§ 22:1267.1 — Commercial insurance deductibles applied to named storm, hurricane, and wind and

Louisiana § 22:1267.1

• Jurisdiction: Louisiana
• Title 22: Insurance

Text

§1267.1. Commercial insurance deductibles applied to named storm, hurricane, and wind and
hail deductibles
A. For purposes of this Section:
(1) "Hurricane" means a storm system that has been declared a hurricane by the
National Hurricane Center of the National Weather Service.
(2) "Named storm" means a storm system that has been declared a named storm by
the National Hurricane Center of the National Weather Service.
(3) "Separate deductible" means a deductible that applies to direct physical loss or
damage resulting from a specified weather event and may be expressed as a percentage of
the insured value of the property or as a specific dollar amount and includes hurricane,
named storm, and wind and hail deductibles.
B. For all commercial property insurance policies and commercial multi-peril
insurance policies issued or issued for delivery in this state by an authorized insurer on or
after January 1, 2023, except for policies with a total insured value equal to or greater than
twenty million dollars, any separate deductible that applies in place of any other deductible
to direct physical loss or damage resulting from a named storm or hurricane shall be applied
on an annual basis to all named storm or hurricane losses that are subject to the separate
deductible during the calendar year.
C. If an insured suffers direct physical loss or damage resulting from more than one
named storm or hurricane during a calendar year that is subject to the separate deductible
provided in Subsection B of this Section, the insurer may apply a deductible to any
succeeding named storm or hurricane that is equal to the remaining amount of the separate
deductible or the amount of the deductible that applies to all perils other than a named storm
or hurricane, whichever is greater. Insurers may require commercial policyholders to
maintain receipts or other records of any losses in order to apply any losses to subsequent
named storm or hurricane claims.
D. If an insured pays a named storm or hurricane deductible for a covered loss as
provided in this Section, but changes insurance companies during the calendar year for the
previously claimed property or renews a policy which includes a deductible of a different
amount, the insured is subject to a new named storm or hurricane deductible under the new
or renewed insurance policy for that same property if the new policy includes such a
deductible.
E. This Section shall apply only to property located in this state.

Legislative History

Acts 2021, No. 164, §1; Acts 2022, No. 259, §1, eff. Jan. 1, 2023.