Louisiana Insurance Commissioner Jim Donelon has issued an emergency rule which allows greater protection and flexibility for policyholders impacted by Hurricane Isaac.
The emergency rule is similar in scope to the rules issued by the Louisiana Department of Insurance (LDI) following Hurricane Gustav in 2008. Emergency Rule 26 applies to policyholders statewide and to any and all types of insurance. The rule includes the following provisions for the period Aug. 26 until Sept. 25, 2012:
- Policyholders affected by Hurricane Isaac will receive an extension of time, until September 25, 2012, to pay insurance premiums due on or after August 26, 2012, without any late fees, penalties, cancellation or non-renewal.
- Louisiana policyholders with health insurance coverage may receive out-of-network medical care; any restrictions that a health plan may place on dispensing of drugs are not applicable and a consumer can receive a 30-day supply of prescription medication without penalty.
- Insurance companies cannot cancel or non-renew any policy of insurance during the time period specified.
- No policy of insurance can be cancelled or non-renewed because of a Hurricane Isaac claim.
The action taken by Donelon was authorized by Gov. Bobby Jindal’s Executive Order BJ 2012-16, granting the Commissioner temporary authority to implement emergency insurance rules, according to the insurance department.