Authorizes and directs the Louisiana State Law Institute to study certain aspects regarding actions for violations of the duty of good faith and fair dealings under insurance policies
If successfully enacted, HCR89 would pave the way for a clearer understanding and potentially reform of the legal framework surrounding insurance claims in Louisiana. By addressing the disparities in how prescription laws are applied, the resolution seeks to benefit both insurers and insured individuals by providing more definitive guidelines. Additionally, the research could inform future legislative action to amend or create laws that enhance the rights of policyholders and ensure fair dealings by insurance companies.
HCR89 is a House Concurrent Resolution that urges the Louisiana State Law Institute to study laws concerning the duty of good faith and fair dealing owed by insurance companies to their insured clients. It aims to clarify the prescriptive periods applicable to claims of such violations, which is currently a matter of litigation in Louisiana courts. There is a significant need for certainty regarding how these cases are managed, given the potential for varying prescriptive periods based on whether a claim is treated as a tort or under contract law. This resolution requests a comprehensive report on the situation by February 1, 2019.
The sentiment surrounding HCR89 appears to be generally supportive among legislators who recognize the complexities faced by insured individuals when pursuing claims against insurance companies. There is a consensus regarding the need for clarity in the application of the law, which is often clouded by litigation. However, some stakeholders may express concern over any fundamental changes to established practices in the insurance sector, emphasizing a cautious approach to reforms.
Notable points of contention may arise from the balance between protecting consumer rights and ensuring that insurance providers are not unduly burdened. The study might uncover discrepancies with existing laws that could necessitate changes in how insurance policy violations are treated legally. Furthermore, the resolution invites discussion on broader implications for insurance regulation in Louisiana, which might lead to various perspectives regarding the definition and enforcement of the duty of good faith and fair dealing.