La. Admin. Code tit. 37 § XIII-15911

Current through Register Vol. 50, No. 11, November 20, 2024

Section XIII-15911 - Coverage Obligations Imposed on the Insurer upon Disapproval

A. If an insurers consent to rate application under Regulation 111 is disapproved for any reason, then the premium charged to the insured shall revert to the approved manual rate for the duration of the policy term, and the insurer shall refund the difference between the excess rate and the approved manual rate to the insured. Coverage shall still be binding on the insured and insurer for the duration of the policy. The insurer shall have 30 days from the date of the commissioners disapproval of the consent to rate application to refund any monies due to the insured.

B. If an insurers consent to rate application under Regulation 111 is disapproved for any reason, then the insurer may, within 10 calendar days from the commissioners disapproval, exercise one of the following options.

1. The insurer may cancel the policy and shall provide the insured with not less than 60 days written notice of the insurers intent to cancel the policy.

2. The insurer may enter into a new policy with the insured and submit a new, subsequent consent to rate application. However, if a new, subsequent consent to rate application is submitted, the insurer will be required to utilize the approved manual rate provided in such new, subsequent consent to rate application and will not be able to implement the requested excess rate until such new, subsequent consent to rate application is approved by the commissioner.

3. An insurer may appeal the disapproval of a consent to rate application as set forth in R.S. 22:1451.C(1).

C. After a consent to rate application has been disapproved, if the commissioner approves a new, subsequent consent to rate application, the excess rate so approved shall be implemented on a prospective basis from the date of approval for the duration of the policy term.

La. Admin. Code tit. 37, § XIII-15911

Promulgated by the Department of Insurance, Office of the Commissioner, LR 442213 (12/1/2018).

AUTHORITY NOTE: Promulgated in accordance with R.S. 22:1464, R.S. 22:1473, and the Administrative Procedure Act, R.S. 49:950 et seq.