Commissioner Donelon Issues Emergency Insurance Rule for Policyholders Impacted by Hurricane Isaac
Insurance Commissioner Jim Donelon is announcing the issuance of an emergency rule which allows greater protection and flexibility for policyholders impacted by Hurricane Isaac. The action taken by Commissioner Donelon was authorized by Governor Bobby Jindal’s Executive Order BJ 2012-16, granting the Commissioner temporary authority to implement emergency insurance rules.
“Emergency Rule 26 provides some necessary protections for insured individuals and business owners in Louisiana who are already dealing with the aftermath of Isaac.” said Commissioner Donelon. “For example, the emergency rule will enable policyholders who were displaced by Isaac to have access to the coverages provided by their health policies for emergency treatment, even if they are forced by circumstances to go to an out-of-network provider.”
The emergency rule is similar in scope to the rules issued by the Louisiana Department of Insurance (LDI) following Hurricane Gustav in 2008. Emergency Rule 26 applies to policyholders statewide and to any and all types of insurance. The rule includes the following provisions for the period August 26 until September 25, 2012:
- Policyholders affected by Hurricane Isaac will receive an extension of time, until September 25, 2012, to pay insurance premiums due on or after August 26, 2012, without any late fees, penalties, cancellation or non-renewal.
- Louisiana policyholders with health insurance coverage may receive out-of-network medical care; any restrictions that a health plan may place on dispensing of drugs are not applicable and a consumer can receive a 30-day supply of prescription medication without penalty.
- Insurance companies cannot cancel or non-renew any policy of insurance during the time period specified.
- No policy of insurance can be cancelled or non-renewed because of a Hurricane Isaac claim.
To view Emergency Rule 26, please visit the LDI website www.ldi.la.gov.
Please note: Emergency Rule 26 was amended on September 7 to make it applicable in 23 parishes. To view the amended rule, please click here.