Louisiana Legislature repeals law blocking homeowner’s insurance cancellations

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Bill gets rid of state’s ‘3-year rule’


The Louisiana Legislature repealed a decades-old law Monday that prevents homeowner insurance policy cancellations.

House Bill 611, sponsored by Rep. Gabe Firment, R-Pollock, received final passage in the Legislature and is now headed to the desk of Gov. Jeff Landry, who is expected to sign it.

The bill repeals Louisiana’s unique three-year rule, which prohibits insurance companies from raising deductibles and canceling or not renewing homeowner policies in effect for more than three years.

Once Firment’s bill is enacted into law, insurance companies will be allowed to cancel up to 5% of their policies each year as long as the covered properties aren’t all in one parish. But the 5% mark is not a hard cap because companies can cancel as many policies as they want with approval from the state insurance commissioner.

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