Louisiana Legislative Update

Louisiana Legislative Update

The Louisiana legislature recently amended its Louisiana Insurance Code related to certificates of insurance and their use by lenders.  It also amended its laws regarding mortgage and conveyance records and the Louisiana Condominium Act (the “Act”).  All the legislation discussed in this memorandum is effective August 1, 2016.




The law provides that no person, wherever located, may prepare, issue, or request the issuance of a certificate of insurance for risks located in Louisiana unless the certificate is issued on standard certificate of insurance forms promulgated by the insurer, the Association for Cooperative Operations Research and Development (“ACORD”), the American Association of Insurance Services (“AAIS”), or the Insurance Services Office (“ISO”).


No person may request an insurance producer to prepare or issue, either in addition to or in lieu of a certificate of insurance, an opinion letter or other document or correspondence, instrument, or record, including an electronic record.


A certificate of insurance may list only the specific forms or endorsements contained in the underlying contracts of insurance.  No certificate holder or other interested party may require an interpretation of those forms or endorsements from the insurance agent.


Lenders, however, are exempt from the limitations listed above.  In addition, a Lender may request that an insurer or insurance producer prepare or issue an addendum that clarifies, explains, summarizes, or provides a statement of the coverages provided by a policy of insurance and otherwise complies with the law.  Lenders may also require or request certificates of insurance from a policyholder.


“Lender” means an individual, partnership, corporation, limited liability company, association, federally insured depository institution, or other entity, agent, loan agent, servicing agent, or loan or mortgage broker, who makes, owns, or services a loan.




If a condominium association files a lien based on the privilege on immovables and the lien is for an amount of the assessment or dues secured by the privilege allowed that is not owed, in whole or in part, and any owner or interest holder of the condominium affected by the privilege files suit to obtain a complete or partial release of such lien or privilege, then in such event the condominium association filing the lien will be liable to the owner or interest holder in the condominium for the expenses of obtaining the release, in whole or in part, including reasonable attorney fees and all associated costs.


A claim of privilege on immovable that is recorded preserves the privilege against the condominium parcel for a period of five years (previously one year) from date of recordation.