The Louisiana Department of Insurance (“Department”) has recently released Advisory Letter 2026-01 regarding notice requirements for cancellation or non-renewal of surplus lines property and casualty insurance policies. The key highlights are as follows:
- The Louisiana Insurance Code contains no specific provisions expressly providing that surplus lines insurers are required to send a cancellation or nonrenewal notice to insureds.
- As a result, there is no statutory requirement governing cancellation or nonrenewal notice for surplus lines residential or commercial property and casualty insurance policies.
- However, the Insurance Commissioner may rely on the general regulatory authority under La. R.S. 22:2 to provide clarification and ensure consistency within the regulatory framework.
- Therefore, in order to promote fairness and reasonable consumer protection, surplus lines insurers must provide the insured with a minimum of thirty (30) days’ advance written notice prior to the cancellation or nonrenewal of commercial and residential surplus lines property and casualty insurance policies, unless a shorter notice period is otherwise permitted by law for specific circumstances, such as nonpayment of premium.
Please note that the advisory letter became effective upon issuance on March 11, 2026.
For any questions related to the above referenced advisory letter in Louisiana, please contact Westmont Associates!