Louisiana HB 678: INSURANCE: Provides relative to fair claims settlement practices

Bill Text

HLS 24RS-931 ORIGINAL
2024 Regular Session
HOUSE BILL NO. 678
BY REPRESENTATIVE FIRMENT
INSURANCE: Provides relative to fair claims settlement practices
1 AN ACT
2 To enact Part IV of Chapter 6 of Title 22 of the Louisiana Revised Statutes of 1950, to be
3 comprised of R.S. 22:1899.1 through 1899.12, relative to claims settlement practices
4 of immovable property claims; to provide for applicability; to provide for notice of
5 a claim; to provide for acceptance or rejection of claims; to provide for payment of
6 claims; to provide for delays in payment; to provide for penalties; to provide for
7 presuit notices; to provide for inspections of property; to provide for prematurely
8 filed actions; to provide for agent liability; to provide for attorney fee awards; and
9 to provide for related matters.
10 Be it enacted by the Legislature of Louisiana:
11 Section 1. Part IV of Chapter 6 of Title 22 of the Louisiana Revised Statutes of 1950,
12 comprised of R.S. 22:1899.1 through 1899.12, is hereby enacted to read as follows:
13 PART IV. IMMOVABLE PROPERTY INSURANCE CLAIMS PAYMENTS
14 §1899.1. Applicability; exclusive remedy; immovable property
15 A. The provisions of this Part provide for the exclusive remedy applicable
16 to claims arising out of an insurance policy that covers immovable property,
17 including but not limited to manufactured and modular homes as defined in R.S.
18 51:911.22.
19 B. The provisions of R.S. 22:1892 and R.S. 22:1973 and penalties contained
20 therein do not apply to actions brought pursuant to this Part.
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CODING: Words in struck through type are deletions from existing law; words underscored
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HLS 24RS-931 ORIGINAL
HB NO. 678
1 §1899.2. Receipt of notice of claim
2 A. Within fifteen days of receipt of notice of a claim, or thirty business days
3 for eligible surplus lines insurers, the insurer shall do all of the following:
4 (1) Acknowledge receipt of the claim.
5 (2) Commence investigation of the claim.
6 (3) Request from the claimant all items, statements, and forms that the
7 insurer reasonably believes, at that time, will be required from the claimant.
8 (4) Provide necessary claim forms, instructions, and reasonable assistance
9 to first-party claimants, including forms for filing proof of loss.
10 B. An insurer may make additional requests for information if during the
11 investigation of the claim the additional requests are necessary.
12 C. If acknowledgment of receipt of a claim is not made in writing, the
13 insurer shall make a record of the date, manner, and content of the acknowledgment.
14 D. The deadlines provided in this Section shall be extended by forty-five
15 days in the event of a declaration by the commissioner of a catastrophe and may
16 further be extended by the commissioner with the consent of the chairman of the
17 House Committee on Insurance and the chairman of the Senate Committee on
18 Insurance, if circumstances warrant further extension.
19 §1899.3. Notice of acceptance or rejection of claim
20 A. Except as provided in Subsections B and D of this Section, an insurer
21 shall notify a claimant in writing of the acceptance or rejection of a claim within
22 fifteen business days of the insurer receiving all items, statements, and forms
23 required by the insurer to secure final proof of loss. In the event of a catastrophe
24 declared by the commissioner, the deadline provided in this Subsection shall be
25 extended to forty-five days of the insurer receiving all items, statements, and forms
26 required by the insurer to secure final proof of loss.
27 B. If an insurer has a reasonable basis to believe that a loss resulted from
28 arson, the insurer shall notify the claimant in writing of the acceptance or rejection
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.

HLS 24RS-931 ORIGINAL
HB NO. 678
1 of the claim within thirty days of the insurer receiving all items, statements, and
2 forms required by the insurer.
3 C. If an insurer rejects a claim, the insurer shall state the reasons for the
4 objection in the notice required pursuant to this Section.
5 D. If an insurer is unable to accept or reject a claim within the period
6 applicable pursuant to this Section, the insurer, within that same period, shall notify
7 the claimant of the reasons that the insurer needs additional time. The insurer shall
8 accept or reject the claim within forty-five days of the insurer sending the claimant
9 notice of the reasons the insurer needed additional time.
10 E. The time periods provided in this Section shall be tolled if the
11 policyholder fails to provide material claims information requested within ten days
12 following the request, if the request is made at least fifteen days before the insurer
13 is required to pay or deny the claim. The time periods provided in this Section shall
14 also be tolled during any statutory mediation proceeding or any alternative dispute
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