ENROLLED
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
ACT No. 55
Regular Session, 2012
HOUSE BILL NO. 154
BY REPRESENTATIVE THIBAUT
AN ACT1
To amend and reenact R.S. 22:1268(A)(2) and 1287, relative to policy refunds and interest;2
to provide for the crediting of refund amounts against future premiums; to provide3
for the accrual of interest on refunds; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 22:1268(A)(2) and 1287 are hereby amended and reenacted to read6
as follows: 7
§1268. Interest on refund; exception8
A. Any refund due an insured by an insurer writing or delivering insurance9
policies excluding health insurance, life insurance, and annuities in the state because10
of either cancellation, elimination, or reduction of coverage by the insurer or the11
insured, shall be accompanied with interest at the rate of one and one-half percent12
per month of the amount of the refund due the customer, without the benefit of daily13
proration of this monthly interest, after thirty days of either of the following:14
* * *15
(2) Delivery to the insurer's state, regional, or home office, from which such16
refund would issue, of the written request for such cancellation, elimination, or17
reduction. An insurer shall be deemed in compliance with this Section and not18
subject to the further accruement of interest by furnishing timely evidence of the19
mailing of such refund to the last known address of the insured. However, when the20
insured continues to maintain a policy of insurance with the insurer, or an affiliated21
insurer, and the amount of the refund plus interest is twenty-five dollars or less, the22
insurer may credit the amount of the payment against future premiums. The insurer23
shall give written notice to the insured of the credit and the amount at policy renewal.24
* * *25 ENROLLEDHB NO. 154
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
§1287. Overpayments; surplus premium; endorsement credits1
All automobile insurers shall as soon as reasonably possible, but in no event2
later than thirty sixty days, pay to the premium finance company, if the premium has3
been financed or if not financed, to the insured, or the person entitled thereto as4
shown by the automobile insurer's records any overpayment or surplus and5
commission paid or due on the policy. The failure to pay the person owed the money6
within the thirty sixty-day period shall entitle that person to recover monetary7
penalties and interest. In the event the insured is due a credit from an endorsement8
or change to the policy, the return premium and commission shall be computed on9
a pro rata basis. However, when the insured continues to maintain a policy of10
insurance with the insurer, or an affiliated insurer, and the amount of the refund plus11
interest is twenty-five dollars or less, the insurer may credit the amount of the12
payment against future premiums. The insurer shall give written notice to the13
insured of the credit and the amount at policy renewal.14
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: