there16
is a demand for payment under the terms of the policy. A report of loss or a question17
relating to coverage shall not independently establish a claim.18
§1267. Commercial insurance; cancellation and renewal19
A. This Section shall apply to commercial property insurance policies and20
commercial multi-peril insurance policies;, workers' compensation insurance,21
professional errors and omissions policies, commercial liability insurance policies,22
other than aviation, and employers' liability insurance policies. It shall not apply to23
reinsurance, excess and surplus lines insurance, residual market risks, multistate24
location risks, policies subject to retrospective rating plans, excess or umbrella25
policies, and such other policies that are exempted by the commissioner of insurance.26
B. For the purposes of this Section, the following terms shall mean:27
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(3) "Nonpayment of premium" means the failure or inability of the named1
insured to discharge any obligation in connection with the payment of premiums on2
a policy of insurance subject to this regulation, whether such payments are payable3
directly to the insurer or its agent producer or indirectly payable under a premium4
finance plan or extension of credit.5
* * *6
C.(1) If coverage has not been in effect for sixty days and the policy is not7
a renewal, cancellation shall be effected by mailing or delivering a written notice to8
the first-named insured at the mailing address shown on the policy at least sixty days9
before the cancellation effective date, except in cases where cancellation is based on10
nonpayment of premium. Notice of cancellation based on nonpayment of premium11
shall be mailed or delivered at least ten days prior to the effective date of12
cancellation. After coverage has been in effect for more than sixty days or after the13
effective date of a renewal policy, no insurer shall cancel a policy unless the14
cancellation is based on at least one of the following reasons:15
* * *16
(g) Such other Other reasons that are approved by the commissioner of17
insurance.18
* * *19
D.20
* * *21
(3) If an insurer provides the notice described in R.S. 22:1267(D) Paragraph22
(1) of this Subsection and thereafter the insurer extends the policy for ninety days or23
less, an additional notice of nonrenewal is not required with respect to the extension.24
* * *25
§1268. Interest on refund; exception 26
A. Any refund due an insured by an insurer writing or delivering insurance27
policies excluding health and insurance, life insurance, and annuities in the state28
because of either cancellation, elimination, or reduction of coverage by the insurer29 HLS 10RS-153 REENGROSSED
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or the insured, shall be accompanied with interest at the rate of one and one-half1
percent per month of the amount of the refund due the customer, without the benefit2
of daily proration of this monthly interest, after thirty days of either of the following:3
(1) The delivery to the insured of the written notice of such cancellation,4
elimination, or reduction;. 5
* * *6
§1269. Liability policy; insolvency or bankruptcy of insured and inability to effect7
service of citation or other process; direct action against insurer8
A. No policy or contract of liability insurance shall be issued or delivered in9
this state, unless it contains provisions to the effect that the insolvency or bankruptcy10
of the insured shall not release the insurer from the payment of damages for injuries11
sustained or loss occasioned during the existence of the policy, and any judgment12
which may be rendered against the insured for which the insurer is liable which shall13
have become executory, shall be deemed prima facie evidence of the insolvency of14
the insured, and an action may thereafter be maintained within the terms and limits15
of the policy by the injured person, or his or her survivors, mentioned in Civil Code16
Art. 2315.1, or heirs against the insurer.17
B.(1) The injured person or his or her survivors or heirs mentioned in18
Subsection A, of this Section, at their option, shall have a right of direct action19
against the insurer within the terms and limits of the policy; and, such action may be20
brought against the insurer alone, or against both the insured and insurer jointly and21
in solido, in the parish in which the accident or injury occurred or in the parish in22
which an action could be brought against either the insured or the insurer under the23
general rules of venue prescribed by Code of Civil Procedure Art. 42 only; However24
however, such action may be brought against the insurer alone only when : at least25
one of the following applies:26
(a) The insured has been adjudged a bankrupt by a court of competent27
jurisdiction or when proceedings to adjudge an insured a bankrupt have been28
