§ 22:885 — Cancellation by the insured; surrender

Louisiana § 22:885

• Jurisdiction: Louisiana
• Title 22: Insurance

Text

§885. Cancellation by the insured; surrender
A. Cancellation by the insured of any policy which by its terms may be cancelled at
the insured's option or of any binder based on the policy shall be effected only by written
notice thereof to the insurer. Nothing in this Subsection shall be construed to require an
insurer to cancel any policy or any binder based on the policy prior to the date of receipt by
the insurer of the written notice required by this Subsection.
B. Within thirty days following such cancellation the insurer shall pay to the insured
or to the person entitled thereto as shown by the insurer's records, any unearned portion of
any premium paid on the policy as computed on the customary pro rata rate, unless otherwise
stated in a policy that has been filed with and approved by the commissioner, and any
unearned commission. If no premium has been paid on the policy, the insured shall be liable
to the insurer for premium for the period during which the policy was in force. Except for
surplus line insurers, any assessment of a monetary penalty by an insurer against an insured
as a result of the insured's cancellation prior to the expiration of any policy is prohibited.
Nothing in this Section shall prohibit an insurer from calculating unearned premium based
on a short-rate provision contained in any insurance policy that has been filed with and
approved by the commissioner.
C. The written notice of cancellation of a policy to the insurer for any cause by any
person named therein as having an interest insured under the policy shall create a
presumption that the cancellation is agreed to by all persons so named.
D. This Section shall not apply to life insurance policies, annuity contracts, policies
defined in R.S. 22:47(16)(b), or contracts provided for in Subpart C of Part IV of this
Chapter.
E. With respect to the cancellation of liability automobile insurance, the office of
motor vehicles shall not assess the fees set forth by R.S. 32:863(A)(3)(a) when the insured
surrenders the license plate of the uninsured vehicle to the office of motor vehicles within
ten calendar days from the date of notice prescribed by R.S. 32:863.2(E).
F. For purposes of this Section, "written" shall mean the insured's intentional
recording of words in a visual form, whether in the form of handwriting, printing,
typewriting, electronic communication, or any other tangible form.

Legislative History

Acts 1958, No. 125; Acts 1991, No. 739, §1; Acts 1991, No. 790, §1; Acts 1997, No. 1428, §1; Redesignated from R.S. 22:637 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2010, No. 169, §1; Acts 2010, No. 375, §1, eff. Jan. 1, 2011; Acts 2011, No. 21, §1; Acts 2011, No. 135, §1; Acts 2011, No. 370, §1; Acts 2017, No. 299, §1; Acts 2019, No. 225, §1; Acts 2020, No. 185, §1, eff. Jan. 1, 2021.