LA| Regulation 131, promulgated by the Louisiana Department of Insurance, establishes the process and requirements for insurers seeking to nonrenew or cancel homeowners insurance policies that have been in effect for more than three years as of August 1, 2024. The regulation allows insurers to nonrenew or cancel up to 5% of such policies in a calendar year for any reason by notifying the commissioner, and requires commissioner approval for plans affecting more than 5%. Insurers must submit detailed plans and data to ensure compliance, prevent disproportionate impacts on specific areas, and protect policyholder interests, with the commissioner retaining the authority to disapprove, rescind approval, or enforce penalties for violations.
Key points:
- Insurers may nonrenew or cancel up to 5% of eligible homeowners policies in a calendar year for any reason by notifying the commissioner; commissioner approval is required for plans exceeding 5%.
- Insurers must submit a comprehensive plan detailing affected policies, geographic distribution, and compliance with the 5% per parish limit, with data submitted through the Department of Insurance portal.
- The commissioner may disapprove plans not in the public interest, rescind approvals for misrepresentation or discrimination, and enforce penalties for violations of law or regulation.
Click here to see LA Notice of promulgation of Regulation 131