La. Regulators Suspend Cancellations, Nonrenewals with Emergency Rule

September 11, 2008

The Louisiana Department of Insurance on Sept. 10 issued Emergency Rule 24, which addresses premium renewals, cancellations, claim filings and other insurance-related matters affecting Louisiana citizens impacted by Hurricane Gustav, which made landfall in that state on Sept. 1. The rule applies to all insurers doing business in Louisiana, including surplus lines insurers, and is effective for 36 counties declared disaster areas.

The emergency proclamation issued by Louisiana Gov. Bobby Jindal on Aug. 27 in advance of Gustav has been extended to Sept. 26. During the period that the emergency rule is in effect, Louisiana Insurance Commissioner James Donelon has authority over any and all insurance matters in the state.

The Department of Insurance has estimated that some 3.1 million Louisiana residents, or 73 percent of the state’s population, have been affected by Gustav.

According to the departmental notice, “Emergency Rule 24 provides emergency relief to the insureds of Louisiana affected by Hurricane Gustav and its aftermath so that they will be insured and their coverage will continue under those policies that were in effect as of 12:01 a.m. on August 30, 2008.”

Among other things, the rule “suspends any notice of cancellation, notice of nonrenewal, nonreinstatement or any other notice related to any of the types of insurance enumerated in Section 4403” of the Louisiana Insurance Code. It also states that “no policy shall be cancelled or nonrenewed because of a claim resulting from Hurricane Gustav or its aftermath.” Additionally, the rule provides that the “right of an insurer to impose or levy any additional interest, penalty, fee or other charge is hereby suspended until October 1. 2008.”

The complete text of Emergency Rule 24 may be viewed on the Louisiana Department of Insurance at:

Source: Louisiana Department of Insurance

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