RÉSUMÉ DIGEST
ACT 202 (SB 185) 2016 Regular Session Morrish
Prior law defined 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.
New law retains prior 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.
New 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))