Gov. Bobby Jindal issued an executive order giving limited authority to Commissioner of Insurance James J. Donelon to implement emergency insurance rules following Hurricane Gustav.

Emergency rules implemented by the commissioner are effective since Thursday in parishes declared federal disaster areas by President Bush. Iberia, St. Mary and St. Martin parishes are on the list of 43 parishes in the state listed in the declaration.

Donelon said, as part of the executive order, he has issued “emergency rules 24 and 25, retroactive from Aug. 20 and expiring Sept. 30.”

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He said provisions included in these rules are:

• Extensions until Sept. 30 for policyholders in affected areas to pay premiums due on or after Aug. 30 without any late fees, penalties, cancellations or non-renewal.

• Health insurance coverage will include out-of-network medical care and a 30-day supply of medication without penalty. Companies cannot cancel or non-renew any policy of policyholders who reside in listed parishes.

• No policy can be canceled or non-renewed because of a Hurricane Gustav claim.

Emergency insurance rules apply for all types of insurance coverage.

“Emergency rules 24 and 25 require policyholders in the 43 impacted parishes to provide their insurer with written notice in order to qualify for the protection,” Donelon said. “The written notice must detail how the policyholder was impacted, whether by evacuation, displacement, temporary relocation or loss of power.”

Policyholders in affected parishes should also be aware that the Louisiana State Police are cracking down on homeowners insurance fraud which can include creating or enhancing damage to property to meet deductibles, falsifying proof of loss, making false statements to obtain payment or coverage, fabricating or altering receipts to provide proof of ownership and fabricating or altering receipts to increase additional living expenses.

“Insurance fraud is a crime that everyone pays for through increased costs of goods and services, as well as increased insurance premiums,” said Doug Cain, spokesman for the Louisiana State Police. “It is estimated that 11 percent of all disaster claims are fraudulent and that number could be higher. Insurance fraud costs Louisiana policyholders $2.3 billion per year and it costs approximately $200 to $300 per year of an insurance premium to cover the cost of fraudulent claims.”

Cain said insurance fraud is a serious offense, considered a felony for claims greater than $1,000 and carrying a five-year sentence. He also said for fraudulent claims less than $1,000, there is a misdemeanor charge with a six-month penalty.

Cain said everyone should be cautious during this recovery process.