commenced before a court of competent jurisdiction;. 29 HLS 10RS-153 REENGROSSED
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(b) The insured is insolvent;. 1
(c) Service of citation or other process cannot be made on the insured;. 2
(d) When the cause of action is for damages as a result of an offense or3
quasi-offense between children and their parents or between married persons;.4
(e) When the insurer is an uninsured motorist carrier; or.5
* * *6
D. It is also the intent of this Section that all liability policies within their7
terms and limits are executed for the benefit of all injured persons and their survivors8
or heirs to whom the insured is liable; and, that it is the purpose of all liability9
policies to give protection and coverage to all insureds, whether they are named10
insured or additional insureds under the omnibus clause, for any legal liability said11
the insured may have as or for a tort-feasor within the terms and limits of said the12
policy.13
§1270. Personal property; specific coverage; valuation; exemptions 14
A. In any case in which a policy includes coverage for loss of or damage to15
personal property of the insured, from whatever cause, if the insurer places a16
valuation upon the specific item of covered property and uses such valuation for17
purposes of determining the premium charge to be made under the policy, the insurer18
shall compute any covered loss of or damage to such property which occurs during19
the term of the policy at such valuation without deduction or offset, unless a different20
method is to be used in the computation of loss, in which latter case, the policy, and21
any application therefor, for the policy, shall set forth in type of prominent size, the22
actual method of such loss computation by the insurer.23
B.(1) The provisions of this Section shall not apply to any of the following:24
(a) Insurance of the kind referred to in R.S. 22:47(3) when the coverage25
pertains to land vehicles;. 26
(b) Any property used primarily for business purposes ; or. 27
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§1283. Proof of motorcycle endorsement1
A. Each person who makes an application for issuance of a policy of2
insurance covering a motorcycle shall provide proof of the appropriate license3
endorsement required by R.S. 32:408(C). Such proof shall be provided to the insurer4
or its agent producer at the time of application for such policy. If the policy of5
insurance is issued by an insurer which that does not maintain an office in this state,6
then the person may submit a sworn affidavit that he has the proper license7
endorsement to the insurer.8
B. No insurer or agent producer of an insurer shall issue a policy of9
insurance which that will cover a motorcycle unless the applicant has provided proof10
of the appropriate license endorsement required by R.S. 32:408(C).11
* * *12
§1284. Motor vehicle insurance; consideration of nonfault incidents prohibited 13
* * *14
C. Any insurer who violates this Section shall refund to the insured person15
the amount of premium which was paid which exceeded the premium which would16
have been charged if the insurer had complied with this Section, together with a17
penalty payment in amount equal to triple the amount of the refund or one thousand18
dollars, whichever is greater. The insured shall also be entitled to attorneys attorney19
fees should he prevail.20
* * *21
§1285. Automobile insurance policies; refusal to issue or renew; age discrimination22
No insurer shall refuse to issue or renew an automobile insurance policy to23
any person over the age of sixty-five based upon the age of the insured provided the24
insured is mentally and physically capable of driving an automobile and possesses25
a valid Louisiana operator's license issued by the office of motor vehicles in of the26
Louisiana Department of Public Safety and Corrections.27
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§1288. Discrimination in automobile liability insurance prohibited1
A. No insurer shall refuse to issue or renew, increase the premium, or cancel2
an automobile insurance policy solely because the insured is deaf or hard of hearing,3
provided such person is mentally and physically capable of driving an automobile4
and possesses a valid Louisiana operator's license issued by the office of motor5
vehicles in of the Louisiana Department of Public Safety and Corrections.6
* * *7
§1290. Motor vehicle liability policy 8
No settlement made under a motor vehicle liability insurance policy of for9
a claim against any insured thereunder arising from any accident or other event10
insured against for damage to or destruction of property owned by another person11
shall be construed as an admission of liability by the insured, or the insurer's12
recognition of such liability, with respect to any other claim arising from the same13
accident or event.14
* * *15
§1295. Uninsured motorist coverage16
