Louisiana HB 831: INSURANCE/PROPERTY: Prohibits certain pricing practices in property damage claims (OR INCREASE OF EX See Note)

Bill Text

HLS 26RS-1113 ORIGINAL
2026 Regular Session
HOUSE BILL NO. 831
BY REPRESENTATIVE FIRMENT
INSURANCE/PROPERTY: Prohibits certain pricing practices in property damage claims
1 AN ACT
2 To enact R.S. 22:1930 and 1930.1, and R.S. 37:2160.1, relative to prohibited pricing
3 practices in property damage claims; to prohibit charging different prices for the
4 same product or service based solely on insurer payment in property damage claims;
5 to designate such practices as fraudulent insurance acts; to provide for exceptions,
6 including preferred vendor programs; to prohibit insurers from engaging in
7 inconsistent or selective application of pricing sources when relying on a primary
8 estimating tool or database in adjusting property damage claims; to designate such
9 practices, when committed with such frequency as to indicate a general business
10 practice, as unfair methods of competition and unfair or deceptive acts or practices
11 in the business of insurance; to provide for penalties; to provide for applicability to
12 licensed contractors; and to provide for related matters.
13 Be it enacted by the Legislature of Louisiana:
14 Section 1. R.S. 22:1930 and 1930.1 are hereby enacted to read as follows:
15 §1930. Prohibited pricing practices in property damage claims; offense
16 A. This Section applies only to claims for property damage under a policy
17 of property and casualty insurance, excluding automobile or health insurance claims.
18 B. A person commits an offense if:
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.

HLS 26RS-1113 ORIGINAL
HB NO. 831
1 (1) The person knowingly or intentionally charges two different prices for
2 providing a substantially similar scope of work under comparable conditions in
3 connection with a property damage claim, and
4 (2) The higher price charged is based primarily on the fact that an insurer
5 will pay all or part of the price of the product or service.
6 C. This Section does not apply to:
7 (1) Prices or rates established pursuant to a written contract or agreement
8 between the person providing the product or service and the insurer including but not
9 limited to preferred vendor programs, managed repair networks, or other negotiated
10 arrangements where the insurer and provider have agreed to specific pricing terms
11 in exchange for volume, quality assurances, or other considerations.
12 (2) Adjustments to prices based on verifiable differences in the scope of
13 work, materials, labor, or other factors not primarily related to insurer involvement.
14 D. An offense pursuant to this Section is a fraudulent insurance act pursuant
15 to R.S. 22:1923 and the violator shall be subject to the additional penalties,
16 enforcement, and reporting requirements provided in this Part, including referral to
17 the commissioner for administrative action, such as license suspension or revocation,
18 and civil penalties as authorized pursuant to R.S. 22:1924.
19 E. The commissioner may adopt rules pursuant to the Administrative
20 Procedure Act to implement the provisions of this Section, including guidelines for
21 distinguishing prohibited practices from legitimate negotiated arrangements.
22 F. Nothing in this Section shall be construed to create or imply a private
23 cause of action.
24 §1930.1. Inconsistent or selective pricing by insurers in property damage claims;
25 unfair methods of competition and unfair or deceptive acts or practices
26 A. This Section applies only to claims for property damage under a policy
27 of property and casualty insurance, excluding claims under automobile insurance
28 policies or health insurance policies.
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CODING: Words in struck through type are deletions from existing law; words underscored
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HLS 26RS-1113 ORIGINAL
HB NO. 831
1 B. Committing or performing with such frequency as to indicate a general
2 business practice any of the following shall be an unfair method of competition and
3 an unfair or deceptive act or practice in the business of insurance pursuant to R.S.
4 22:1964:
5 (1) Relying primarily on a pricing database, estimating software, or similar
6 tool for determining repair or replacement costs in adjusting a property damage
7 claim; and
8 (2) Materially and inconsistently deviating from the database or tool by
9 applying lower pricing from alternative sources, without consistent application or
10 without documented justification based on verifiable market data, such as
11 comparable local quotes or supplier pricing applicable to the claim location and
12 scope of work.
13 C. This Section shall not prohibit:
14 (1) Adjustments to claim estimates based on independent appraisals,
15 engineering reports, verifiable local market conditions, or other relevant evidence.
16 (2) Use of preferred vendor programs or negotiated rates as provided in R.S.
17 22:1930(C), provided such programs apply consistent pricing methodologies.
18 (3) Good faith