Louisiana Insurance Regulation 93 Named Storm and Hurricane Deductibles
The Louisiana Department of Insurance (“Department”) has recently issued Regulation 93 (“Reg. 93”) relative to named storm and hurricane deductibles. Reg. 93 applies to certain authorized property and casualty insurers, as well as approved unauthorized insurers (i.e., surplus lines) and modular homes. However, Reg. 93 does not apply to commercial properties or to commercial residential properties with three or more units. The Regulation requires subject insurers to file a business plan with the Department setting forth the insurer’s plan to write new business in Louisiana when the insurer seeks authorization to make permissible deviations from the Louisiana Insurance Code provisions applicable to deductibles for named storms and hurricanes. The business plan must include, among other items, a written description and a statewide graphical representation of each proposed region for which mandated minimum regional deductibles will vary. Additionally, Reg. 93 states that any homeowners policy of insurance containing any provision that would apply more than one deductible to a loss resulting from any single incident covered by the policy is null, void and unenforceable as contrary to public policy.