Louisiana Begins Rulemaking on Comprehensive New Certificates of Insurance Law

Oct 5, 2010


The Louisiana Department of Insurance has advised insurers that rulemaking has commenced on Regulation 99, which relates to the issuance, effect and approval of certifications of insurance.  A Rule Hearing has been scheduled for October 28, 2010 at 10:00 a.m. during which public testimony will be allowed.  Written comments may be submitted until October 28 at 5:00 p.m.

Effective August 15, 2010, Louisiana’s new law (HB 447) relating to certificates of insurance further amends existing statutes and is considered to be among the nation’s most comprehensive on the issue.   Among other provisions, the law clarifies that, “A certificate of insurance shall also not convey any contractual rights to the certificate holder.”

Under HB 447, all certificates of insurance must be filed and approved by Louisiana’s insurance commissioner except ACORD and ISO certificates, which only require filing.  Once filed, a certificate cannot be altered or modified in any way without re-filing and approval.

HB 447 prohibits certificate requestors or anyone else from demanding or requesting the issuance of a certificate that contains any false or misleading policy information.  The certificate also cannot contain references to legal or insurance requirements contained in any non-policy contracts such as construction or service contracts.

Specifically with regard to cancellation:

“A person shall have a legal right to notice of cancellation, nonrenewal, or any material change, or any similar notice concerning a policy of insurance only if the person is named with the policy or any endorsement and the policy or endorsement, law, or regulation of this state requires notice to be provided. The terms and conditions of the notice, including the required timing of the notice, are governed by the policy of insurance in accordance with the laws and regulations of this state and cannot be altered by a certificate of insurance.”

To access the complete text of HB 447, click here.


Should you have any comments or questions, please contact Colodny Fass.


To unsubscribe from this newsletter, please send an email to bellis@cftlaw.com.