- Louisiana Department of Insurance Warns Homeowners Insurers of $10,000 Monthly Fine For Act 427 Non-Compliance
- June 10, 2015
- Law Firm: Colodny Fass P.A. - Fort Lauderdale Office
- Given the substantial fine of $10,000 per month that could be levied for non-compliance with newly enacted Act 427, the Louisiana Department of Insurance ("LDI") issued its second reminder today, March 30, 2015, to all authorized Louisiana homeowners insurers that Act 427 data must be submitted on or before May 1, 2015.
For purposes of Act 427, "homeowners' insurance" includes condominium insurance, residential fire insurance, renter's and tenant's insurance, and mobile home and manufactured housing insurance. The provisions of Act 427 do not apply to creditor-placed homeowners' insurance, condominium association insurance, commercial insurance, reinsurance or surplus lines insurance.
Last year, Act 427 enacted R.S. 22:1488, which established certain data reporting requirements that homeowners' insurers must provide annually to the LDI no later than May 1, 2015. The law also states that, should it be incurred, the $10,000 fine can not be waived or reduced except by an act of the Louisiana Legislature.
Advisory Letter 2014-05, provides insurers guidance on the form and procedure homeowners' insurers shall use to submit the requisite information to the LDI.
A Sample Data Collection Template with instructions can be accessed via www.ldi.la.gov/act427.
The LDI also reminded that data can be submitted electronically on or before May 1 via the Act 427 Module at the LDI's Industry Access Portal at the following hyperlink: https://ia.ldi.state.la.us/industryaccess