Policy Assignments Can Be Barred: La. High Court

Law360, New York (May 11, 2011, 8:35 PM EDT) -- The Supreme Court of Louisiana ruled Tuesday that insurance policies can prohibit assignments made after a loss has accrued as long as they clearly say the ban applies to post-loss transfers of policies.

Ruling on a certified question from the Fifth Circuit, the court said no state law or regulation precluded an anti-assignment clause from applying to the post-loss assignment of all or part of an insurance policy without the insurer’s consent, provided the policy was unambiguous.

The decision will guide federal multidistrict litigation proceedings brought...
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