HLS 11RS-926 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2011
HOUSE BILL NO. 446
BY REPRESENTATIVES LITTLE AND ELLINGTON
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
INSURANCE/LIABILITY: Limits applicability of insurance cancellation requirements
AN ACT1
To amend and reenact R.S. 22:885(D), relative to cancellation of an insurance policy by the2
insured; to provide for limited applicability of cancellation provisions; to exclude3
credit property and casualty insurance from cancellation requirements; and to4
provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 22:885(D) is hereby amended and reenacted to read as follows: 7
ยง885. Cancellation by the insured; surrender8
* * *9
D. This Section shall not apply to life insurance policies , or to annuity10
contracts, policies defined in R.S. 22:47(16)(b), nor to the or contracts provided for11
in Subpart C of Part IV of this Chapter.12
* * *13
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)]
Little HB No. 446
Abstract: Limits applicability of insurance cancellation provisions to exclude credit
property and casualty insurance.
Present law provides that an insured may cancel an insurance policy by written notice to the
insurer and surrender of the insurance policy. Upon cancellation, the insurer shall pay to the
insured any unearned portions that the insured has paid on the premium. HLS 11RS-926 ORIGINAL
HB NO. 446
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Present law provides that cancellation by the insured of any policy susceptible to
cancellation may be done so by written notice to the insurer and surrender of the policy prior
to or on the effective date of such cancellation. In the event the policy or binder has been lost
or destroyed and cannot be surrendered, the insurer may in lieu of such surrender accept and
in good faith rely upon the insured's written statement setting forth the fact of such loss or
destruction.
Present law further provides that within 30 days following the cancellation the insurer shall
pay to the insured or to the person entitled as shown by the insurer's records, any unearned
portion of any premium paid on the policy as computed on the customary pro rata rate or as
otherwise specified in the policy, and any unearned commission. Present law provides that
if no premium has been paid on the policy, the insured shall be liable to the insurer for
premium for the period during which the policy was in force.
Present law excepts life insurance policies, annuity contracts, and contracts provided for in
present law from the cancellation requirements.
Proposed law further excepts credit property and casualty insurance, as defined in present
law, from application of present law. Otherwise retains present law.
(Amends R.S. 22:885(D))