ENROLLED
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ACT No. 703
Regular Session, 2010
HOUSE BILL NO. 465
BY REPRESENTATIVE KLECKLEY
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
Be it enacted by the Legislature of Louisiana:17
Section 1. R.S. 22:1261, 1262, 1263(A), 1265(A)(1) and (2) and (B),18
1266(A)(introductory paragraph) and (1), (D)(1), (2), (3)(a)(i), (b), (c)(i), and (d)(i) and (iii),19
and (4), (E)(1)(b) and (3), (I), (K), and (L), 1267(A), (B)(3), (C)(1)(g), and (D)(3),20
1268(A)(introductory paragraph) and (1), 1269(A), (B)(1)(introductory paragraph) and (a)21
through (e), and (D), 1270(A) and (B)(1)(a) and (b), 1283(A) and (B), 1284(C), 1285,22 ENROLLEDHB NO. 465
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1288(A), 1290, 1295(1)(a)(i), (c), and (e), (5), and (6)(d), 1311(A), (B), (D)(introductory1
paragraph) and (1) and (E), 1312, 1313(A) and (B), 1314, 1333(A) and (B)(1), (2), and (3),2
1456(A) and (B)(1), 1460(G), 1466(A) and (E), 1468(C), 1470(A), 1471(B), 1472(A) and3
(B), 1473(A), 1474, 1479, 1482(A), and 1484(A)(1) are hereby amended and reenacted to4
read as follows: 5
§1261. Renewal of policy; increase in premiums prohibited6
A. Any insurance policy terminating by its terms at a specified expiration7
date and not otherwise renewable may be renewed or extended at the option of the8
insurer. and Such renewal shall be made upon a currently authorized renewal form9
and at the premium rate then required therefor for a specific additional period or10
periods by a certificate or by endorsement of the policy, and without requiring the11
issuance of a new policy.12
B. No insurer shall increase the premium charged for an automobile liability13
insurance policy at the time of renewal for any insured solely on the grounds that the14
insured's policy has lapsed provided if the policy is renewed within ten days after the15
date of termination.16
§1262. Annulment of liability policies 17
No insurance contract insuring against loss or damage through legal liability18
for the bodily injury or death by accident of any individual, or for damage to the19
property of any person, shall be retroactively annulled by any agreement between the20
insurer and insured after the occurrence of any such injury, death, or damage for21
which the insured may be liable, and any such annulment attempted shall be null and22
void.23
§1263. Premises used as polling places; prohibited provisions excluding or limiting24
coverage 25
A. A provision in a liability or other insurance policy which excludes or26
limits coverage solely because premises are being used as a polling place in an27
election shall be null and shall be void and unenforceable as contrary to public28
policy.29
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§1265. Property, casualty, and liability insurance policies; cancellation and1
nonrenewal provisions; nonrenewal for rate inadequacy; certain prohibitions2
A.(1) Any insurer cancelling or refusing to renew a policy providing3
property, casualty, or liability insurance on any property shall, upon written request4
of the policy's named insured, therein, specify in writing the reason or reasons for5
such cancellation or refusal to renew. Such request shall be mailed or delivered to6
the insurer within six months after the effective date of cancellation or expiration,.7
specify in writing the reason or reasons for such cancellation or refusal to renew.8
(2) There shall be no liability on the part of and no cause of action of any9
nature shall arise against any insurer or its agents, producers, employees, or10
representatives for any action taken by them to provide the reasons for cancellation11
as required by this Subsection.12
* * *13
B. There shall be no liability on the part of and no cause of action of any14
nature shall arise against the commissioner of insurance or against any insurer, its15
authorized representative, its agents, producers, its employees, or any firm, person,16
or corporation furnishing to the insurer information as to reasons for cancellation or17
refusal to renew, or in any other communication, oral or written, specifying the18
reasons for cancellation or refusal to renew, or the providing of information19
pertaining thereto, or for statements made or evidence submitted at any hearings20
conducted in connection therewith.21
* * *22
§1266. Automobile, property, casualty, and liability insurance policies;23
cancellations24
A. As used in this Subpart: Part:25
(1) "Policy" means an automobile liability, automobile physical damage, or26
automobile collision policy, or any combination thereof, delivered or issued for27
delivery in this state, or any binder based on such a policy, insuring a single28
individual or husband and wife resident of the same household, as named insured,29 ENROLLEDHB NO. 465
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and under which the insured vehicles therein designated are of the following types1
only:2
(a) A motor private passenger vehicle of the private passenger or station3
wagon type that is not used as a public or livery conveyance for passengers, nor4
rented to others; or.5
(b) Any other four-wheel motor vehicle with a load capacity of fifteen6
hundred pounds or less which is not used in the occupation, profession or business7
of the insured; provided, however, that this shall not apply to:8
(1) to any (i) Any policy issued under an automobile assigned risk plan,. or9
(2) to any (ii) Any policy insuring more than four automobiles,. or10
(3) to any (iii) Any policy covering garage, automobile sales agency, repair11
shop, service station, or public parking place operation hazards.12
* * *13
D.(1) No notice of cancellation of a policy to which Subsection B or C of14
this Section applies shall be effective unless mailed by certified mail or delivered by15
the insurer to the named insured at least thirty days prior to the effective date of16
cancellation; however, when cancellation is for nonpayment of premium at least ten17
days notice of cancellation accompanied by the reason therefor shall be given. In the18
event of nonpayment of premiums for a binder, a ten day ten-day notice of19
cancellation shall be required before the cancellation shall be effective. Notice of20
cancellation for nonpayment of premiums shall not be required to be sent by certified21
mail. Unless the reason accompanies the notice of cancellation, the notice of22
cancellation shall state or be accompanied by a statement that upon written request23
