2006 Louisiana Laws - RS 22:635.3 — Homeowner\'s insurance; insurer\'s nonrenewal without cause; inclusion in insured\'s file prohibited

§635.3.  Homeowner's insurance; insurer's nonrenewal without cause; inclusion in insured's file prohibited

A.  Whenever a policy of homeowner's insurance is not renewed by the insurer and such nonrenewal is without cause, the fact of such nonrenewal shall not be retained in the insured's file with that insurer.  Such nonrenewal shall not be considered a cancellation or nonrenewal for cause.  The insurer shall not utilize such nonrenewal as a reason for an increase in the insured's rate for equivalent coverage to that which was not renewed.

B.  In this Section, nonrenewal "without cause" shall not include nonrenewal by the insurer for any of the following reasons:

(1)  Nonrenewal at the request of the insured;

(2)  Failure of the insured to pay the agreed premium;

(3)  Fraud on the part of the insured; or

(4)  Material misrepresentation of a material fact in application for a new policy or for renewal of an existing policy.

C.   No insurer providing property, casualty, or liability insurance shall cancel or fail to renew a homeowner's policy of insurance or to increase the policy deductible that has been in effect and renewed for more than three years unless based on nonpayment of premium, fraud of the insured, a material change in the risk being insured, two or more claims within a period of three years, or if continuation of such policy endangers the solvency of the insurer.  This Subsection shall not apply to an insurer that ceases writing homeowner's insurance or to policy deductibles increased for all homeowners policies in the state.

Acts 1988, No. 460, §1; Acts 1992, No. 594, §1; Acts 1996, 1st Ex. Sess., No. 71, §1, eff. May 10, 1996; Acts 2003, No. 456, §3.