INSURANCE: Provides relative to cancellation notice requirements in the Standard Fire Policy
Summary
HB 850 revises Louisiana’s Standard Fire Insurance Policy to lengthen the notice period an insurer must give before canceling a residential property insurance policy. Under current law, an insurer may cancel with 30 days’ written notice, or 10 days’ notice for nonpayment of premium; the bill changes the general cancellation notice period to 60 days while keeping the 10-day notice for nonpayment. The bill also applies the same change to cancellation notices sent to mortgagees whose interests are protected under the policy.
The measure amends R.S. 22:1311(F)(2), which sets out the standard fire policy provisions in state law. It does not change the basic structure of the policy or the insurer’s right to cancel, but it does require more advance notice before cancellation takes effect for both insured homeowners and mortgage lenders. The act becomes effective July 1, 2026.
Impact
HB 850 directly changes Louisiana insurance law by amending the statutory Standard Fire Policy to require 60-day written cancellation notices for both insureds and mortgagees, except in cases of nonpayment of premium where the 10-day notice remains in place. This affects residential property insurance policies governed by the standard fire policy provisions and gives policyholders and mortgage holders more time to respond to a pending cancellation, seek replacement coverage, or address underwriting issues.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the House unanimously, 94-0, and there is no committee transcript indicating significant opposition or debate. The overall sentiment reflected in the voting history suggests general agreement that extending cancellation notice periods is a consumer-protection measure and a modest procedural change rather than a major policy shift.
Contention
No major points of contention are evident in the available record. The only substantive policy choice in the bill is whether cancellation notices should remain at 30 days or be extended to 60 days, and whether mortgagee notices should match the insured notice period. The bill preserves the shorter 10-day notice for nonpayment of premium, which suggests the main balance struck was between providing more time for insureds and mortgagees while retaining insurer protections for delinquency-related cancellations.
Establishes a flat rate of insurance premium tax and provides relative to certain insurance premium tax credits and exemptions (RR SEE FISC NOTE GF RV)