To encourage coverage, Louisiana Insurance Commissioner Release Bulleting 2021-07 regarding Hurricane Ida Civil Authority & Loss Of Use Coverage.
TO: ALL AUTHORIZED INSURERS, SURPLUS LINES INSURERS, AND HEAL TH MAINTENANCE ORGANIZATIONS
FROM: JAMES J. DONELON, COMMISSIONER OF INSURANCE
RE: HURRICANE IDA CIVIL AUTHORITY ORDERS AND LOSS OF USE COVERAGE
DATE: SEPTEMBER 3, 2021
The purpose of Bulletin 2021-07 is to remind all authorized insurers, surplus lines
insurers, and health maintenance organizations (hereinafter jointly referred to as
“insurers”) who write insurance coverage in Louisiana to abide by the legislative intent
of La. R.S. 22:41(4) that policyholders shall have the right to be treated fairly. Insurers
should honor the spirit and intent of their policy language when evaluating additional
expenses incurred by the insured due to the loss of use of their premises following the
issuance, or lack thereof, of a civil authority order as a result of Hurricane Ida.
Seventy-four hours elapsed between the time the National Hurricane Center
issued its first advisory about the formation of Tropical Depression Nine and when
Hurricane Ida struck Louisiana with winds up to 150 mph. Hurricane Ida formed and
intensified so rapidly that many civil authorities were not able to issue mandatory
evacuation orders directing their citizens to leave. Nonetheless, many policyholders
correctly recognized that Hurricane Ida posed an imminent threat to their lives and took
the appropriate steps to evacuate.
In support of his effort to assist victims of Hurricane Ida, I join President Biden in
urging insurers to forgo the use of policy language restricting insurance coverage only
to areas subjected to a mandatory evacuation order. Public officials were facing a
devastating hurricane event on short notice and chose not to use mandatory evacuation
orders out of concern that attempts to comply with such an order would significantly
jeopardize the safety and welfare of their citizens in their attempt to get out of harm’s
I urge and request that all insurers evaluate civil authority prohibited use claims
filed by their policyholders without regard to whether mandatory evacuations were
issued as a result of Hurricane Ida. I also urge and request that all insurers interpret
their policyholders’ evacuation broadly and process claims made for loss of use filed by
policyholders and treat them fairly as required by law.
In furtherance of this request, insurers should waive the language contained in
their insurance policies requiring mandatory evacuation to trigger civil authority
coverage. This request is limited to the 25 parishes listed in my previously issued
Emergency Rule 47 (see attached). However, all other provisions relative to insurance
coverage for civil authority prohibited use contained in insurers’ policies remain in effect
All insurers shall notify me of their decision to abide by Bulletin 2021-07 so that
I can monitor adherence to this request when fielding consumer complaints.
Any questions or concerns regarding Bulletin 2021-07 should be directed to the
Louisiana Department of Insurance, Office of Property and Casualty, at
Baton Rouge, Louisiana, the 3rd day of September 2021 .
JAMES J. DONELON
COMMISSIONER OF INSURANCE