of the named insured, mailed or delivered to the insurer within six months after the24
effective date of cancellation, the insurer will specify the reason for such25
cancellation. This Subsection shall not apply to nonrenewal.26 ENROLLEDHB NO. 465
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(2) There shall be no liability on the part of and no cause of action of any1
nature shall arise against any insurer or its agents, producers, employees, or2
representatives for any action taken by them to provide the reasons for cancellation3
as required by this Subsection.4
(3)(a)(i) Payment of an initial, renewal, or installment insurance premium5
by the insured to an insurer or an insurance agent a producer with a check or other6
negotiable instrument which is returned to the payee by the institution upon which7
it is drawn for insufficient funds available in the account, for lack of credit, for the8
reason the account is closed, for stopped payment, or for any other reason shall be9
deemed grounds for the insurer to cancel the binder or policy from the date the10
premium payment was due for the initial or renewal term, whichever is applicable.11
* * *12
(b)(i) The insurance agent producer shall immediately, and in no case later13
than ten days after the agent producer or premium finance company has received14
notice of the returned check or negotiable instrument, notify the insurer of the receipt15
of the returned check or negotiable instrument.16
(ii) The insurer shall immediately, and in no case later than ten days after the17
agent producer or premium finance company has notified the insurer, notify the18
named insured, by certified mail or delivering to the named insured a written notice19
that the policy is canceled from the date the premium payment was due. The insurer20
shall advise the named insured that the policy shall be reinstated effective from the21
date the premium payment was due for the term of the policy only if the named22
insured or his legal representative presents to the insurer a cashier's check or money23
order for the full amount of the returned check or other negotiable instrument within24
ten days of the date that the notice of cancellation was mailed.25
(c) Upon expiration of the ten-day period, either:26
(i) The insurer shall reinstate the insured's policy, from the date that the27
premium was due, and shall pay directly to the insurance agent producer all funds28 ENROLLEDHB NO. 465
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paid to the insurer by the insured or his legal representative to replace the dishonored1
check or other negotiable instrument; or.2
* * *3
(d)(i) Within ten days of the expiration of the ten-day notice, the insurer shall4
return all funds paid by the insurance agent producer to the insurer on behalf of the5
insured except when an insurance premium finance company has funded an insured's6
policy, the insurer shall return those funds directly to the insurance premium finance7
company. These funds shall be returned by check or other negotiable instrument and8
shall not be placed on the agent's producer's or premium finance company's account9
currents unless the agent producer or premium finance company and the insurer have10
agreed to other methods for handling these funds. Funds received by the insurance11
premium finance company in excess of the amount funded by the insurance premium12
finance company shall be forwarded to the insurance agent. producer.13
* * *14
(iii) When an insured pays the dishonored check by delivery to the agent15
producer of cash or a certified check, the agent producer shall notify the insurer16
within ten days of the payment of the dishonored check.17
* * *18
(4)(a) In the event that an agent, broker, surplus lines insurance broker, or19
insurance solicitor a producer incorrectly states the premium amount for the20
automobile liability policy, the insured may cancel the policy and shall be returned21
the initial payment of premium, including fees and costs, less the prorated cost for22
the period of time of coverage at the initial stated premium, including fees and costs,23
and may cancel the insurance coverage, without penalty or loss of coverage, for the24
period of time that the premium, including fees and costs, was paid.25
(b) When an insurance premium finance company has funded an insured's26
policy and the policy is cancelled, the insurer shall return the funds directly to the27
insurance premium finance company. Any funds received by the insurance premium28
finance company in excess of the amount owed to the insurance premium finance29
company by the insured shall be forwarded to the insurance agent producer to be30 ENROLLEDHB NO. 465
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returned to the insured. The insurer shall not withhold any more funds from the1
insurance premium finance company than would otherwise be withheld from the2
insured. No insurer shall assess a service charge for this transaction.3
E.(1) No insurer shall fail to renew a policy unless it shall mail or deliver to4
the named insured, at the address shown in the policy, at least twenty days advance5
notice of its intention not to renew. This Subsection shall not apply:6
* * *7
(b) In case of nonpayment of premium; provided that, however,8
notwithstanding the failure of an insurer to comply with this Subsection, the policy9
shall terminate on the effective date of any other insurance policy with respect to any10
automobile designated in both policies.11
* * *12
(3) Upon the written request of the named insured, the insurer shall provide13
to the insured in writing the reasons for nonrenewal of the policy. There shall be no14
liability on the part of and no cause of action of any nature shall arise against any15
insurer or its agents, producers, employees, or representatives for any action taken16
by them to provide the reasons for nonrenewal as required by this Paragraph.17
* * *18
I. There shall be no liability on the part of and no cause of action of any19
nature shall arise against the commissioner of insurance or against any insurer, its20
authorized representative, its agents, producers, its employees, or any firm, person,21
or corporation furnishing to the insurer information as to reasons for cancellation, for22
any statement made by any of them in any written notice of cancellation, or in any23
other communication, oral or written, specifying the reasons for cancellation, or the24
providing of information pertaining thereto, or for statements made or evidence25
