Louisiana Revised Statutes 22:2011 – Premiums due; effect of injunction, or order of rehabilitation or liquidation
Terms Used In Louisiana Revised Statutes 22:2011
- Contract: A legal written agreement that becomes binding when signed.
- Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
A. If an insurer is enjoined from transacting any insurance business or from disposing of its property under La. Rev. Stat. 22:2006 or issued an order directing rehabilitation or liquidation under La. Rev. Stat. 22:2008, any premium due or payable on a contract of insurance which was issued by the insurer shall be paid by the insured as provided in this Section.
B. When an insurer is enjoined from transacting insurance business or from disposing of its property under La. Rev. Stat. 22:2006, any and all premiums due the insurer shall be paid to the commissioner of insurance until dissolution or modification of the injunction.
C. When an order directing rehabilitation is issued under La. Rev. Stat. 22:2008, any and all premiums due the insurer shall be paid to the commissioner of insurance until termination, under the provisions of La. Rev. Stat. 22:2008, of the order directing rehabilitation.
D. All contracts of insurance issued by the insurer are cancelled upon issuance of an order, under the provisions of La. Rev. Stat. 22:2008, directing liquidation, and no premium shall be due or payable to the insurer. Such contracts formerly issued by the insurer may be assumed in whole or in part, or upon a modified basis, by a solvent insurer or insurers if approved under the provisions of La. Rev. Stat. 22:2010(D).
E. Upon issuance of an injunction under La. Rev. Stat. 22:2006 or an order of rehabilitation or liquidation under La. Rev. Stat. 22:2008, the commissioner of insurance shall notify every holder of a contract of insurance issued by the insurer of such injunction or order and that payment of premiums shall be made under the provisions of this Section. Such notice shall be mailed to each such policyholder by letter with proof of mailing within ten days after issuance of the injunction or court order of rehabilitation or liquidation.
Acts 1989, No. 697, §1; Acts 1992, No. 1095, §1; Redesignated from La. Rev. Stat. 22:737.1 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.
NOTE: Former La. Rev. Stat. 22:2011 redesignated as La. Rev. Stat. 22:255 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.