Louisiana suspends insurance cancellations after Tropical Storm Arthur, giving policyholders more time to pay

Louisiana residents affected by Tropical Storm Arthur got an emergency insurance ruling as they dealt with flooding and storm damage.

State officials paused certain statutes, including insurance cancellations, terminations, and premium payments for all insurance issues affecting policyholders. That gave residents extra time to make payments and manage claims during recovery.

What happened?

Insurance Commissioner Tim Temple issued Emergency Rule 50, which temporarily suspended insurance rules governing premium payments; claim filings; and policy actions such as cancellations, terminations, non-renewals, and non-reinstatements, KATC reported.

The protections apply to policyholders who live in Avoyelles, Lafourche, Pointe Coupee, Rapides, St. Landry, St. Tammany, and Terrebonne parishes as well as to people who have insured property there. The order took effect June 18 and is set to remain in place through July 22 unless it is ended earlier.

"I issued Emergency Rule 50 to protect Louisianans whose lives have been disrupted by Tropical Storm Arthur," which hit Louisiana on June 17, Temple said.

The emergency rule applies to a range of insurers and plans, including property and casualty, life, and annuity companies; health maintenance and managed care groups; preferred provider organizations; third-party administrators acting on their behalf; pharmacy benefit managers; and health insurance issuers, according to KATC. 

Why does it matter?

In the aftermath of a major storm, families and households often face damage to homes and vehicles, evacuation expenses, lost work time, and cleanup costs. Missed premium payments or claim-filing deadlines can add to those disruptions.

What's being done?

The Louisiana Department of Insurance said it used its emergency authority to implement the rule in response to the statewide emergency tied to the storm and related executive orders issued by Gov. Jeff Landry.

The order requires insurers to hold off on certain actions that would cut off coverage or create additional obstacles during recovery.

"As floodwaters recede and affected policyholders shift their focus from the disaster to the recovery phase, now is the time to issue this rule and give them more time to pay premiums without risk of insurance cancellation or non-renewal," Temple said.

Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.