The following provisions shall govern the issuance of uninsured motorist17
coverage in this state:18
(1)(a)(i) No automobile liability insurance covering liability arising out of19
the ownership, maintenance, or use of any motor vehicle shall be delivered or issued20
for delivery in this state with respect to any motor vehicle designed for use on public21
highways and required to be registered in this state or as provided in this Section22
unless coverage is provided therein or supplemental thereto, in not less than the23
limits of bodily injury liability provided by the policy, under provisions filed with24
and approved by the commissioner of insurance, for the protection of persons insured25
thereunder who are legally entitled to recover nonpunitive damages from owners or26
operators of uninsured or underinsured motor vehicles because of bodily injury,27
sickness, or disease, including death resulting therefrom; however, the coverage28
required under this Section is not applicable when any insured named in the policy29 HLS 10RS-153 REENGROSSED
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either rejects coverage, selects lower limits, or selects economic-only coverage, in1
the manner provided in Item (1)(a)(ii) of this Section. In no event shall the policy2
limits of an uninsured motorist policy be less than the minimum liability limits3
required under R.S. 32:900, unless economic-only coverage is selected as authorized4
herein. in this Section. Such coverage need not be provided in or supplemental to a5
renewal, reinstatement, or substitute policy when the named insured has rejected the6
coverage or selected lower limits in connection with a policy previously issued to7
him by the same insurer or any of its affiliates. The coverage provided under this8
Section may exclude coverage for punitive or exemplary damages by the terms of9
the policy or contract. Insurers may also make available, at a reduced premium, the10
coverage provided under this Section with an exclusion for all noneconomic loss.11
This coverage shall be known as "economic-only" uninsured motorist coverage.12
Noneconomic loss means any loss other than economic loss and includes but is not13
limited to pain, suffering, inconvenience, mental anguish, and other noneconomic14
damages otherwise recoverable under the laws of this state.15
* * *16
(c)(i) If the insured has any limits of uninsured motorist coverage in a policy17
of automobile liability insurance, in accordance with the terms of Subparagraph18
(1)(a) of this Section, then such limits of liability shall not be increased because of19
multiple motor vehicles covered under said such policy of insurance, and such limits20
of uninsured motorist coverage shall not be increased when the insured has insurance21
available to him under more than one uninsured motorist coverage provision or22
policy; however, with respect to other insurance available, the policy of insurance23
or endorsement shall provide the following: (ii) With with respect to bodily injury24
to an injured party while occupying an automobile not owned by said injured party,25
resident spouse, or resident relative, and the following priorities of recovery under26
uninsured motorist coverage shall apply:27
(aa) (i) The uninsured motorist coverage on the vehicle in which the injured28
party was an occupant is primary;.29 HLS 10RS-153 REENGROSSED
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(bb) (ii) Should that primary uninsured motorist coverage be exhausted due1
to the extent of damages, then the injured occupant may recover as excess from other2
uninsured motorist coverage available to him. In no instance shall more than one3
coverage from more than one uninsured motorist policy be available as excess over4
and above the primary coverage available to the injured occupant.5
* * *6
(e) The uninsured motorist coverage does not apply to bodily injury,7
sickness, or disease, including the resulting death of an insured, resulting therefrom,8
while occupying a motor vehicle owned by the insured if such motor vehicle is not9
described in the policy under which a claim is made, or is not a newly acquired or10
replacement motor vehicle covered under the terms of the policy. This provision11
shall not apply to uninsured motorist coverage provided in a policy that does not12
describe specific motor vehicles.13
* * *14
(5) The coverage required under this Section may include provisions for the15
submission of claims by the assured to arbitration; provided, however, that the16
submission to arbitration shall be optional with the assured, insured, shall not deprive17
the assured insured of his right to bring action against the insurer to recover any18
sums due him under the terms of the policy, and shall not purport to deprive the19
courts of this state of jurisdiction of actions against the insurer.20
(6) In any action to enforce a claim under the uninsured motorist provisions21