submitted at any hearings conducted in connection therewith.26
* * *27
K. No insurer shall cancel an automobile insurance policy written or issued28
for delivery in this state belonging to an insured over the age of sixty-five based29
upon the age of the insured provided the insured is mentally and physically capable30 ENROLLEDHB NO. 465
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of driving an automobile and possesses a valid Louisiana operator's license issued1
by the office of motor vehicles in of the Louisiana Department of Public Safety and2
Corrections.3
L. No insurer shall cancel an automobile insurance policy for any insured4
solely on the ground that the insured has submitted a single claim under his or her5
the policy for damage incurred or arising from the operation of an automobile. The6
provisions of this Subsection shall not prohibit an insurer from increasing the cost7
of the insured's premium based on the number of claims submitted under his or her8
the policy for damage incurred or arising from the operation of an automobile. For9
the purposes of this Subsection, an incident shall be deemed a claim only when there10
is a demand for payment under the terms of the policy. A report of loss or a question11
relating to coverage shall not independently establish a claim.12
§1267. Commercial insurance; cancellation and renewal13
A. This Section shall apply to commercial property insurance policies and14
commercial multi-peril insurance policies;, workers' compensation insurance,15
professional errors and omissions policies, commercial liability insurance policies,16
other than aviation, and employers' liability insurance policies. It shall not apply to17
reinsurance, excess and surplus lines insurance, residual market risks, multistate18
location risks, policies subject to retrospective rating plans, excess or umbrella19
policies, and such other policies that are exempted by the commissioner of insurance.20
B. For the purposes of this Section, the following terms shall mean:21
* * *22
(3) "Nonpayment of premium" means the failure or inability of the named23
insured to discharge any obligation in connection with the payment of premiums on24
a policy of insurance subject to this regulation, whether such payments are payable25
directly to the insurer or its agent producer or indirectly payable under a premium26
finance plan or extension of credit.27
* * *28
C.(1) If coverage has not been in effect for sixty days and the policy is not29
a renewal, cancellation shall be effected by mailing or delivering a written notice to30 ENROLLEDHB NO. 465
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the first-named insured at the mailing address shown on the policy at least sixty days1
before the cancellation effective date, except in cases where cancellation is based on2
nonpayment of premium. Notice of cancellation based on nonpayment of premium3
shall be mailed or delivered at least ten days prior to the effective date of4
cancellation. After coverage has been in effect for more than sixty days or after the5
effective date of a renewal policy, no insurer shall cancel a policy unless the6
cancellation is based on at least one of the following reasons:7
* * *8
(g) Such other Other reasons that are approved by the commissioner of9
insurance.10
* * *11
D.12
* * *13
(3) If an insurer provides the notice described in R.S. 22:1267(D) Paragraph14
(1) of this Subsection and thereafter the insurer extends the policy for ninety days or15
less, an additional notice of nonrenewal is not required with respect to the extension.16
* * *17
§1268. Interest on refund; exception 18
A. Any refund due an insured by an insurer writing or delivering insurance19
policies excluding health and insurance, life insurance, and annuities in the state20
because of either cancellation, elimination, or reduction of coverage by the insurer21
or the insured, shall be accompanied with interest at the rate of one and one-half22
percent per month of the amount of the refund due the customer, without the benefit23
of daily proration of this monthly interest, after thirty days of either of the following:24
(1) The delivery to the insured of the written notice of such cancellation,25
elimination, or reduction;. 26
* * *27 ENROLLEDHB NO. 465
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§1269. Liability policy; insolvency or bankruptcy of insured and inability to effect1
service of citation or other process; direct action against insurer2
A. No policy or contract of liability insurance shall be issued or delivered in3
this state, unless it contains provisions to the effect that the insolvency or bankruptcy4
of the insured shall not release the insurer from the payment of damages for injuries5
sustained or loss occasioned during the existence of the policy, and any judgment6
which may be rendered against the insured for which the insurer is liable which shall7
have become executory, shall be deemed prima facie evidence of the insolvency of8
the insured, and an action may thereafter be maintained within the terms and limits9
of the policy by the injured person, or his or her survivors, mentioned in Civil Code10
Art. 2315.1, or heirs against the insurer.11
B.(1) The injured person or his or her survivors or heirs mentioned in12
Subsection A, of this Section, at their option, shall have a right of direct action13
against the insurer within the terms and limits of the policy; and, such action may be14
brought against the insurer alone, or against both the insured and insurer jointly and15
in solido, in the parish in which the accident or injury occurred or in the parish in16
which an action could be brought against either the insured or the insurer under the17
general rules of venue prescribed by Code of Civil Procedure Art. 42 only; However18
however, such action may be brought against the insurer alone only when : at least19
one of the following applies:20
(a) The insured has been adjudged a bankrupt by a court of competent21
jurisdiction or when proceedings to adjudge an insured a bankrupt have been22
commenced before a court of competent jurisdiction;. 23
(b) The insured is insolvent;. 24
(c) Service of citation or other process cannot be made on the insured;. 25
(d) When the cause of action is for damages as a result of an offense or26
quasi-offense between children and their parents or between married persons;.27
(e) When the insurer is an uninsured motorist carrier; or.28
* * *29 ENROLLEDHB NO. 465
