A new Louisiana law that introduces significant consumer protections for insurance policy cancellations and nonrenewals will take effect this summer.

Louisiana Act No. 182 will require insurance companies to provide customers at least 60 days' written notice prior to the cancellation or nonrenewal of a policy, unless it was cancelled for nonpayment of premiums.

The act states, in part: "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."

In cases where the insured has failed to pay their premium, the law requires that insurers give at least ten days' notice of the cancellation, accompanied by an explanation of why the policy will be terminated. In the event there is a nonpayment of a binder, there is also a ten-day notice requirement for cancellation. Insurers will not be required to send cancellation notices via certified mail.

If a carrier fails to comply with cancellation notice requirements, the act states, "The coverage provided to the named insured at the expiring policy's rate, terms, and conditions shall remain in effect until notice is given or until the effective date of replacement coverage obtained by the named insured, whichever first occurs."

If the insured in this scenario decides not to renew their policy, any earned premium for the period of extension of the terminated policy will be calculated pro rata at the lower of the current or previous year's rate. Any other changes will be effective the day after the prior policy's expiration or anniversary date.

The new law goes into effect on July 1, 2026.

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