2021 Regular Session ENROLLED
SENATE BILL NO. 70
BY SENATOR ABRAHAM
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
1 AN ACT
2 To enact R.S. 22:1267.1, relative to commercial insurance; to provide for definitions; to
3 provide with respect to commercial property insurance deductibles applied to named
4 storm, hurricane, and wind and hail deductibles; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 22:1267.1 is hereby enacted to read as follows:
7 ยง1267.1. Commercial insurance deductibles applied to named storm, hurricane,
8 and wind and hail deductibles
9 A. For purposes of this Section:
10 (1) "Hurricane" means a storm system that has been declared a
11 hurricane by the National Hurricane Center of the National Weather Service.
12 (2) "Named storm" means a storm system that has been declared a
13 named storm by the National Hurricane Center of the National Weather
14 Service.
15 (3) "Separate deductible" means a deductible that applies to direct
16 physical loss or damage resulting from a specified weather event and may be
17 expressed as a percentage of the insured value of the property or as a specific
18 dollar amount and includes hurricane, named storm, and wind and hail
19 deductibles.
20 B. For all authorized commercial property insurance policies and
21 authorized commercial multi-peril insurance policies issued or renewed by an
22 authorized insurer on or after August 1, 2021, any separate deductible that
23 applies in place of any other deductible to direct physical loss or damage
24 resulting from a named storm or hurricane shall be applied on an annual basis
25 to all named storm or hurricane losses that are subject to the separate
26 deductible during the calendar year.
ACT No. 164
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 70 ENROLLED
1 C. If an insured suffers direct physical loss or damage resulting from
2 more than one named storm or hurricane during a calendar year that is subject
3 to the separate deductible provided in Subsection B of this Section, the insurer
4 may apply a deductible to any succeeding named storm or hurricane that is
5 equal to the remaining amount of the separate deductible or the amount of the
6 deductible that applies to all perils other than a named storm or hurricane,
7 whichever is greater. Insurers may require commercial policyholders to
8 maintain receipts or other records of any losses in order to apply any losses to
9 subsequent named storm or hurricane claims.
10 D. If an insured pays a named storm or hurricane deductible for a
11 covered loss as provided in this Section, but changes insurance companies
12 during the calendar year for the previously claimed property or renews a policy
13 which includes a deductible of a different amount, the insured is subject to a
14 new named storm or hurricane deductible under the new or renewed insurance
15 policy for that same property if the new policy includes such a deductible.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.