Louisiana Reminds Insurers of Obligations in Commercial Policy Renewals

Louisiana insurance regulators have issued a new advisory letter reminding authorized property/casualty insurers writing in the state about the information they must provide in writing when they issue a renewal notice to commercial policyholders.

Advisory Letter 2021-03, issued by the Louisiana Department of Insurance states that insurers must issue a notice of renewal to policyholders at least 30 days before the policy expires.
La. R.S. 22:1267, the statute that governs the notices of renewal, requires insurers to provide specific information to policyholders, including the quoted premium, any changes in the deductible, or any changes in coverage.

In the advisory letter, Insurance Commissioner Jim Donelon stated it “has come to my attention that some property and casualty insurers authorized to write commercial insurance in Louisiana may need guidance on compliance with La. R.S. 22:1267 relative to the renewal of commercial insurance policies.”

Among other things, the statute requires insurers to provide commercial insurance “policyholders written notice of any rate increase, change in deductible, or reduction in limits or coverage at least thirty (30) days prior to the expiration date of the policy.”

Donelon said in the advisory letter that he has been advised that some P/C insurers are providing insureds with the 30-day written notice of renewal but are not providing “a detailed written notice to the insured until just a few days before the policy expiration date.”

He also advised that given the challenges of recovery from last year’s hurricanes Laura, Delta and Zeta, insurers should try to give required notice to policyholders earlier than the date mandated by the statute.

Topics Carriers Commercial Lines Business Insurance Louisiana