of an automobile liability policy the following shall be admissible as prima facie22
proof that the owner and operator of the vehicle involved did not have automobile23
liability insurance in effect on the date of the accident in question:24
* * *25
(d) The effect of the prima facie evidence referred to in Subparagraphs (a),26
(b), and (c) above of this Paragraph is to shift the burden of proof from the party or27 HLS 10RS-153 REENGROSSED
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parties alleging the uninsured status of the vehicle in question to their uninsured1
motorist insurer.2
* * *3
§1311. Fire insurance contract; standard provisions; variations4
A. The printed form of a policy of fire insurance, as set forth in Subsection5
F of this Section, shall be known and designated as the "standard fire insurance6
policy of the State of Louisiana."7
B.(1) No policy or contract of fire insurance shall be made, issued, or8
delivered by any insurer, or by any agent producer or representative thereof, on any9
property in this state, unless it shall conform as to all provisions, stipulations,10
agreements, and conditions, with such form of policy. as provided in this Subpart.11
(2) There shall be printed at the head of said the policy the name of the12
insurer or insurers issuing the policy; the location of the home office thereof; a13
statement whether said insurer or insurers are stock or mutual corporations or are14
reciprocal insurers or Lloyds underwriters or, if organized under a special charter,15
a statement of such fact and the plan under which such insurer operates in this state;16
and there may be added thereto such device or devices as the insurer or insurers17
issuing said policy shall desire.18
(3) The standard fire insurance policy provided for herein need not be used19
for effecting reinsurance between insurers.20
(4) If the policy is issued by a mutual, co-operative cooperative, or reciprocal21
insurer having special regulations with respect to the payment by the policyholder22
of assessments, such regulations shall be printed upon the policy, and any such23
insurer may print upon the policy such regulations as may be appropriate to or24
required by its home state or its form of organization.25
* * *26
D. Two or more insurers authorized to do in this state engage in the business27
of fire insurance, in this state may, with the approval of the commissioner of28 HLS 10RS-153 REENGROSSED
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insurance, issue a combination standard form of fire insurance policy which shall1
contain the following provisions:2
(1) A provision substantially to the effect that the insurers executing such3
policy shall be severally liable for the full amount of any loss or damage, according4
to the terms of the policy, or for specified percentages or amounts thereof,5
aggregating the full amount of such insurance under such policy.6
* * *7
E.(1) Appropriate forms of other contracts or endorsements whereby the8
interest in the property described in such policy shall be insured against one or more9
of the perils which the insurer is empowered to assume, in addition to the perils10
covered by said standard fire insurance policy, may be approved and may, unless at11
any time disapproved by the commissioner of insurance, be used in connection with12
a standard fire insurance policy. and such Such forms may contain provisions and13
stipulations inconsistent with the standard policy if applicable only to such other14
perils. The first page of the policy may, in a form approved by the commissioner,15
be rearranged to provide space for the listing of amounts of insurance, rates and16
premiums for the basic coverages insured under the standard form of policy and for17
additional coverages or perils insured under endorsements attached, and such other18
data as may be conveniently included for duplication on daily reports for office19
records.20
(2)(a) Any policy or contract otherwise subject to the provisions of21
Subsections A and B hereof, of this Section, which includes either on an unspecified22
basis as to the coverage or for a single premium, coverage against the peril of fire23
and substantial coverage against other perils need not comply with the provisions of24
Subsections A and B hereof, of this Section provided each of the following apply:25
(1) (i) such policy or contract shall afford coverage, with respect to the peril of fire,26
not less than the coverage afforded by said standard fire policy ,; (2) (ii) the27
provisions in relation to mortgagee interests and obligations in said standard fire28
policy may be incorporated therein without change,; (3) (iii) such policy or contract29 HLS 10RS-153 REENGROSSED
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is complete as to all of its terms without reference to the standard form of fire1
insurance policy or any other policy,; and (4) (iv) the commissioner is satisfied that2
