The Louisiana Department of Insurance has announced the promulgation of Regulation 131, which establishes the framework for insurers to nonrenew or cancel homeowners policies that have been in effect for three or more years.
If an insurer intends to cancel or nonrenew more than 5 percent of its homeowners policies that have been in effect for at least 3 years before August 1, 2024, they must request the commissioner’s approval to do so. If an insurer intends to cancel less than 5 percent of such policies, they must notify the commissioner.
The commissioner will review the plan and has the discretion to disapprove of it if it is deemed not to be in the public interest. The commissioner will provide written approval to the insurer. The commissioner will approve or reject any request within 30 days of submission.
The regulation is effective immediately.
Regulation 131 can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.