On May 16, LOU LEG passed a bill homeowner's premium extension.
LOU LEG passed bill SB 345 extensions for premiums due for homeowners' policies.
Bill amended LOU INS 22:1335, homeowner's insurance cancellation, nonrenewal.
Bill Provisions
Provides a grace period of up to 60 days for a surviving spouse to pay the semi-annual or annual premium payment due if the surviving spouse meets set conditions.
Must provide a copy of the deceased death certificate that includes the date he died and the date of his death is within 60 days following original premium due date.
Also, specify the length of days for the grace period that is not longer than 60 days following the original due date for a semi-annual or annual insurance premium.
Provides at the end of the grace period all sums originally owed becomes due, payable
Proposed law provides the grace period does not apply when premiums are paid through an escrow arrangement with a lending institution or financial intermediary.
Grace period does not create a private right of action by the insured, except MD INS is authorized to consider failure of insurer to grant timely request as violation of law.
Legislative History
On Mar. 11, 2024, bill introduced in Senate; on Apr. 9, 2024, bill passed in Senate.
On Apr. 10, 2024, bill introduced in House; on May 15, 2024, bill passed in House.
On May 16, 2024, bill enrolled in Senate; on May 16, 2024, bill sent to Governor.
Effectiveness
The provisions of this Act shall become effective on Jan. 1, 2025.
May 2024 LOU LEG Governor Approval
On May 23, 2024, LOU LEG reported governor signed bill SB345 into law as Act 175.
Regulators
LOU LEG
Entity Types
Ins
Reference
Act 175, 5/23/2024; Bill SB345, 5/16/2024; Citation: LOU INS 22:1335;
