SLS 20RS-819 ORIGINAL
2020 Regular Session
SENATE BILL NO. 477
BY SENATOR WARD
INSURANCE POLICIES. Provides relative to business interruption insurance. (gov sig)
1 AN ACT
2 To enact R.S. 22:1272 and 1273, relative to property insurance; to require insurers to cover
3 certain claims related to business interruption; to provide for required notice; and to
4 provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 22:1272 is hereby enacted to read as follows:
7 §1272. Business interruption; 2020 pandemic
8 A. Notwithstanding any other provision of law to the contrary, every
9 policy of insurance in force in this state on March 11, 2020, and thereafter
10 insuring against loss or damage to property that includes the loss of use, loss of
11 occupancy, or business interruption shall be construed to include among the
12 perils covered under that policy, coverage for business interruption due to
13 imminent threat posed by COVID-19 as provided in Proclamation Number 25
14 JBE 2020, declaring the existence of a statewide public health emergency.
15 B. The coverage required by this Section shall indemnify the insured,
16 subject to the limits of the policy, for any loss of business or business
17 interruption for the duration of the declared state of emergency.
Page 1 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 477
SLS 20RS-819 ORIGINAL
1 C. The provisions of this Section shall be applied retroactively to March
2 11, 2020, and shall apply to losses incurred during the declared state of
3 emergency.
4 Section 2. R.S. 22:1273 is hereby enacted to read as follows:
5 §1273. Business interruption insurance; notice of exclusions
6 A. Every policy of insurance covering business interruption delivered
7 or issued for delivery in this state on and after August 1, 2020, shall include a
8 notice of all exclusions on a form prescribed by the commissioner of insurance.
9 The form shall be provided by the insurer and signed by the named insured or
10 his legal representative.
11 B. The signed form shall be conclusively presumed to become a part of
12 the policy or contract when issued and delivered, irrespective of whether
13 physically attached thereto. A properly completed and signed form creates a
14 rebuttable presumption that the insured knowingly contracted for coverage
15 with the stated exclusions. The form signed by the insured or his legal
16 representative which initially accepts coverage with the exclusions shall remain
17 valid for the life of the policy and shall not require the completion of a new form
18 when a renewal, reinstatement, substitute, or amended policy is issued to the
19 same named insured by the same insurer or any of its affiliates.
20 C. Any change to an existing policy, regardless of whether the change
21 creates new coverage, does not create a new policy and does not require the
22 completion of a new form. For the purpose of this Section, a new policy shall
23 mean an original contract of insurance which an insured enters into through the
24 completion of an application on the form required by the insurer.
25 D. The requirements of this Section shall apply to any property
26 insurance covering any business interruption which occurs in this state and
27 involves a Louisiana business.
28 Section 3. This Act shall become effective upon signature by the governor or, if not
29 signed by the governor, upon expiration of the time for bills to become law without signature
Page 2 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 477
SLS 20RS-819 ORIGINAL
1 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
2 vetoed by the governor and subsequently approved by the legislature, this Act shall become
3 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by LG Sullivan.
DIGEST
SB 477 Original 2020 Regular Session Ward
Proposed law requires every policy of insurance in force in this state on March 11, 2020, and
thereafter insuring against loss or damage to property that includes the loss of use and
occupancy and business interruption to be construed to include coverage for business
interruption due to the threat posed by COVID-19 as provided in Proclamation Number 25
JBE 2020, declaring the existence of a statewide public health emergency. Requires the
coverage to indemnify the insured, subject to the limits of the policy, for any loss of business
or business interruption. Applies retroactively to March 11, 2020, to losses incurred during
the declared state of emergency.
Proposed law requires every policy of insurance covering business interruption delivered or
issued for delivery in this state on and after August 1, 2020, to include a notice of all
exclusions on a form prescribed by the commissioner of insurance. Requires the form to be
provided by the insurer and signed by the named insured or his legal representative.
Proposed law provides that the signed form shall be conclusively presumed to become a part
of the policy or contract and creates a rebuttable presumption that the insured knowingly
contracted for coverage with the stated exclusions.
Proposed law applies to any property insurance covering any business interruption that
occurs in La. and involves a La. business.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 22:1272 and 1273)
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.