such policy or contract complies with the provisions hereof.3
(b) The pages of the Standard Fire Insurance Policy may be renumbered and4
the format rearranged for convenience in the preparation of individual contracts, and5
to provide space for the listing of rates and premiums for coverages insured6
thereunder or under endorsement attached or printed thereon, and such other data as7
may be conveniently included for duplication on daily reports for office records.8
* * *9
§1312. Forms to be furnished provided10
Upon receiving notice of loss from the insured, the insurer on the policy or11
contract of fire insurance shall furnish provide within thirty days to the insured a12
form suitable for filing a proof of loss and shall advise the insured that he is required13
under the terms of the policy or contract of fire insurance to submit a proof of loss.14
§1313. Fire insurance contract; standard provisions; variations15
A. Notwithstanding the requirements of R.S. 22:1311 concerning the use of16
the standard fire policy, provisions, the use of such form shall not be required in the17
event the policy forms covering the peril of fire are equivalent to or exceed the18
provisions of the standard fire policy.19
B. In the event that the policy forms used are not equivalent to or do not20
exceed the terms of the standard fire policy, all of the provisions of the standard fire21
policy shall become a part of the policy by physically attaching the standard fire22
policy. thereto.23
* * *24
§1314. Breach of warranties and conditions of fire policies and applications therefor25
A. No policy of fire insurance issued by any insurer on property in this state26
shall hereafter be declared void by the insurer for the breach of any representation,27
warranty, or condition contained in the said such policy or in the application therefor.28
Such breach shall not avail allow the insurer to avoid liability unless such breach: (1)29 HLS 10RS-153 REENGROSSED
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shall exist exists at the time of the loss, and be either such a breach as would increase1
either the moral or physical hazard under the policy,; or (2) shall be such a breach2
as would be a violation of a warranty or condition requiring the insurer to take and3
keep inventories and books showing a record of his business. 4
B. Notwithstanding the above provisions of Subsection A of this Section,5
such a breach shall not afford a defense to a suit on the policy if the fact or facts6
constituting such a breach existing at the time of the issuance of the policy and were,7
at such time, known to the insurer or to any of his or its officers or agents, or if the8
fact or facts constituting such a breach existed at the time of the loss and were, at9
such time, known to the insurer or to any of his or its officers or agents, except in10
case of fraud on the part of such officer or agent or the insured, or collusion between11
such officer or agent and the insured.12
* * *13
§1333. Homeowner's insurance; insurer's nonrenewal without cause; inclusion in14
insured's file prohibited; certain prohibitions15
A. Whenever a policy of homeowner's insurance is not renewed by the16
insurer and such nonrenewal is without cause, the fact of such nonrenewal shall not17
be retained in the insured's file with that insurer. Such nonrenewal shall not be18
considered a cancellation or nonrenewal for cause. The insurer shall not utilize such19
nonrenewal as a reason for an increase in the insured's rate or premium for20
equivalent coverage to that which was not renewed.21
B. In this Section, nonrenewal "without cause" shall not include nonrenewal22
by the insurer for any of the following reasons:23
(1) Nonrenewal at the request of the insured;.24
(2) Failure of the insured to pay the agreed premium ;.25
(3) Fraud on the part of the insured; or.26
* * *27 HLS 10RS-153 REENGROSSED
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§1456. Scope of rate regulation1
A. This Subpart applies to fire, marine and transportation, (inland marine),2
title insurance, and casualty insurance risks or operations in this state.3
B.(1) For the purpose of this Subpart, fire insurance includes insurance4
coverage as defined in R.S. 22:47(10), (11)(b), and (12), and such other coverages5
as are usually written by fire insurers other than motor vehicle insurance; marine and6
transportation (inland marine) insurance includes personal floater insurance and the7
kinds of insurance defined in R.S. 22:6(13) R.S. 22:47(13) and such other inland8
marine coverages as may be so established by interpretation, by ruling of the9
commissioner of insurance, or by general customs of the business; title insurance10
includes the kind of insurance coverage as defined in R.S. 22:47(9), and casualty11
insurance includes the kinds of casualty insurance defined in R.S. 22:47(3), (4), (5),12
