§ 22:1265 — Property, casualty, and liability insurance policies; cancellation and nonrenewal

§1265. Property, casualty, and liability insurance policies; cancellation and nonrenewal
provisions; nonrenewal for rate inadequacy; certain prohibitions
A.(1) Any insurer cancelling or refusing to renew a policy providing property,
casualty, or liability insurance on any property shall, upon written request of the policy's
named insured, specify in writing the reason or reasons for such cancellation or refusal to
renew. Such request shall be mailed or delivered to the insurer within six months after the
effective date of cancellation or expiration.
(2) There shall be no liability and no cause of action of any nature against any insurer
or its producers, employees, or representatives for any action taken by them to provide the
reasons for cancellation as required by this Subsection.
(3) Any nonrenewal for which the reason, in whole or in part, is inadequacy or
insufficiency of the rate or premium for coverage shall be permitted only after the insurer has
sought actuarially justified rate relief from the commissioner of insurance and such rate relief
has been rejected by the commissioner.
B. There shall be no liability and no cause of action of any nature against the
commissioner of insurance or against any insurer, its authorized representative, its producers,
its employees, or any firm, person, or corporation furnishing to the insurer information as to
reasons for cancellation or refusal to renew, or in any other communication, oral or written,
specifying the reasons for cancellation or refusal to renew, or the providing of information
pertaining thereto, or for statements made or evidence submitted at any hearings conducted
in connection therewith.
C. No insurer providing property, casualty, or liability insurance shall cancel or
refuse to issue or fail to renew a homeowner's policy solely on the basis that the insured owns
or possesses an all-terrain vehicle (ATV). The provisions of this Subsection shall not
prohibit an insurer providing property, casualty, or liability insurance from specifically
excluding coverage for damage incurred or arising from the operation of an all-terrain
vehicle.
D.(1) An insurer providing property, casualty, or liability insurance shall not cancel
or fail to renew a homeowner's policy of insurance that has been in effect and renewed for
more than three years unless based on nonpayment of premium, fraud of the insured, a
material change in the risk being insured, two or more claims within a continuous three-year
period of time within the five years preceding the current policy renewal date, or if
continuation of such policy endangers the solvency of the insurer. This Subsection does not
apply to an insurer that withdraws from the homeowners' insurance market in this state or to
the modification of policy deductibles for homeowners' policies in this state. For the
purposes of this Subsection, modification of coverages at the time of renewal shall not be
deemed a cancellation or failure to renew a policy.
(2) For the purposes of this Subsection, an incident shall be deemed a claim only
when there is a demand for payment by the insured or the insured's representative under the
terms of the policy. A report of a loss or a question relating to coverage does not
independently establish a claim. As used in this Subsection, the phrase "two or more claims
within a continuous three-year period of time within the five years preceding the current
policy renewal date" does not include any loss incurred or arising from an "Act of God"
incident which is due directly to forces of nature and exclusively without human intervention.
E. The department shall review annually every insurer that cancels or fails to renew
any insurance policy providing property, casualty, or liability insurance on any property
which policy has been in effect and renewed for more than three years when the cancellation
or nonrenewal is based on the reason that continuation of the policy endangers the solvency
of the insurer or when based on the reason, in whole or in part, of inadequacy or insufficiency
of the rate or premium for coverage after the insurer has sought actuarially justified rate relief
from the commissioner and such relief has been rejected by the commissioner. Any action
against an insurer taken by the department for a violation of the provisions of this Section
shall remain in effect until changed or modified by the commissioner based upon the review
required under the provisions of this Subsection.
F. Repealed by Acts 2024, No. 9, §2, eff. Jan. 1, 2025.
G. No homeowner's policy of insurance shall contain any provision that would apply
more than one deductible to a loss resulting from any single incident covered by the policy.
Any such provision shall be null and void and unenforceable as contrary to public policy.
H. Repealed by Acts 2024, No. 9, §2, eff. Jan. 1, 2025.
I. Any authorized property and casualty insurer that avails itself of the provisions of
Subsection D of this Section relative to withdrawing from the homeowners' insurance market
may not issue any homeowners' insurance coverage in this state during the five-year period
beginning on the date of the discontinuation of the last homeowners' insurance coverage not
so renewed. The commissioner may, for good cause shown pursuant to a written request by
the insurer, permit the insurer to reenter the homeowners' insurance market prior to the
expiration of the five-year period.
J. Any approved unauthorized property and casualty insurer that avails itself of the
provisions of Subsection D of this Section relative to withdrawing from the homeowners'
insurance market may not issue any homeowners' insurance coverage in this state during the
five-year period beginning on the date of the discontinuation of the last homeowners'
insurance coverage not so renewed. The commissioner may, for good cause shown pursuant
to a written request by the insurer, permit the insurer to reenter the homeowners' insurance
market prior to the expiration of the five-year period.
K. Subsections D and E of this Section do not apply to any policies issued after
August 1, 2024.
L. Notwithstanding the provisions of Subsection D of this Section, for policies in
place for at least three years on or before August 1, 2024, the following provisions apply:
(1) Upon filing a plan with the commissioner, an insurer may nonrenew up to five
percent of its customers' policies per calendar year for any reason.
(2) Upon request of the insurer, the commissioner may approve the nonrenewal of
more than five percent of the insurer's customers' policies in a given calendar year.
(3) An insurer's plan and request submitted pursuant to this Subsection are
considered proprietary or trade secret information pursuant to R.S. 44:3.2 and the Uniform
Trade Secrets Act pursuant to Chapter 13-A of Title 51 of the Louisiana Revised Statutes of
1950.
(4) The commissioner shall promulgate and adopt rules, in accordance with the
Administrative Procedure Act, setting forth requirements for the plan and request described
in this Subsection.
NOTE: Former R.S. 22:1265 redesignated as R.S. 22:439 by Acts 2008, No.
415, §1, eff. Jan. 1, 2009.

Legislative History

Added by Acts 1968, No. 51, §1; Acts 1987, No. 510, §1; Acts 1988, No. 953, §1, eff. Sept. 1, 1988; Acts 1991, No. 840, §1; Acts 1992, No. 594, §1; Acts 1996, 1st Ex. Sess., No. 71, §1, eff. May 10, 1996; Acts 2004, No. 826, §1; Acts 2007, No. 381, §1, eff. July 10, 2007; Acts 2007, No. 459, §4, eff. Jan. 1, 2008; Redesignated from R.S. 22:636.2 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2008, No. 440, §1; Acts 2008, No. 854, §1, eff. July 9, 2008; Acts 2010, No. 703, §1, eff. Jan. 1, 2011; Acts 2014, No. 353, §1; Acts 2024, No. 9, §1, eff. May 7, 2024; Acts 2024, No. 9, §§1, 2, eff. Jan. 1, 2025.