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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010 ENROLLED
SENATE BILL NO. 246
BY SENATOR MCPHERSON AND REPRESENTATI VE THIBAUT
AN ACT1
To amend and reenact R.S. 22:885(B), relative to cancellation of an insurance policy by the2
insured; to provide with respect to the prohibition by the insurer to assess a penalty3
against the insured for cancellation prior to the expiration of any policy; and to4
provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 22:885(B) is hereby amended and reenacted to read as follows: 7
ยง885. Cancellation by the insured; surrender8
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B. Within thirty days following such cancellation the insurer shall pay to the10
insured or to the person entitled thereto as shown by the insurer's records, any11
unearned portion of any premium paid on the policy as computed on the customary12
short pro rata rate or as otherwise specified in the policy, and any unearned13
commission. In the event the automobile a personal line or commercial line14
insurance policy is canceled for nonpayment to the finance company, any unearned15
premium and commission shall be computed on a pro rata basis. If no premium has16
been paid on the policy, the insured shall be liable to the insurer for premium for the17
period during which the policy was in force. Except for surplus line insurers, any18
ACT No. 169 SB NO. 246 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
assessment of a monetary penalty by an insurer against an insured as a result1
of the insured's cancellation prior to the expiration of any policy is prohibited.2
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PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: