HLS 14RS-2390 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 1203
BY REPRESENTATIVE STOKES
INSURANCE CLAIMS: Provide that insurers may not use claims that did not exceed the
insured's deductible to cancel coverage
AN ACT1
To amend and reenact R.S. 22:1265(D) and 1266(L), relative to cancellation of coverage by2
insurers; to provide that insurers may not use an insured's claims that do not exceed3
the insured's deductible to cancel coverage; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 22:1265(D) and 1266(L) are hereby amended and reenacted to read6
as follows: 7
§1265. Property, casualty, and liability insurance policies; cancellation and8
nonrenewal provisions; nonrenewal for rate inadequacy; certain prohibitions9
* * *10
D. No insurer providing property, casualty, or liability insurance shall cancel11
or fail to renew a homeowner's policy of insurance or to increase the policy12
deductible that has been in effect and renewed for more than three years unless based13
on nonpayment of premium, fraud of the insured, a material change in the risk being14
insured, two or more claims within a period of three years, or if continuation of such15
policy endangers the solvency of the insurer. This Subsection shall not apply to an16
insurer that ceases writing homeowner's insurance or to policy deductibles increased17
for all homeowners' policies in the state. For the purposes of this Subsection, an18
incident shall be deemed a claim only when there is a demand for payment by the19
insured or the insured's representative under the terms of the policy. A report of a20 HLS 14RS-2390 ORIGINAL
HB NO. 1203
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are additions.
loss or a question relating to coverage shall not independently establish a claim. As1
used in this Subsection, the phrase "two or more claims within a period of three2
years" shall not include any loss incurred or arising from an "Act of God" incident3
which is due directly to forces of nature and exclusively without human intervention.4
As used in this Subsection, the phrase "two or more claims within a period of three5
years" shall not include a claim in which the insured's loss did not exceed the6
insured's deductible and the insurer did not make a payment either to the insured or7
on behalf of the insured.8
* * *9
§1266. Automobile, property, casualty, and liability insurance policies;10
cancellations11
* * *12
L. (1)(a) No insurer shall cancel an automobile insurance policy for any13
insured solely on the ground that the insured has submitted a single claim under the14
policy for damage incurred or arising from the operation of an automobile.15
(b) No insurer shall include a claim in which the insured's loss did not16
exceed the insured's deductible and the insurer did not make a payment either to the17
insured or on behalf of the insured as part of the insurer's reasons for canceling an18
automobile insurance policy for any insured.19
(2)(a) The provisions of this Subsection shall not prohibit an insurer from20
increasing the cost of the insured's premium based on the number of claims21
submitted under the policy for damage incurred or arising from the operation of an22
automobile, provided that an insurer shall not use a claim to increase the cost of the23
insured's premium when the insured's loss did not exceed the insured's deductible24
and the insurer did not make a payment either to the insured or on behalf of the25
insured.26
(3) For the purposes of this Subsection, an incident shall be deemed a claim27
only when there is a demand for payment under the terms of the policy. A report of28
loss or a question relating to coverage shall not independently establish a claim.29 HLS 14RS-2390 ORIGINAL
HB NO. 1203
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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)]
Stokes HB No. 1203
Abstract: Prohibits insurers from using claims which do not exceed an insured's deductible
as grounds for cancellation of coverage of homeowner's insurance or automobile
insurance.
Present law provides that a homeowner's insurer shall not use two or more claims in a three
year period attributable to an Act of God as grounds for canceling or failing to renew a
homeowner's policy
Proposed law retains present law and additionally provides that an insurer shall not use
claims that did not exceed the insured's deductible and on which the insurer made no
payments as grounds for canceling or failing to renew a homeowner's policy.
Present law provides that an insurer shall not cancel an automobile policy solely on the
grounds that the insured submitted a claim for damage under the policy.
Proposed law retains present law and additionally provides that an insurer shall not use
claims that did not exceed the insured's deductible and on which the insurer made no
payments as grounds for canceling the policy or increasing the insured's premium.
(Amends R.S. 22:1265(D) and 1266(L))