HASBSB70 TYLERT 2735
SENATE SUMMARY OF HOUSE AMENDMENTS
SB 70 2021 Regular Session Abraham
KEYWORD AND SUMMARY AS RETURNED TO THE SENATE
INSURANCE POLICIES. Provides for named storm deductibles for
commercial properties. (8/1/21)
SUMMARY OF HOUSE AMENDMENTS TO THE SENATE BILL
1. Redefines "separate deductible" to be a deductible that applies to direct
physical loss or damage resulting from a specified weather event.
2. Specifies that there must be direct physical loss or damage resulting from a
named storm or hurricane for a separate deductible to apply in place of any
other deductible.
3. Specifies that an insured must suffer direct physical loss or damage resulting
from more than one named storm or hurricane loss during a calendar year for
a deductible to apply to any succeeding named storm or hurricane loss.
4. Provides for situations in which an insured pays a named storm or hurricane
deductible for a covered loss and changes insurance companies or renews a
policy that includes a different deductible amount.
5. Makes technical changes.
DIGEST OF THE SENATE BILL AS RETURNED TO THE SENATE
SB 70 Engrossed 2021 Regular Session Abraham
Proposed law provides definitions for "hurricane", "named storm", and "separate deductible"
relative to Proposed law.
Proposed law provides that for all authorized property insurance policies and authorized
commercial multi-peril insurance policies issued or renewed by an authorized insurer on or
after August 1, 2021, any separate deductible that applies in place of any other deductible
to direct physical loss or damage resulting from a named storm or hurricane shall be applied
on an annual basis to all named storm or hurricane losses that are subject to the separate
deductible during the calendar year.
Proposed law permits an insurer to apply a deductible to the succeeding named storms or
hurricanes that is equal to the remaining amount of the separate deductible, or the amount
of the deductible that applies to all perils other than a named storm or hurricane, whichever
is greater, if an insured suffers direct physical loss or damage resulting from a named storm
or hurricane losses from more than one named storm or hurricane during a calendar year that
are subject to the separate deductible referred to in proposed law.
Proposed law provides that an insured is subject to a new named storm or hurricane
deductible under the new or renewed insurance policy, if the insured pays a named storm or
hurricane deductible for a covered loss as provided in proposed law but changes insurance
companies during the calendar year for the previously claimed property or renews a policy
that includes a different deductible.
Effective August 1, 2021.
(Adds R.S. 22:1267.1)
______________________
Thomas L. Tyler
Deputy Chief of Staff