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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, 2011 ENROLLED
SENATE BILL NO. 84
BY SENATOR MORRISH
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To amend and reenact R.S. 22:885(B), relative to cancellation by the insured; to provide for2
the calculation of any unearned premium to be returned to the insured; to authorize3
calculating the unearned premium based on a short-rate provision contained in the4
policy filed with and approved by the commissioner; and to provide for related5
matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 22:885(B) is hereby amended and reenacted to read as follows: 8
ยง885. Cancellation by the insured; surrender9
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B. Within thirty days following such cancellation the insurer shall pay to the11
insured or to the person entitled thereto as shown by the insurer's records, any12
unearned portion of any premium paid on the policy as computed on the customary13
pro rata rate, or as unless otherwise specified stated in the a policy that has been14
filed with and approved by the commissioner, and any unearned commission. In15
the event a personal line or commercial line insurance policy is canceled, any16
unearned premium and commission shall be computed on a pro rata basis. If no17
premium has been paid on the policy, the insured shall be liable to the insurer for18
premium for the period during which the policy was in force. Except for surplus line19
insurers, any assessment of a monetary penalty by an insurer against an insured as20
a result of the insured's cancellation prior to the expiration of any policy is21
prohibited. Nothing in this Section shall prohibit an insurer from calculating22 SB NO. 84 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
unearned premium based on a short-rate provision contained in any insurance1
policy that has been filed with and approved by the commissioner.2
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PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: