This section defines terms for the Louisiana Insurance Underwriting Plan and lets a policyholder ask in writing to exclude corporeal movable property from covered insurable property.
§2322. Louisiana Insurance Underwriting Plan (Coastal Plan); definitions; movable property; option to exclude A. As used in this Section and R.S. 22:2323 through 2334, unless the context otherwise requires: (1) "Coastal area" means all of that area of the state designated in the "plan" approved by the commissioner of insurance. (2) "Essential property insurance" means any of the following coverages against direct loss to property as defined by the plan approved by the commissioner of insurance: (a) Fire, with or without extended coverage and vandalism and malicious mischief. (b) Windstorm and hail without fire, but only with respect to dwellings and commercial properties on a monoline basis. (c) Homeowners. (3) "Governing committee" means that group which is referred to in R.S. 22:2325 and, where appropriate, any designee of the governing committee. (4) "Insurable property" means immovable property at fixed locations in coastal areas of the state as that term is hereinafter defined or the corporeal movable property located therein, but shall not include insurance on motor vehicles, which property is determined by the governing committee of the plan, after inspection and pursuant to the criteria specified in the plan, to be in an insurable condition against the perils of fire as determined by normal underwriting standards; however, any structure built in substantial accordance with the Standard Building Code, including the design-wind requirements, which is not otherwise rendered uninsurable by reason of use, occupancy, or state of repair, shall be an insurable risk within the meaning of R.S. 22:2321 through 2335. Provided further, that any structure commenced on or after July 29, 1970, not built in substantial compliance with the Standard Building Code, including the design-wind requirements therein, shall not be an insurable risk under the terms of R.S. 22:2321 through 2335. The owner or applicant shall furnish with the application proof in the form of a certificate from a local building inspector, contractor, engineer, or architect that the structure is built in substantial accordance with the Standard Building Code. (5) "Net direct premiums" means gross direct premiums, excluding reinsurance assumed and ceded, written on property in this state for fire and allied lines insurance, including components of homeowners' policies and commercial multiple peril package policies, less return premiums upon canceled contracts, dividends paid or credited to policyholders, or the unused or unabsorbed portion of premium deposits. In no event shall premiums on industrial fire insurance policies be considered "net direct premiums". (6) "Plan" means the document setting the rules of operation approved or promulgated by the commissioner of insurance relative to the Louisiana Insurance Underwriting Plan. B. Notwithstanding Paragraph (A)(4) of this Section, a policyholder may request, in writing, to exclude corporeal movable property from covered insurable property. If the policyholder excludes coverage, the insurer may calculate an actuarially justified reduction in premium. Acts 2004, No. 761, §1, eff. July 6, 2004; Acts 2007, No. 459, §4, eff. Jan. 1, 2008; Redesignated from R.S. 22:1441.1 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 326, §1, eff. Jan. 1, 2010; Acts 2024, No. 401, §1.