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D. It is also the intent of this Section that all liability policies within their1
terms and limits are executed for the benefit of all injured persons and their survivors2
or heirs to whom the insured is liable; and, that it is the purpose of all liability3
policies to give protection and coverage to all insureds, whether they are named4
insured or additional insureds under the omnibus clause, for any legal liability said5
the insured may have as or for a tort-feasor tortfeasor within the terms and limits of6
said the policy.7
§1270. Personal property; specific coverage; valuation; exemptions 8
A. In any case in which a policy includes coverage for loss of or damage to9
personal property of the insured, from whatever cause, if the insurer places a10
valuation upon the specific item of covered property and uses such valuation for11
purposes of determining the premium charge to be made under the policy, the insurer12
shall compute any covered loss of or damage to such property which occurs during13
the term of the policy at such valuation without deduction or offset, unless a different14
method is to be used in the computation of loss, in which latter case, the policy, and15
any application therefor, for the policy, shall set forth in type of prominent size, the16
actual method of such loss computation by the insurer.17
B.(1) The provisions of this Section shall not apply to any of the following:18
(a) Insurance of the kind referred to in R.S. 22:47(3) when the coverage19
pertains to land vehicles;. 20
(b) Any property used primarily for business purposes ; or. 21
* * *22
§1283. Proof of motorcycle endorsement23
A. Each person who makes an application for issuance of a policy of24
insurance covering a motorcycle shall provide proof of the appropriate license25
endorsement required by R.S. 32:408(C). Such proof shall be provided to the insurer26
or its agent producer at the time of application for such policy. If the policy of27
insurance is issued by an insurer which that does not maintain an office in this state,28
then the person may submit a sworn affidavit that he has the proper license29
endorsement to the insurer.30 ENROLLEDHB NO. 465
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B. No insurer or agent producer of an insurer shall issue a policy of1
insurance which that will cover a motorcycle unless the applicant has provided proof2
of the appropriate license endorsement required by R.S. 32:408(C).3
* * *4
§1284. Motor vehicle insurance; consideration of nonfault incidents prohibited 5
* * *6
C. Any insurer who violates this Section shall refund to the insured person7
the amount of premium which was paid which exceeded the premium which would8
have been charged if the insurer had complied with this Section, together with a9
penalty payment in amount equal to triple the amount of the refund or one thousand10
dollars, whichever is greater. The insured shall also be entitled to attorneys attorney11
fees should he prevail.12
* * *13
§1285. Automobile insurance policies; refusal to issue or renew; age discrimination14
No insurer shall refuse to issue or renew an automobile insurance policy to15
any person over the age of sixty-five based upon the age of the insured provided the16
insured is mentally and physically capable of driving an automobile and possesses17
a valid Louisiana operator's license issued by the office of motor vehicles in of the18
Louisiana Department of Public Safety and Corrections.19
* * *20
§1288. Discrimination in automobile liability insurance prohibited21
A. No insurer shall refuse to issue or renew, increase the premium, or cancel22
an automobile insurance policy solely because the insured is deaf or hard of hearing,23
provided such person is mentally and physically capable of driving an automobile24
and possesses a valid Louisiana operator's license issued by the office of motor25
vehicles in of the Louisiana Department of Public Safety and Corrections.26
* * *27 ENROLLEDHB NO. 465
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§1290. Motor vehicle liability policy 1
No settlement made under a motor vehicle liability insurance policy of for2
a claim against any insured thereunder arising from any accident or other event3
insured against for damage to or destruction of property owned by another person4
shall be construed as an admission of liability by the insured, or the insurer's5
recognition of such liability, with respect to any other claim arising from the same6
accident or event.7
* * *8
§1295. Uninsured motorist coverage9
The following provisions shall govern the issuance of uninsured motorist10
coverage in this state:11
(1)(a)(i) No automobile liability insurance covering liability arising out of12
the ownership, maintenance, or use of any motor vehicle shall be delivered or issued13
for delivery in this state with respect to any motor vehicle designed for use on public14
highways and required to be registered in this state or as provided in this Section15
unless coverage is provided therein or supplemental thereto, in not less than the16
limits of bodily injury liability provided by the policy, under provisions filed with17
and approved by the commissioner of insurance, for the protection of persons insured18
thereunder who are legally entitled to recover nonpunitive damages from owners or19
operators of uninsured or underinsured motor vehicles because of bodily injury,20
sickness, or disease, including death resulting therefrom; however, the coverage21
required under this Section is not applicable when any insured named in the policy22
either rejects coverage, selects lower limits, or selects economic-only coverage, in23
the manner provided in Item (1)(a)(ii) of this Section. In no event shall the policy24
limits of an uninsured motorist policy be less than the minimum liability limits25
required under R.S. 32:900, unless economic-only coverage is selected as authorized26
herein. in this Section. Such coverage need not be provided in or supplemental to a27
renewal, reinstatement, or substitute policy when the named insured has rejected the28
coverage or selected lower limits in connection with a policy previously issued to29
him by the same insurer or any of its affiliates. The coverage provided under this30 ENROLLEDHB NO. 465
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Section may exclude coverage for punitive or exemplary damages by the terms of1
the policy or contract. Insurers may also make available, at a reduced premium, the2
