Louisiana Commissioner Praises Court Ruling on Emergency Rule

Louisiana Commissioner of Insurance Jim Donelon announced he is pleased that the 19th Judicial District Court has upheld an emergency rule put in place during Hurricane Isaac and his authority to do so during catastrophic events.

Judge Janice Clark heard the Louisiana Department of Insurance’s (LDI) motion for summary judgment regarding a lawsuit brought by the State Medical Society and the Louisiana Hospital Association on an emergency rule implemented following Hurricane Isaac. Judge Clark ruled that the LDI acted within its constitutional authority in implementing the emergency rule.

Emergency Rule 26 allowed for greater protection for policyholders affected by hurricanes, including evacuees, for a limited period of time by requiring, among other things, that out-of-network medical care be treated like an in-network claim.

The action taken by Commissioner Donelon was authorized by Governor Bobby Jindal’s Executive Order BJ 2012-16, which granted the Commissioner temporary authority to implement emergency insurance rules, according to the LDI.

Emergency Rule 26 was in effect from Aug. 26 through Sept. 25, 2012, and applicable in the 23 parishes impacted by Hurricane Isaac.

Source: Louisiana Department of Insurance

Topics Legislation Louisiana Hurricane