GREEN SHEET REDIGEST
HB 296 2020 Regular Session Illg
INSURANCE/POLICIES: Provides for cancellation of a policy by the insured party
DIGEST
Present law allows the cancellation by the insured of any policy which may be cancelled at
the insured's option, or of any binder based on the policy, to be effected if both of the
following are done prior to or on the effective date of the cancellation:
(1) Written notice given to the insurer.
(2) Surrender of the policy or binder for cancellation.
Proposed law requires the cancellation by the insured to only be effected by written notice
and removes the deadline for providing the notice and the requirement to surrender the policy
or binder.
Present law authorizes the insurer, in the event the policy or binder has been lost or destroyed
and cannot be surrendered, to accept and in good faith rely upon the insured's written
statement setting forth the fact of the loss or destruction.
Proposed law repeals present law.
Present law provides that the surrender of a policy to the insurer for any cause by any person
named in the policy as having an interest insured under the policy creates a presumption that
the surrender is agreed to by all persons covered by the policy.
Proposed law provides that the written notice of cancellation of a policy to the insurer for any
cause by any person named in the policy as having an interest insured under the policy
creates a presumption that the cancellation is agreed to by all persons covered by the policy.
Proposed law defines "written" as the insured's intentional recording of words in a visual
form, whether in the form of handwriting, printing, typewriting, electronic communication,
or any other tangible form.
Effective Jan. 1, 2021.
(Amends R.S. 22:885(A) and (C); Adds R.S. 22:885(F))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the
original bill:
1. Change provisions of proposed law from requiring the cancellation by the
insured to be effected by written notice to requiring the cancellation by the
insured to be effected only by written notice.
2. Restore provisions of present law that require surrender of the binder to
effectuate cancellation.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Insurance to the
reengrossed bill
1. Repeals the requirement to surrender the policy or binder based upon the
policy to be cancelled.
Page 1 of 2
Prepared by Brandi Cannon.
2. Prohibits proposed law from being construed to require an insurer to cancel
any policy or any binder based on the policy prior to the date of receipt by the
insurer of the written notice of cancellation.
3. Provides that the written notice of cancellation of a policy to an insurer for
any cause by any named insured on that policy creates a presumption that the
cancellation is agreed to by all named insureds on that policy.
4. Makes technical changes.
Page 2 of 2
Prepared by Brandi Cannon.


Statutes affected:
HB296 Original: 22:885(A)
HB296 Engrossed: 22:885(A)
HB296 Reengrossed: 22:885(A)