Texas, Louisiana Enact Emergency Rules for Hurricane Relief

Insurance regulators in both Texas and Louisiana have enacted emergency rules aimed at providing relief for insurance consumers in the wake of Hurricanes Gustav and Ike.

The Louisiana Department of Insurance issued Emergency Rule 24, which addresses premium renewals, cancellations, claim filings and other insurance-related matters affecting Louisiana citizens impacted by Hurricane Gustav, which made landfall in that state on Sept. 1. The rule applies to all insurers doing business in Louisiana, including surplus lines insurers, and is effective for all declared disaster areas.

Emergency Rule 24 “suspends any notice of cancellation, notice of nonrenewal, nonreinstatement or any other notice related to any of the types of insurance enumerated in Section 4403” of the Louisiana Insurance Code. It also states that “no policy shall be cancelled or nonrenewed because of a claim resulting from Hurricane Gustav or its aftermath.”

Emergency Rule 24 may be viewed online at: www.ldi.louisiana.gov

Texas Insurance Commissioner Mike Geeslin issued a series of bulletins that, among other things, instructed to insurance carriers to temporarily suspend premium payments for policyholders affected by the storms. TDI also determined “it is inappropriate for insurers to re-rate, cancel, nonrenew, or refuse to provide coverage due solely to an individual’s status as a victim or evacuee of Hurricane Ike.”

Additionally, TDI’s Division of Workers’ Compensation said insurance carriers should “provide all injured employees impacted by the hurricane with methods for reporting a change of address and to use all available means to provide to injured employees prompt and immediate relief, including but not limited to processing and delivery of benefit checks and necessary medical care, services, and supplies, including physical therapy, pharmacy, or medical equipment.”

TDI reported it will work with carriers to minimize the regulatory effects of a carrier’s suspension of premium payments.

TDI’s bulletins can be found online at www.tdi.state.tx/bulletins/index.html.

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