Louisiana declared a public health emergency in response to the coronavirus (COVID-19) pandemic on March 11, 2020. The Louisiana Department of Insurance issued Emergency Rule 40 – Moratorium on Policy Cancellations/Non-Renewals for Policyholders in Louisiana during the Outbreach of Coronavirus Disease (COVID-19) –to all insurers, which includes the following:
- For as long as the Emergency Rule remains in effect, insurers cannot cancel or nonrenew policies that were in effect on or before March 12, 2020, except for fraud or material misrepresentation, or the written request by the insured.
- Any notice of cancellation, nonrenewal, or non-reinstatement for a policy that was in effect on March 12 is suspended. Cancellations and nonrenewals will be reissued after the expiration of the Emergency Rule.
- Effective March 12, insurers are prohibited from issuing new cancellation notices until expiration of the Emergency Rule. This prohibition includes cancellation notices issued through a premium finance company.
- Renewal conditions for insurance policies subject to renewal after March 12 and before the expiration of the Emergency Rule are suspended and deferred until the Rule expires. All policies subject to renewal after March 12 and before the expiration of the Emergency Rule must continue in full force and effect at the previously established premium until the Rule expires.
- Insurers are prohibited from imposing any interest, penalty or other charge against insureds as a result of the suspensions ordered in the Emergency Rule.
- Nothing in the Emergency Rule shall be construed to exempt or excuse an insured from the obligation to pay the premiums otherwise due for actual insurance coverage provided, or relieve an insured who has a claim filed before or during the pendency of the Emergency Rule from complying with the obligation to provide information and cooperate in the claim adjustment process
- A policy cannot be canceled or nonrenewed solely because of a claim that is filed during or occurs the COVID-19 emergency.
- Insurers may offset premium owed from claims payments made to the insured.
- All claims notification procedures, including, but not limited to, R.S. 22:975(A)(3)-(5), Regulation 33, Regulation 74, and Regulation 77, are suspended.
The Rule is effective from March 12 through May 12, but does not apply to new policies that were issued on or after March 12.
For complete details, please see the full Louisiana Emergency Rule 40.