and (6), except personal property floater, R.S. 22:47(7), (8), and (11)(a), and such13
other coverages as are usually written by casualty insurers.14
* * *15
§1460. Fire insurance rates; the Property Insurance Association of Louisiana16
* * *17
G.(1) Debit fire insurance policies are defined as policies issued by18
companies which write fire insurance through debit agents operating on the debit19
agency system and which meet the other requirements of this section. Section. The20
method of premium payment for debit fire insurance in the State state of Louisiana21
shall be only on a monthly or more frequent basis from the date this act Act becomes22
effective. No debit insurance policy shall be issued for an annual or less frequent23
premium.24
(2) Rates for debit fire insurance and allied lines shall be filed directly with25
the commissioner of insurance and shall be approved and supervised as to both initial26
filings and requested changes only by the commissioner. In all other respects, the27
commissioner of insurance shall have sole supervision and regulation of the28 HLS 10RS-153 REENGROSSED
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operation of debit fire insurance and allied lines in the State state of Louisiana, such1
insurers being specifically exempt from the assessments levied by the association.2
* * *3
§1466. Other rating organizations4
A. A corporation, an unincorporated association, a partnership, or an5
individual, whether located within or outside this state, may make application to the6
commissioner of insurance for license as a rating organization for such kinds of7
insurance, or subdivision, or class of risk, or a part or combination thereof as are8
specified in its application and shall file therewith: the following: (1) a copy of its9
constitution, its articles of agreement or association, or its certificate of10
incorporation, and of its bylaws, rules, and regulations governing the conduct of its11
business,; (2) a list of its members and subscribers,; (3) the name and address of a12
resident of this state upon whom notices or orders of the commissioner or a division13
or process affecting such rating organization may be served,; and (4) a statement of14
its qualifications as a rating organization. If the commissioner finds that the15
applicant is competent, trustworthy, and otherwise qualified to act as a rating16
organization and that the public interest would be served by issuing a license to such17
organization, not heretofore otherwise licensed, for a kind or class of insurance18
subject to this Subpart, and that its constitution, articles of agreement or association,19
or certificate of incorporation, and its bylaws, rules, and regulations governing the20
conduct of its business conform to the requirements of law, the commissioner shall21
issue a license specifying the kinds of insurance, or subdivision, or class of risk, or22
part or combination thereof for which the applicant is authorized to act as a rating23
organization. Every such application shall be granted or denied in whole or in part24
by the commissioner within sixty days of the date of its filing. with it. Licenses25
issued pursuant to this Section shall remain in effect for three years unless sooner26
suspended or revoked by the commissioner. Licenses issued pursuant to this Section27
may be suspended or revoked by the commissioner in accordance and compliance28
with R.S. 49:961 in the event the rating organization ceases to meet the requirements29 HLS 10RS-153 REENGROSSED
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of this Subsection. Every rating organization shall notify the commissioner promptly1
of every change in: the following: (1) its constitution, its articles of agreement, or2
association, or its certificate of incorporation, and its bylaws, rules, and regulations3
governing the conduct of its business,; (2) its list of members and subscribers,; and4
(3) the name and address of the resident of this state designated by it upon whom5
notices or orders of the commissioner or process affecting such rating organization6
may be served.7
* * *8
E. Any rating organization may provide for the examination of policies, daily9
reports, binders, renewal certificates, endorsements, or other evidences of insurance,10
or the cancellation thereof, and may make reasonable rules governing their11
submission. Such rules shall contain a provision that in the event any insurer does12
not within sixty days furnish satisfactory evidence to the rating organization of the13
correction of any error or omission previously called to its attention by the rating14
organization it shall be the duty of the rating organization to notify the commissioner15
of insurance. thereof. No such notification need shall be furnished to the16
commissioner unless it is apparent that if a public hearing will be required. All17
information so submitted for examination shall be confidential.18
