HLS 10RS-1090 ORIGINAL
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Regular Session, 2010
HOUSE BILL NO. 706
BY REPRESENTATIVE ABRAMSON
INSURANCE/PROPERTY: Provides relative to application to the Louisiana Citizens
Property Insurance Corporation for coverage and issuance and renewal of a policy
by such corporation
AN ACT1
To amend and reenact R.S. 22:2302(A) and (C) and to enact R.S. 22:2302(E), relative to the2
Louisiana Citizens Property Insurance Corporation; to require such corporation to3
provide certain information to applicants for coverage and policyholders renewing4
coverage by such corporation; to further require such corporation to take certain5
actions upon issuance of a policy; to require the Department of Insurance to provide6
certain information to the corporation; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 22:2302(A) and (C) are hereby amended and reenacted and R.S.9
22:2302(E) is hereby enacted to read as follows: 10
ยง2302. Eligibility; application11
A.(1) Any person having an insurable interest in insurable property and who12
has been denied coverage by one or more insurers authorized to write property13
insurance in this state is entitled to apply to the corporation, directly or through a14
representative, for such coverage through the Coastal Plan or the FAIR Plan, and for15
an inspection of the property. Every such application shall be submitted on forms16
prescribed by the governing board of the corporation and on file with the17
commissioner of insurance which clearly states that the corporation is an insurer of18 HLS 10RS-1090 ORIGINAL
HB NO. 706
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last resort. Every application form shall require that the applicant disclose each1
insurance carrier or carriers who denied property insurance coverage to the applicant.2
(2) Upon receipt of the application form and before it issues a policy, the3
corporation shall send to the applicant a list of all property insurers who are writing4
in his parish.5
* * *6
C.(1) If the corporation determines that the property is insurable, the7
corporation, upon receipt of the premium or such portion thereof as is prescribed for8
either the Coastal Plan or the FAIR Plan, shall cause to be issued the appropriate9
policy of essential property insurance for a term not exceeding one year. Any policy10
issued pursuant to the provisions of this Section shall be renewed annually, upon11
payment of premium due, so long as the property meets the definition of "insurable12
property".13
(2) Upon issuance of a policy, the corporation shall send the policyholder a14
form for his signature offering him the option of being solicited by telephone, mail,15
or any other means for coverage by any property insurer who is writing in his parish.16
(3) Upon renewal of a policy, the corporation shall send to the policyholder17
a list of all property insurers who are writing in his parish.18
* * *19
E. For purposes of Paragraphs (A)(2) and (C)(2) and (3) of this Section, a20
current list of all property insurers other than the corporation who are writing in each21
parish shall be provided to the corporation by the Department of Insurance.22
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)]
Abramson HB No. 706
Abstract: Generally requires the La. Citizens Property Insurance Corporation to inform
both applicants and policyholders upon renewal of all property insurers who are
writing in their respective parishes. HLS 10RS-1090 ORIGINAL
HB NO. 706
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Proposed law provides that, upon receipt of an application form and before it issues a policy,
the Louisiana Citizens Property Insurance Corporation (La. Citizens) shall send to an
applicant a list of all property insurers who are writing in his parish. Further requires that,
upon issuance of a policy, La. Citizens send the policyholder a form for his signature
offering him the option of being solicited by telephone, mail, or any other means for
coverage by any property insurer who is writing in his parish. Also requires La. Citizens to
send a policyholder a list of all property insurers who are writing new business in his parish
upon renewal of his policy. Further provides that a current list of property insurers other than
the corporation who are writing in each parish shall be provided to the La. Citizens by the
Department of Insurance.
(Amends R.S. 22:2302(A) and (C); Adds R.S. 22:2302(E))