Beginning Monday, insurers can resume the process of canceling or non-renewing coverage for policyholders in southeast Louisiana after the state’s top insurance regulator opted not to extend emergency protections issued ahead of Hurricane Ida.
On Aug. 26, Insurance Commissioner Jim Donelon invoked Emergency Rule 47, barring insurers from interrupting or dropping coverage, even for non-payment of premiums, for policyholders within 25 parishes in Ida’s path.
The order was extended once but expired Sunday, Oct. 24.
In allowing the protections to sunset, Donelon argued the order put a financial burden on the state’s insurers, who are under ‘significant stress’ as they confront upwards of $20 billion in insured losses and hundreds of thousands of claims.
The Department of Insurance is in contact with ‘several’ insurers who are facing ‘solvency concerns’ as a result of Ida’s destruction, Donelon said.