coverage provided under this Section with an exclusion for all noneconomic loss.3
This coverage shall be known as "economic-only" uninsured motorist coverage.4
Noneconomic loss means any loss other than economic loss and includes but is not5
limited to pain, suffering, inconvenience, mental anguish, and other noneconomic6
damages otherwise recoverable under the laws of this state.7
* * *8
(c)(i) If the insured has any limits of uninsured motorist coverage in a policy9
of automobile liability insurance, in accordance with the terms of Subparagraph10
(1)(a) of this Section, then such limits of liability shall not be increased because of11
multiple motor vehicles covered under said such policy of insurance, and such limits12
of uninsured motorist coverage shall not be increased when the insured has insurance13
available to him under more than one uninsured motorist coverage provision or14
policy; however, with respect to other insurance available, the policy of insurance15
or endorsement shall provide the following: (ii) With with respect to bodily injury16
to an injured party while occupying an automobile not owned by said injured party,17
resident spouse, or resident relative, and the following priorities of recovery under18
uninsured motorist coverage shall apply:19
(aa) (i) The uninsured motorist coverage on the vehicle in which the injured20
party was an occupant is primary;.21
(bb) (ii) Should that primary uninsured motorist coverage be exhausted due22
to the extent of damages, then the injured occupant may recover as excess from other23
uninsured motorist coverage available to him. In no instance shall more than one24
coverage from more than one uninsured motorist policy be available as excess over25
and above the primary coverage available to the injured occupant.26
* * *27 ENROLLEDHB NO. 465
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(e) The uninsured motorist coverage does not apply to bodily injury,1
sickness, or disease, including the resulting death of an insured, resulting therefrom,2
while occupying a motor vehicle owned by the insured if such motor vehicle is not3
described in the policy under which a claim is made, or is not a newly acquired or4
replacement motor vehicle covered under the terms of the policy. This provision5
shall not apply to uninsured motorist coverage provided in a policy that does not6
describe specific motor vehicles.7
* * *8
(5) The coverage required under this Section may include provisions for the9
submission of claims by the assured to arbitration; provided, however, that the10
submission to arbitration shall be optional with the assured, insured, shall not deprive11
the assured insured of his right to bring action against the insurer to recover any12
sums due him under the terms of the policy, and shall not purport to deprive the13
courts of this state of jurisdiction of actions against the insurer.14
(6) In any action to enforce a claim under the uninsured motorist provisions15
of an automobile liability policy the following shall be admissible as prima facie16
proof that the owner and operator of the vehicle involved did not have automobile17
liability insurance in effect on the date of the accident in question:18
* * *19
(d) The effect of the prima facie evidence referred to in Subparagraphs (a),20
(b), and (c) above of this Paragraph is to shift the burden of proof from the party or21
parties alleging the uninsured status of the vehicle in question to their uninsured22
motorist insurer.23
* * *24
§1311. Fire insurance contract; standard provisions; variations25
A. The printed form of a policy of fire insurance, as set forth in Subsection26
F of this Section, shall be known and designated as the "standard fire insurance27
policy of the State of Louisiana."28 ENROLLEDHB NO. 465
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B.(1) No policy or contract of fire insurance shall be made, issued, or1
delivered by any insurer, or by any agent producer or representative thereof, on any2
property in this state, unless it shall conform as to all provisions, stipulations,3
agreements, and conditions, with such form of policy. as provided in this Subpart.4
(2) There shall be printed at the head of said the policy the name of the5
insurer or insurers issuing the policy; the location of the home office thereof; a6
statement whether said insurer or insurers are stock or mutual corporations or are7
reciprocal insurers or Lloyds underwriters or, if organized under a special charter,8
a statement of such fact and the plan under which such insurer operates in this state;9
and there may be added thereto such device or devices as the insurer or insurers10
issuing said policy shall desire.11
(3) The standard fire insurance policy provided for herein need not be used12
for effecting reinsurance between insurers.13
(4) If the policy is issued by a mutual, co-operative cooperative, or reciprocal14
insurer having special regulations with respect to the payment by the policyholder15
of assessments, such regulations shall be printed upon the policy, and any such16
insurer may print upon the policy such regulations as may be appropriate to or17
required by its home state or its form of organization.18
* * *19
D. Two or more insurers authorized to do in this state engage in the business20
of fire insurance, in this state may, with the approval of the commissioner of21
insurance, issue a combination standard form of fire insurance policy which shall22
contain the following provisions:23
(1) A provision substantially to the effect that the insurers executing such24
policy shall be severally liable for the full amount of any loss or damage, according25
to the terms of the policy, or for specified percentages or amounts thereof,26
aggregating the full amount of such insurance under such policy.27
* * *28 ENROLLEDHB NO. 465
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E.(1) Appropriate forms of other contracts or endorsements whereby the1
interest in the property described in such policy shall be insured against one or more2
of the perils which the insurer is empowered to assume, in addition to the perils3
covered by said standard fire insurance policy, may be approved and may, unless at4
any time disapproved by the commissioner of insurance, be used in connection with5
a standard fire insurance policy. and such Such forms may contain provisions and6
stipulations inconsistent with the standard policy if applicable only to such other7