* * *19
§1468. Deviations20
* * *21
C. In considering the application for permission to file such deviation in the22
case of fire, marine, and inland marine insurance, the commissioner of insurance23
shall give consideration to the available statistics and the applicable principles for24
ratemaking as provided in R.S. 22:1457. 1464. The commissioner shall approve such25
application if the rate sought to be used meets the requirements of R.S. 22:1457(3).26
1464(A)(3).27
* * *28 HLS 10RS-153 REENGROSSED
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§1470. Information to be furnished provided insureds; hearings and appeals of1
insureds2
A. Every rating organization and every insurer which makes its own rates3
shall, within a reasonable time after receiving a written request therefor and upon4
payment of such reasonable charge as it may make, furnish from an insured, provide5
to any insured affected by a rate made by it, or to the authorized representative of6
such insured, all pertinent information as to such rate. The insurer may charge a7
reasonable rate to provide the information. 8
* * *9
§1471. Advisory organizations10
* * *11
B. Every advisory organization shall file with the commissioner of insurance12
each of the following: (1) a copy of its constitution, its articles of agreement or13
association, or its certificate of incorporation and of its bylaws, rules, and regulations14
governing its activities,. (2) a list of its members,. (3) the name and address of a15
resident of this state upon whom notices or orders of the commissioner, or process16
issued at the direction of the commissioner may be served,. and (4) an agreement that17
the commissioner may examine such advisory organization in accordance with the18
provisions of Chapter 8 of this Title.19
* * *20
§1472. Joint underwriting or joint reinsurance21
A. Every group, association, or other organization of insurers which engages22
in joint underwriting or joint reinsurance, shall be subject to regulations with respect23
thereto and penalties as herein provided, subject, however, with respect to joint24
underwriting, to all other provisions of this Subpart, and with respect to joint25
reinsurance, to by this Subpart. Joint reinsurance shall also be subject to the26
provisions of R.S. 22:1474, and Chapter 8 of this Title,. and to the penalties provided27
for violation of this Subpart.28 HLS 10RS-153 REENGROSSED
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B. If, after a hearing, the commissioner of insurance finds that any activity1
or practice of any such group, association, or other organization is unfair, or2
unreasonable, or otherwise inconsistent with the provisions of this Subpart, the3
commissioner shall issue a written order specifying in what respects such activity or4
practice is unfair, or unreasonable, or otherwise inconsistent with the provisions of5
this Subpart, and requiring shall require the discontinuance of such activity or6
practice.7
* * *8
§1473. Rate administration9
A. Recording and reporting of loss and expense experience. The10
commissioner of insurance shall promulgate reasonable rules and statistical plans,11
reasonably adapted to each of the rating systems on file with the commissioner,12
which may be modified from time to time and which shall be used thereafter by each13
insurer in the recording and reporting of its loss and countrywide expense14
experience, in order that the experience of all insurers may be made available at least15
annually in such form and detail as may be necessary to aid the commissioner in16
determining whether rating systems comply with the standards set forth in R.S.17
22:1457. 1454. Such rules and plans may also provide for the recording and18
reporting of expense experience items which are specially applicable to this state and19
are not susceptible of determination by a prorating of countrywide expense20
experience. In promulgating such rules and plans, the commissioner shall give due21
consideration to the ratings systems on file with the commissioner and, in order that22
such rules and plans may be as uniform as is practicable among the several states,23
to the rules and to the form of the plans used for such rating systems in other states.24
No insurer shall be required to record or report its loss experience on a classification25
basis that is inconsistent with the rating system filed by it. The commissioner may26
designate one or more rating organizations or other agencies to assist it in gathering27
such experience and making compilations thereof, and such compilations shall be28 HLS 10RS-153 REENGROSSED
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made available, subject to reasonable rules promulgated by the commissioner, to1
insurers and rating organizations.2
* * *3
§1474. False or misleading information4
No person or organization shall willfully withhold information from or5
