§ 22:887 — Cancellation by insurer; changes to homeowners insurance policies

Louisiana § 22:887

• Jurisdiction: Louisiana
• Title 22: Insurance

Text

NOTE: Section Heading, Paragraphs (A)(intro. para.), and (A)(1)(a) eff. until July 1, 2026.
See Acts 2025, No. 182.
§887. Cancellation by insurer; changes to homeowner's insurance policies
A. Cancellation by the insurer of any policy which by its terms may be cancelled at
the option of the insurer, or of any binder based on such policy, may be effected as to any
interest only upon compliance with either of the following:
(1)(a) Written notice of such cancellation must be actually delivered or mailed to the
insured or to his representative in charge of the subject of the insurance not less than thirty
days prior to the effective date of the cancellation except when termination of coverage is for
nonpayment of premium.
NOTE: Section Heading, Paragraphs (A)(intro. para.), and (A)(1)(a) eff. July 1, 2026. See
Acts 2025, No. 182.
§887. Cancellation by insurer; changes to homeowners insurance policies
A. Cancellation by the insurer of any policy which by its terms may be cancelled at
the option of the insurer, or of any binder based on such policy, may be affected as to any
interest only upon compliance with either of the following:
(1)(a) Written notice of such cancellation shall be actually delivered or mailed to the
insured or to his representative in charge of the subject of the insurance not less than sixty
days prior to the effective date of the cancellation except when termination of coverage is
for nonpayment of premium. The insurer shall include in the notice the cause for which the
insurer is failing to renew the policy.
(b) Upon the written request of the named insured, the insurer shall provide to the
insured in writing the reasons for cancellation of the policy. There shall be no liability and
no cause of action shall arise 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 Subparagraph.
(2) Like notice must also be so delivered or mailed to each mortgagee, pledgee, or
other known person shown by the policy to have an interest in any loss which may occur.
For purposes of this Paragraph, "delivered" includes electronic transmittal, facsimile, or
personal delivery.
(3) Where written notice of cancellation or nonrenewal is required and the insurer
elects to mail the notice, the running of the time period between the date of mailing and the
effective date of termination of coverage shall commence upon the date of mailing.
(4) When the policy is a homeowner's insurance policy, like notice shall be provided
of any cancellation, or if, at the personal request of the insured, any such person is removed
from the policy or substituted with another as provided in Subsection A of this Section.
(5) Any policy may be cancelled by the company at any time during the policy period
for failure to pay any premium when due whether such premium is payable directly to the
company or its agent or indirectly under a premium finance plan or extension of credit, by
mailing or delivering to the insured written notice stating when, not less than ten days
thereafter, such cancellation shall be effective. Nothing in this Code shall mandate a separate
notice of lapse for nonpayment of premium of a policy defined as provided by R.S.
22:1460(G).
B. The mailing of any such notice shall be effected by depositing it in a sealed
envelope, directed to the addressee at his last address as known to the insurer or as shown
by the insurer's records, with proper prepaid postage affixed, in a letter depository of the
United States Post Office. The insurer shall retain in its records any such item so mailed,
together with its envelope, which was returned by the post office upon failure to find, or
deliver the mailing to the addressee.
C. The affidavit of the individual making or supervising such a mailing, shall
constitute prima facie evidence of such facts of the mailing as are therein affirmed.
D.(1) The portion of any premium paid to the insurer on account of the policy,
including unearned commission, unearned because of the cancellation and in amount as
computed on the pro rata basis, must be actually paid to the insured, the agent of the insured,
or other person entitled thereto as shown by the policy or by any endorsement thereon, or be
mailed to the insured or such person as soon as practicable following such cancellation. Any
such payment may be made by cash, check, bank draft, or money order.
(2) When payment is sent to the agent of the insured, the insurer shall be required
to provide notice to the insured, at the time of cancellation, that a return of unearned
premium may be generated by the cancellation.
E. This Section shall not apply to temporary life insurance binders nor to contracts
of life, annuity, or health and accident insurance which do not contain a provision for
cancellation prior to the date to which premiums have been paid, nor to the contracts
provided in Subpart C of Part IV of this Chapter.
F. No insurer shall cancel or refuse to renew any policy of group or family group
health and accident insurance except for nonpayment of premium or failure to meet the
requirements for being a group or family group insurance policy until sixty days after the
insurer has mailed written notice of such cancellation or nonrenewal by certified mail to the
policyholder. The notice shall also include the reason the policy is being cancelled.
NOTE: Paragraph (G)(1) eff. until July 1, 2026. See Acts 2025, No. 182.
G.(1) No insurer shall fail to renew a policy providing property or casualty insurance
unless a notice of intention to not renew is mailed or delivered to the named insured at the
address shown on the policy at least thirty days prior to the effective date of nonrenewal.
NOTE: Paragraph (G)(1) eff. July 1, 2026. See Acts 2025, No. 182.
G.(1) No insurer shall fail to renew a policy providing property or casualty
insurance unless a notice of intention to not renew is mailed or delivered to the named
insured at the address shown on the policy at least sixty days prior to the effective date of
nonrenewal. An insurer shall include in the notice the cause for which the insurer is failing
to renew the policy.
(2) Like notice shall also be delivered or mailed to each mortgagee, pledgee, or other
known person shown by the policy to have an interest in any loss which may occur. For
purposes of this Paragraph, "delivered" includes electronic transmittal, facsimile, or personal
delivery.
(3) This Subsection shall not apply:
(a) To policies regulated by R.S. 22:1266 and 1267.
(b) If the insurer has manifested its willingness to renew the policy either through
the same company or a company in the same group of companies.
(c) In the case of nonpayment of the premium.
(d) If the named insured has provided written notification to the insurer of the
insured's intention to not renew the policy.
(e) In cases of fraud by the insured.
H. Notice of cancellation or nonrenewal given by the insurer in accordance with this
Chapter shall be deemed sufficient. The producer shall not be required to give any separate
or additional notice of cancellation or nonrenewal.
I. Any insurer that issues notice of cancellation on an insurance policy that provides
coverage on any property and later continues or reinstates that insurance policy shall issue
notice of reinstatement to every policyholder, insurance producer, mortgagee, lienholder,
pledgee, or other known person shown by the policy to have an interest in any loss which
may occur thereunder and who received the notice of cancellation.
J. Any insurer that issues notice of cancellation on an insurance policy that provides
casualty coverage and later continues or reinstates that insurance policy shall issue notice of
reinstatement to every policyholder, insurance producer, or other known person shown by
the policy to have an interest in any loss which may occur under the policy and who received
the notice of cancellation issued by the insurer.

Legislative History

Acts 1958, No. 125; Acts 1985, No. 938, §1, eff. Jan. 1, 1986; Acts 1987, No. 510, §1; Acts 1990, No. 877, §1; Acts 1991, No. 741, §1; Acts 2001, No. 1052, §1; Acts 2004, No. 44, §1; Acts 2004, No. 549, §1; Acts 2006, No. 345, §1; Redesignated from R.S. 22:636 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 333, §1, eff. April 1, 2010; Acts 2010, No. 375, §1, eff. Jan. 1, 2011; Acts 2010, No. 1016, §2; Acts 2012, No. 198, §1; Acts 2021, No. 160, §1, eff. Jan. 1, 2022; Acts 2025, No. 182, §1, eff. July 1, 2026.