perils. The first page of the policy may, in a form approved by the commissioner,8
be rearranged to provide space for the listing of amounts of insurance, rates and9
premiums for the basic coverages insured under the standard form of policy and for10
additional coverages or perils insured under endorsements attached, and such other11
data as may be conveniently included for duplication on daily reports for office12
records.13
(2)(a) Any policy or contract otherwise subject to the provisions of14
Subsections A and B hereof, of this Section, which includes either on an unspecified15
basis as to the coverage or for a single premium, coverage against the peril of fire16
and substantial coverage against other perils need not comply with the provisions of17
Subsections A and B hereof, of this Section provided each of the following apply:18
(1) (i) such policy or contract shall afford coverage, with respect to the peril of fire,19
not less than the coverage afforded by said standard fire policy ,; (2) (ii) the20
provisions in relation to mortgagee interests and obligations in said standard fire21
policy may be incorporated therein without change,; (3) (iii) such policy or contract22
is complete as to all of its terms without reference to the standard form of fire23
insurance policy or any other policy,; and (4) (iv) the commissioner is satisfied that24
such policy or contract complies with the provisions hereof.25
(b) The pages of the Standard Fire Insurance Policy may be renumbered and26
the format rearranged for convenience in the preparation of individual contracts, and27
to provide space for the listing of rates and premiums for coverages insured28 ENROLLEDHB NO. 465
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thereunder or under endorsement attached or printed thereon, and such other data as1
may be conveniently included for duplication on daily reports for office records.2
* * *3
§1312. Forms to be furnished provided4
Upon receiving notice of loss from the insured, the insurer on the policy or5
contract of fire insurance shall furnish provide within thirty days to the insured a6
form suitable for filing a proof of loss and shall advise the insured that he is required7
under the terms of the policy or contract of fire insurance to submit a proof of loss.8
§1313. Fire insurance contract; standard provisions; variations9
A. Notwithstanding the requirements of R.S. 22:1311 concerning the use of10
the standard fire policy, provisions, the use of such form shall not be required in the11
event the policy forms covering the peril of fire are equivalent to or exceed the12
provisions of the standard fire policy.13
B. In the event that the policy forms used are not equivalent to or do not14
exceed the terms of the standard fire policy, all of the provisions of the standard fire15
policy shall become a part of the policy by physically attaching the standard fire16
policy. thereto.17
* * *18
§1314. Breach of warranties and conditions of fire policies and applications therefor19
A. No policy of fire insurance issued by any insurer on property in this state20
shall hereafter be declared void by the insurer for the breach of any representation,21
warranty, or condition contained in the said such policy or in the application therefor.22
Such breach shall not avail allow the insurer to avoid liability unless such breach: (1)23
shall exist exists at the time of the loss, and be either such a breach as would increase24
either the moral or physical hazard under the policy ,; or (2) shall be such a breach25
as would be a violation of a warranty or condition requiring the insurer to take and26
keep inventories and books showing a record of his business. 27 ENROLLEDHB NO. 465
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B. Notwithstanding the above provisions of Subsection A of this Section,1
such a breach shall not afford a defense to a suit on the policy if the fact or facts2
constituting such a breach existing at the time of the issuance of the policy and were,3
at such time, known to the insurer or to any of his or its officers or agents, or if the4
fact or facts constituting such a breach existed at the time of the loss and were, at5
such time, known to the insurer or to any of his or its officers or agents, except in6
case of fraud on the part of such officer or agent or the insured, or collusion between7
such officer or agent and the insured.8
* * *9
§1333. Homeowner's insurance; insurer's nonrenewal without cause; inclusion in10
insured's file prohibited; certain prohibitions11
A. Whenever a policy of homeowner's insurance is not renewed by the12
insurer and such nonrenewal is without cause, the fact of such nonrenewal shall not13
be retained in the insured's file with that insurer. Such nonrenewal shall not be14
considered a cancellation or nonrenewal for cause. The insurer shall not utilize such15
nonrenewal as a reason for an increase in the insured's rate or premium for16
equivalent coverage to that which was not renewed.17
B. In this Section, nonrenewal "without cause" shall not include nonrenewal18
by the insurer for any of the following reasons:19
(1) Nonrenewal at the request of the insured;.20
(2) Failure of the insured to pay the agreed premium ;.21
(3) Fraud on the part of the insured; or.22
* * *23
§1456. Scope of rate regulation24
A. This Subpart applies to fire, marine and transportation, (inland marine),25
title insurance, and casualty insurance risks or operations in this state.26
B.(1) For the purpose of this Subpart, fire insurance includes insurance27
coverage as defined in R.S. 22:47(10), (11)(b), and (12), and such other coverages28
as are usually written by fire insurers other than motor vehicle insurance; marine and29
transportation (inland marine) insurance includes personal floater insurance and the30 ENROLLEDHB NO. 465
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kinds of insurance defined in R.S. 22:6(13) R.S. 22:47(13) and such other inland1
marine coverages as may be so established by interpretation, by ruling of the2
commissioner of insurance, or by general customs of the business; title insurance3
includes the kind of insurance coverage as defined in R.S. 22:47(9),; and casualty4
insurance includes the kinds of casualty insurance defined in R.S. 22:47(3), (4), (5),5
and (6), except personal property floater, R.S. 22:47(7), (8), and (11)(a), and such6
other coverages as are usually written by casualty insurers.7
* * *8
§1460. Fire insurance rates; the Property Insurance Association of Louisiana9
* * *10
