Louisiana Department of Insurance Issues Emergency Rule

Louisiana Department of Insurance issues a temporary insurance rule providing relief to victims of Hurricane Laura.

Policyholders in 16 Louisiana parishes may contact their insurance company to request relief. This applies to the following parishes: Acadia; Allen; Beauregard; Calcasieu; Cameron; Grant; Jackson; Jefferson Davis; Lincoln, Natchitoches; Ouachita; Rapides; Sabine; Vermilion; Vernon; and Winn.

Emergency Rule 45 suspends cancellations, terminations, non-renewals, and non-reinstatements, premium payments, claim filings and related provision for residents in, or whose employer resides in, any of the affected counties.

Applicability

The rule applies to all types of insurance, including group and individual health coverage, Medicare supplements, disability insurance, stop loss, excess coverage, long-term care, workers’ compensation, property-casualty, life insurance, etc.

Effective Period of Emergency Rule 45

The rule is effective for the period of August 27, 2020, through October 24, 2020.

Types of Relief During Emergency Period

• Suspends any notice of cancellation, notice of non-renewal, non-reinstatement or any other notice related to a policy that was in force as of August 27, 2020, until after the expiration of Emergency Rule 45
• In force policies as of the effective date of the emergency must continue in force at the same premium for the duration of the Emergency period
• All rates for policies renewing during the emergency period must align with the pre-approved rate structure and rating plans previously provided by the Commissioner of Insurance
• Cancellations may only take place with a documented written request of the insured
• All claims notification requirements are suspended
• Nothing in the rule exempts or excuses an insured from the obligation to pay their premium but is only an extension or grace period to facilitate payment –
• Insurers must either provide a premium payment extension or payment plan and may pend all eligible claims until premium payment is received, or insurer may resume cancelation or termination proceedings, i.e., upon exhaustion of the emergency rule
• Insurers may not assess any interest, penalty, or other charge to the insured during the effective period of the rule
• Individuals may obtain refills of prescriptions even if the prescription was recently filled (may not apply to prescriptions with high likelihood of abuse, e.g., opioids
• All coverage limitations imposed by the policy on telemedicine services are waived, including requirement for patient and provider to have a previous relationship, exclusion of mental health services, or limitation to provider-to-provider consultations

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