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Home / Insurance / Louisiana Insurance Commissioner Issues Bulletin of Statutory Extensions for Evidence of Loss and Reimbursement Costs for Coverage Deadlines | Legal insurance blog for property insurance

Louisiana Insurance Commissioner Issues Bulletin of Statutory Extensions for Evidence of Loss and Reimbursement Costs for Coverage Deadlines | Legal insurance blog for property insurance



In October last year, we pointed out the alarming number of insurance companies in Louisiana that contributed to the grief of Hurricane Laura insured by requesting proof of loss within 60 days and that repairs would be completed within 180 days to obtain compensation cost benefits under their policy. We also sent correspondence to Louisiana's Insurance Commissioner, James J. Donelon, requesting that an advisory letter be sent to Louisiana insurance companies reminding them of Louisiana's statutory extensions of time limits for proof of loss and compensation costs. On February 11, 2021, Louisiana's Insurance Commissioner issued Bulletin 2021-02: 1

[T] o provide notification and guidance to all authorized property and non-life insurers and all surplus insurers (hereinafter collectively referred to as & # 39; insured insurers & # 39; placed on them in relation to evidence of loss documentation from their policyholders for claims caused by any of the many hurricanes that affected Louisiana 2020. The additional purpose of Bulletin 2021
-02 is to urge and request that all insurers recognize monumental impact as these multiple hurricanes have had on their insured and to act responsibly to provide extensions of time to their policyholders who, despite their best efforts, struggle to make necessary repairs to their property and rightly need additional time to complete repairs. [19659003] In the Bulletin, Commissioner Donelon explains the effect of extending evidence of loss in La. RS 22: 1264 (A):

One hundred and eighty days is the minimum period of time that insurers must allow for the submission of proof of loss for damages resulting from a qualified disaster. In order to determine the appropriate period of time to be able to submit evidence of loss for specific claims, insurers should take into account the negative impact that several hurricanes have within a short period of time on the policyholder's ability to engage contractors to monitor repairs, lack of materials and equipment. to carry out the repairs and the lack of skilled labor to carry out the repairs.

Commissioner Donelon also explains the effect of the extension cost coverage in La. RS 22: 1264 (8):

The charter clearly states that the one-year period within which the insured must complete repairs to his property damaged as a result of a qualified disaster in order to receive full compensation cost coverage does not begin to run until the insurer's payment of applicable insurance income . In addition, policyholders in Louisiana in the areas affected by multiple hurricanes within a short period of time face serious challenges when trying to complete repairs to storm-damaged property within a year due to the scale of the devastation and the limited availability of contractors available to carry out the repairs. . . Insurers are encouraged to work with policyholders and to provide a reasonable extension of time when it is justified to complete repairs below the cost of reimbursing their insurance policies.

The need for guidance and guidance from the Louisiana Department of Insurance to Louisiana insurance companies can not be discreet. Recently, we received correspondence that attached an additional payment based on a revised estimate of covered damage from Hurricane Laura six months ago and urged the insured that in order to receive compensation costs, the repairs must be done within 180 days.

to Commissioner Donelon and those of the Louisiana Insurance Department who work tirelessly to protect Louisiana insureds and hope that Louisiana insurers will be guided by this bulletin accordingly.
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1 LDI Bulletin 2021-02, Time periods for proof of loss and for completion of repairs under compensation cost coverage for damages related to catastrophic events James J. Donelon, Insurance Commissioner.


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