G.(1) Debit fire insurance policies are defined as policies issued by11
companies which write fire insurance through debit agents operating on the debit12
agency system and which meet the other requirements of this section. Section. The13
method of premium payment for debit fire insurance in the State state of Louisiana14
shall be only on a monthly or more frequent basis from the date this act Act becomes15
effective. No debit insurance policy shall be issued for an annual or less frequent16
premium.17
(2) Rates for debit fire insurance and allied lines shall be filed directly with18
the commissioner of insurance and shall be approved and supervised as to both initial19
filings and requested changes only by the commissioner. In all other respects, the20
commissioner of insurance shall have sole supervision and regulation of the21
operation of debit fire insurance and allied lines in the State state of Louisiana, such22
insurers being specifically exempt from the assessments levied by the association.23
* * *24
§1466. Other rating organizations25
A. A corporation, an unincorporated association, a partnership, or an26
individual, whether located within or outside this state, may make application to the27
commissioner of insurance for license as a rating organization for such kinds of28
insurance, or subdivision, or class of risk, or a part or combination thereof as are29
specified in its application and shall file therewith: the following: (1) a copy of its30 ENROLLEDHB NO. 465
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constitution, its articles of agreement or association, or its certificate of1
incorporation, and of its bylaws, rules, and regulations governing the conduct of its2
business,; (2) a list of its members and subscribers,; (3) the name and address of a3
resident of this state upon whom notices or orders of the commissioner or a division4
or process affecting such rating organization may be served,; and (4) a statement of5
its qualifications as a rating organization. If the commissioner finds that the6
applicant is competent, trustworthy, and otherwise qualified to act as a rating7
organization and that the public interest would be served by issuing a license to such8
organization, not heretofore otherwise licensed, for a kind or class of insurance9
subject to this Subpart, and that its constitution, articles of agreement or association,10
or certificate of incorporation, and its bylaws, rules, and regulations governing the11
conduct of its business conform to the requirements of law, the commissioner shall12
issue a license specifying the kinds of insurance, or subdivision, or class of risk, or13
part or combination thereof for which the applicant is authorized to act as a rating14
organization. Every such application shall be granted or denied in whole or in part15
by the commissioner within sixty days of the date of its filing. with it. Licenses16
issued pursuant to this Section shall remain in effect for three years unless sooner17
suspended or revoked by the commissioner. Licenses issued pursuant to this Section18
may be suspended or revoked by the commissioner in accordance and compliance19
with R.S. 49:961 in the event the rating organization ceases to meet the requirements20
of this Subsection. Every rating organization shall notify the commissioner promptly21
of every change in: the following: (1) its constitution, its articles of agreement, or22
association, or its certificate of incorporation, and its bylaws, rules, and regulations23
governing the conduct of its business,; (2) its list of members and subscribers,; and24
(3) the name and address of the resident of this state designated by it upon whom25
notices or orders of the commissioner or process affecting such rating organization26
may be served.27
* * *28
E. Any rating organization may provide for the examination of policies, daily29
reports, binders, renewal certificates, endorsements, or other evidences of insurance,30 ENROLLEDHB NO. 465
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or the cancellation thereof, and may make reasonable rules governing their1
submission. Such rules shall contain a provision that in the event any insurer does2
not within sixty days furnish satisfactory evidence to the rating organization of the3
correction of any error or omission previously called to its attention by the rating4
organization it shall be the duty of the rating organization to notify the commissioner5
of insurance. thereof. No such notification need shall be furnished to the6
commissioner unless it is apparent that if a public hearing will be required. All7
information so submitted for examination shall be confidential.8
* * *9
§1468. Deviations10
* * *11
C. In considering the application for permission to file such deviation in the12
case of fire, marine, and inland marine insurance, the commissioner of insurance13
shall give consideration to the available statistics and the applicable principles for14
ratemaking as provided in R.S. 22:1457. 1464. The commissioner shall approve such15
application if the rate sought to be used meets the requirements of R.S. 22:1457(3).16
1464(A)(3).17
* * *18
§1470. Information to be furnished provided insureds; hearings and appeals of19
insureds20
A. Every rating organization and every insurer which makes its own rates21
shall, within a reasonable time after receiving a written request therefor and upon22
payment of such reasonable charge as it may make, furnish from an insured, provide23
to any insured affected by a rate made by it, or to the authorized representative of24
such insured, all pertinent information as to such rate. The insurer may charge a25
reasonable rate to provide the information. 26
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§1471. Advisory organizations1
* * *2
B. Every advisory organization shall file with the commissioner of insurance3
each of the following: (1) a copy of its constitution, its articles of agreement or4
association, or its certificate of incorporation and of its bylaws, rules, and regulations5
governing its activities,. (2) a list of its members,. (3) the name and address of a6
resident of this state upon whom notices or orders of the commissioner, or process7
issued at the direction of the commissioner may be served,. and (4) an agreement that8
the commissioner may examine such advisory organization in accordance with the9
provisions of Chapter 8 of this Title.10
* * *11
§1472. Joint underwriting or joint reinsurance12
