The original instrument was prepared by Cheryl Cooper. The following digest, which
does not constitute a part of the legislative instrument, was prepared by Linda
Nugent.
DIGEST
SB 185 Reengrossed 2016 Regular Session Morrish
Present law defines a premium finance agreement as an agreement by which an insured or
prospective insured promises to pay to an insurance premium finance company the amount advanced
or to be advanced under the agreement in payment of premiums on an insurance contract.
Proposed law retains present law and allows a premium finance agreement to include a loan
agreement with the policyholder for wind mitigation retrofits to the insured property. Further
requires the homeowners' insurance policy to be issued to a homeowner who has financed the cost
of wind mitigation retrofits with a consumer finance company for the purpose of obtaining wind
mitigation and other credits on his homeowners' insurance policy.
Proposed law provides that if the qualifying homeowners' insurance policy is cancelled, expired, or
is not renewed, the wind mitigation loan agreement shall continue to be administered pursuant to its
terms until paid in full. Further provides that any cancellation, expiration, or nonrenewal of the
insurance policy shall not accelerate the due date of the wind mitigation loan.
Effective August 1, 2016.
(Amends R.S. 9:3550(B))
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Clarified that if the homeowners' insurance policy is cancelled, expired, or not
renewed, the wind mitigation loan agreement shall continue in effect, with no change
in terms or due date, until it is paid in full.