knowingly give false or misleading information to the commissioner, any statistical6
agency designated by him, any rating organization, or any insurer which will affect7
the rates or premiums chargeable under this Subpart. A violation of this Section8
shall subject the one guilty of such violation to the penalties provided for violation9
of this Subpart. in this Code.10
* * *11
§1479. Consumer representation; attorney general12
In all proceedings before the commissioner, the attorney general shall have13
the right to represent the interest of the people of the state of Louisiana. The attorney14
general, or his designee, shall have the right to question witnesses, including industry15
or company representatives and all other appearing before the commission,16
commissioner, and shall have the right to issue subpoenas to compel the attendance17
of witnesses and the production of documents.18
* * *19
§1482. Military personnel premium discount; rebates20
A.(1) Beginning on July 1, 2005 and until July 1, 2006, every motor vehicle21
insurer authorized to transact business in this state shall provide to active military22
personnel based in this state a discount of twelve and one-half percent of the23
premium on any automobile liability insurance policy purchased in this state to cover24
motor vehicles owned by such military personnel.25
(2) Beginning on July 1, 2006 , and thereafter, every motor vehicle insurer26
authorized to transact business in this state shall provide to active military personnel27
based in this state a discount of twenty-five percent of the premium on any28 HLS 10RS-153 REENGROSSED
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automobile liability insurance policy purchased in this state to cover motor vehicles1
owned by such military personnel.2
* * *3
§1484. Property, casualty, and liability insurance; premium increase by insurer4
without or with material change in circumstances of insured; notice of5
premium increase6
A.(1) No insurer shall be entitled to an additional premium for a commercial7
property, casualty, or liability insurance policy which has been in effect for more8
than ninety days or for a noncommercial property, casualty, or liability insurance9
policy which has been in effect for more than sixty days when there has been no10
material change in the circumstances of the insured from those stated by the insured11
in his application for the policy. For an insurance company to be entitled to any12
additional premium, the insured must receive a billing notice and either an13
explanation of any premium increase or a statement that asks the insured to contact14
either the insurance company or its agent producer if the insured has any questions15
about the billing notice or the premium increase, within the first sixty days of the16
effective date of the policy. If the company or agent fails to bill the insured within17
the first sixty days of the effective date of the policy, the insured shall not be18
responsible for payment of such additional premium, shall not be penalized for19
nonpayment of that additional premium, and his policy shall not be cancelled for20
failure to pay such additional premium.21
* * *22
Section 2. R.S. 22:1475(C) and (D) and 1480 are hereby repealed in their entirety.23
Section 3. The Louisiana State Law Institute is hereby directed to redesignate R.S.24
22:1486 as R.S. 22:75.25
Section 4. This Act shall become effective on January 1, 2011.26 HLS 10RS-153 REENGROSSED
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Kleckley HB No. 465
Abstract: Provides for technical recodification of certain provisions of the La. Insurance
Code relative to property insurance.
Proposed law makes numerous technical changes to present law, specifically certain
provisions of the La. Insurance Code relative to property insurance. Such changes include
correction of citations, updates of terms and language, reorganization of provisions,
elimination of obsolete or ineffective provisions, such as transition provisions and past
effective dates, and harmonizing of inconsistent provisions.
Proposed law further directs the La. State Law Institute to redesignate R.S. 22:937 as R.S.
22:917.
Effective Jan. 1, 2011.
(Amends R.S. 22:1261, 1262, 1263(A), 1265(A)(1) and (2) and (B), 1266(A)(intro. para) and
(1), (D)(1), (2), (3)(a)(i), (b), (c)(i), and (d)(i) and (iii), and (4), (E)(1)(b) and (3), (I), (K),
and (L), 1267(A), (B)(3), (C)(1)(g), and (D)(3), 1268(A)(intro. para.) and (1), 1269(A),
(B)(1)(intro. para.) and (a)-(e), and (D), 1270(A) and (B)(1)(a) and (b), 1283(A) and (B),
1284(C), 1285, 1288(A), 1290, 1295(1)(a)(i), (c), and (e), (5), and (6)(d), 1311(A), (B),
(D)(intro. para.) and (1) and (E), 1312, 1313(A) and (B), 1314, 1333(A) and (B)(1), (2), and
(3), 1456(A) and (B)(1), 1460(G), 1466(A) and (E), 1468(C), 1470(A), 1471(B), 1472(A)
and (B), 1473(A), 1474, 1479, 1482(A), and 1484(A)(1); Repeals R.S. 22:1475(C) and (D)
and 1480)