A. Every group, association, or other organization of insurers which engages13
in joint underwriting or joint reinsurance, shall be subject to regulations with respect14
thereto and penalties as herein provided, subject, however, with respect to joint15
underwriting, to all other provisions of this Subpart, and with respect to joint16
reinsurance, to by this Subpart. Joint reinsurance shall also be subject to the17
provisions of R.S. 22:1474, and Chapter 8 of this Title,. and to the penalties provided18
for violation of this Subpart.19
B. If, after a hearing, the commissioner of insurance finds that any activity20
or practice of any such group, association, or other organization is unfair , or21
unreasonable, or otherwise inconsistent with the provisions of this Subpart, the22
commissioner shall issue a written order specifying in what respects such activity or23
practice is unfair, or unreasonable, or otherwise inconsistent with the provisions of24
this Subpart, and requiring shall require the discontinuance of such activity or25
practice.26
* * *27
§1473. Rate administration28
A. Recording and reporting of loss and expense experience. The29
commissioner of insurance shall promulgate reasonable rules and statistical plans,30 ENROLLEDHB NO. 465
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reasonably adapted to each of the rating systems on file with the commissioner,1
which may be modified from time to time and which shall be used thereafter by each2
insurer in the recording and reporting of its loss and countrywide expense3
experience, in order that the experience of all insurers may be made available at least4
annually in such form and detail as may be necessary to aid the commissioner in5
determining whether rating systems comply with the standards set forth in R.S.6
22:1457. 1454. Such rules and plans may also provide for the recording and7
reporting of expense experience items which are specially applicable to this state and8
are not susceptible of determination by a prorating of countrywide expense9
experience. In promulgating such rules and plans, the commissioner shall give due10
consideration to the ratings systems on file with the commissioner and, in order that11
such rules and plans may be as uniform as is practicable among the several states,12
to the rules and to the form of the plans used for such rating systems in other states.13
No insurer shall be required to record or report its loss experience on a classification14
basis that is inconsistent with the rating system filed by it. The commissioner may15
designate one or more rating organizations or other agencies to assist it in gathering16
such experience and making compilations thereof, and such compilations shall be17
made available, subject to reasonable rules promulgated by the commissioner, to18
insurers and rating organizations.19
* * *20
§1474. False or misleading information21
No person or organization shall willfully withhold information from or22
knowingly give false or misleading information to the commissioner, any statistical23
agency designated by him, any rating organization, or any insurer which will affect24
the rates or premiums chargeable under this Subpart. A violation of this Section25
shall subject the one guilty of such violation to the penalties provided for violation26
of this Subpart. in this Code.27
* * *28 ENROLLEDHB NO. 465
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§1479. Consumer representation; attorney general1
In all proceedings before the commissioner, the attorney general shall have2
the right to represent the interest of the people of the state of Louisiana. The attorney3
general, or his designee, shall have the right to question witnesses, including industry4
or company representatives and all other appearing before the commission,5
commissioner, and shall have the right to issue subpoenas to compel the attendance6
of witnesses and the production of documents.7
* * *8
§1482. Military personnel premium discount; rebates9
A.(1) Beginning on July 1, 2005 and until July 1, 2006, every motor vehicle10
insurer authorized to transact business in this state shall provide to active military11
personnel based in this state a discount of twelve and one-half percent of the12
premium on any automobile liability insurance policy purchased in this state to cover13
motor vehicles owned by such military personnel.14
(2) Beginning on July 1, 2006 , and thereafter, every motor vehicle insurer15
authorized to transact business in this state shall provide to active military personnel16
based in this state a discount of twenty-five percent of the premium on any17
automobile liability insurance policy purchased in this state to cover motor vehicles18
owned by such military personnel.19
* * *20
§1484. Property, casualty, and liability insurance; premium increase by insurer21
without or with material change in circumstances of insured; notice of22
premium increase23
A.(1) No insurer shall be entitled to an additional premium for a commercial24
property, casualty, or liability insurance policy which has been in effect for more25
than ninety days or for a noncommercial property, casualty, or liability insurance26
policy which has been in effect for more than sixty days when there has been no27
material change in the circumstances of the insured from those stated by the insured28
in his application for the policy. For an insurance company to be entitled to any29
additional premium, the insured must receive a billing notice and either an30 ENROLLEDHB NO. 465
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explanation of any premium increase or a statement that asks the insured to contact1
either the insurance company or its agent producer if the insured has any questions2
about the billing notice or the premium increase, within the first sixty days of the3
effective date of the policy. If the company or agent fails to bill the insured within4
the first sixty days of the effective date of the policy, the insured shall not be5
responsible for payment of such additional premium, shall not be penalized for6
nonpayment of that additional premium, and his policy shall not be cancelled for7
failure to pay such additional premium.8
* * *9
Section 2. R.S. 22:1475(C) and (D) and 1480 are hereby repealed in their entirety.10
Section 3. The Louisiana State Law Institute is hereby directed to redesignate R.S.11
22:1486 as R.S. 22:75.12
Section 4. This Act shall become effective on January 1, 2011.13
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: