DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 457 Reengrossed 2021 Regular Session Firment
Abstract: Provides for claims adjusters.
Present law provides for certain standards of conduct for claims adjusters including:
(1)An adjuster shall not permit an unlicensed employee or his representative to conduct business
for which a license is required.
(2)An adjuster shall not have a financial interest in any aspect of the claim, other than the salary,
fee, or other consideration established with the insurer.
(3)An adjuster shall not acquire any interest in salvage of property subject to the contract with
the insurer.
(4)An insurer shall not solicit employment for any attorney, contractor, or subcontractor in
connection with any loss the adjuster is concerned or employed.
(5)An adjuster shall not solicit or accept compensation from any contractor or subcontractor on
behalf of any insured for which the adjuster is employed.
(6)An adjuster shall not undertake the adjustment of any claim if the adjuster is not competent
or knowledgeable.
(7)An adjuster shall not knowingly make a material misrepresentation intended to injure any
person engaged in the business of insurance.
(8)An adjuster shall not represent or act as a public adjuster.
(9)An adjuster shall not materially misrepresent the terms and coverage of an insurance contract
to an insured for the purpose of effecting settlement of a claim on less favorable terms than
those provided in the insurance contract.
Proposed law repeals present law and codifies some of the provisions of present law (R.S. 22:1674).
Proposed law defines the terms "client", "department", and "person".
Proposed law provides standards of conduct for claims adjusters including: (1)An adjuster shall not have a direct or indirect financial interest in any aspect of the claim,
other than the salary, fee, or other consideration established with the insurer.
(2) An adjuster shall not acquire any interest in salvage of property subject to the contract with
the insurer.
(3)An adjuster shall not solicit employment for, recommend, or otherwise solicit engagement
for any attorney, contractor, or subcontractor, in connection with any loss or damage for
which the adjuster is employed or concerned.
(4)An adjuster shall not solicit or accept any compensation from, by, or on behalf of any
contractor or subcontractor engaged by or on behalf of any insured by which such adjuster
has been, is, or will be employed or compensated.
(5)An adjuster shall treat all claimants fairly.
(6)An adjuster shall not approach investigations, adjustments, and settlements in a manner
prejudicial to the insured.
(7)An adjuster shall make truthful and unbiased reports of the facts after completing a thorough
investigation.
(8)An adjuster shall handle every adjustment and settlement with honesty and integrity.
(9)An adjuster shall act with due diligence in achieving a proper disposition of the claim.
(10)An adjuster shall promptly report violations of any provision of the Insurance Code.
(11)An adjuster shall exercise extraordinary care when dealing with elderly claimants.
(12)An adjuster shall not negotiate or effect settlement with any third-party claimant represented
by an attorney, except with the consent of the attorney.
(13)An adjuster shall avoid any suggestion calculated to induce a witness to suppress or deviate
from the truth.
(14)An adjuster shall not advise a claimant to refrain from seeking legal advice, nor advise
against the retention of counsel to protect the claimant’s interest.
(15)An adjuster shall not knowingly make any oral or written misrepresentation or statement in
regards to applicable policy provisions, contract conditions, or pertinent state laws.
(16)An adjuster shall not undertake the adjustment of any claim that exceeds the adjuster’s
current expertise. (17)An adjuster shall not permit an unlicensed employee or representative of the adjuster to
conduct business for which a license is required under this Part.
(18)An adjuster shall not act as a public adjuster.
(19)An adjuster shall not materially misrepresent to an insured or other interested party the terms
and coverage of an insurance contract.
Proposed law requires claims adjusters to read and acknowledge the claims adjuster standards of
conduct upon license issuance and upon license renewal.
Proposed law provides that violation of the claims adjuster standards and conduct shall constitute
grounds for administrative action against the licensee and committed an unfair trade practice.
Present law provides that a person employed only to furnish technical assistance to a licensed
adjuster, including but not limited to an investigator, an attorney, an engineer, an estimator, a
handwriting expert, a photographer, and a private detective, is exempt from the present law
provisions of Part IV of Chapter 5 of Title 22 of the Louisiana Revised Statutes of 1950 regarding
claims adjusters.
Proposed law retains present law and provides that the exception provided in present law does not
apply to engineers, estimators, or building consultants engaged in the investigation of a residential
or commercial claim involving reported damage to a covered structure caused by perils of hurricane,
flood, windstorm, hail, or tornado.
Proposed law makes technical changes.
(Amends R.S. 22:1662(3); Adds R.S. 22:1674.1; Repeals R.S. 22:1674)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the original bill:
1. Revise proposed law standards of conduct for claims adjusters.
2. Provide that engineers, estimators, and building consultants investigating certain perils
are not included in the exemption in present law.
3. Change that a claims adjuster who violates the claims adjuster standards of conduct is
considered to have violated unfair claim settlement practices law to a claims adjuster
who violates the standards of conduct is considered to have committed an unfair trade
practice.
4. Make technical changes. The House Floor Amendments to the engrossed bill:
1. Clarify that engineers, estimators, and building consultants investigating certain perils
are not included in the exemption in present law.
2. Make technical changes.