Policyholder Protection Extended


New Louisiana Emergency Rule Extends Flood-Impacted Policyholder Protection

Louisiana Insurance Commissioner Jim Donelon says a new emergency rule extends the time in which policyholders affected by August 2016 flooding have to comply with insurance policy provisions.

Emergency Rule 33 continues the provisions of previously issued Emergency Rules 28, 30 and 32 which suspend the ability of insurers to cancel or terminate policies due to the inability of policyholders in federal declared disaster areas to comply with certain policy provisions during the state of emergency. For example, some policies might require habitation or occupancy of dwellings or similar provisions that are not reasonably feasible to comply with following the catastrophic flooding.

The Emergency Rule includes the following provisions for the period Aug. 12, 2016, through Aug. 14, 2017:

  • The emergency rule applies to all insurers regarding all types of homeowners and/or residential property insurance, commercial insurance, fire and extended coverage insurance, credit property and casualty insurance, property and casualty insurance and surplus lines insurance.
  • The Emergency Rule applies to insureds living in Acadia, Ascension, Assumption, Avoyelles, Cameron, East Baton Rouge, East Feliciana, Evangeline, Iberia, Iberville, Jefferson Davis, Lafayette, Livingston, Pointe Coupee, St. Charles, St. Helena, St. James, St. John the Baptist, St. Landry, St. Martin, St. Tammany, Tangipahoa, Vermilion, Washington, West Baton Rouge and West Feliciana. All of those parishes were included in the federal disaster declaration following the August 2016 flood events.

Source: Louisiana Department of Insurance