Compliance Alerts

Louisiana Enacts Multiple Bills

Written by AAIS | Jun 24, 2024

Louisiana has enacted multiple bills in this year's legislative session. Summaries of some of the recent bills follow.

Senate Bill 242

Senate Bill 242 states that an insurer shall not solely rely upon aerial images of an insured property to identify the specific condition that serves as the insurer's basis for cancellation or nonrenewal of a homeowners insurance policy unless the images are taken within 24 months of the date of the cancellation or nonrenewal.

 

Senate Bill 337

Senate Bill 337 amends the military personnel premium discount on automobile insurance to include military reservists. The bill also provides insurers with certain credits when offering a premium discount for military reservists, retired military, and veterans with a disability of fifty percent or more. 

 

Senate Bill 344

Senate Bill 344 applies to homeowners insurance policies and requires applicants or existing insureds to disclose to the insurer if the property is intended to be used as a group home. If the applicant or insured fails to provide this information, the insurer has cause to cancel or nonrenew the policy as specified.

 

Senate Bill 345

Senate Bill 345 states that an insurer providing homeowners insurance shall provide up to a maximum of a 60-day grace period for the payment of a semi-annual or annual insurance premium when requested, as specified, by a surviving spouse. When the grace period is implemented, any cancellations or nonrenewals should also be extended by the length of the grace period. After the grace period has concluded, all sums originally due shall become due and payable.

 

House Bill 337

House Bill 337, among other provisions, stipulates that injured persons or certain others do not have the right to take direct action against an insurer unless at least one of the specified circumstances applies. The Bill also outlines various actions that a liability insurer must take if they deny coverage.

 

House Bill 511

House Bill 511 applies to uninsured motorist coverage and indicates that an insurer may require the producer of record to obtain a completed selection form and deliver it to the insurer. The Bill states that the insurer shall verify that the form is completed properly and retain a copy as part of the policy. Additionally, the insurer may not delegate the obligation to retain such form to the producer of record. The provisions apply to new policies written on or after April 1, 2025.

 

Please see the links provided above for more information.