GREEN SHEET REDIGEST
HB 457 2021 Regular Session Firment
INSURANCE CLAIMS-ADJUSTR: P rovides for claims adjusters
DIGEST
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.
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Prepared by Thomas L. Tyler. (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 appropriate 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 all persons employed by or contracted with
an insurer and exempted under present law are subject to the good faith duties as relates to
good faith duties and claims settlement practices in the Insurance Code (R.S. 22:1973).
Proposed law provides violations of proposed law does not create any civil action, create or
support any cause of action, or establish any penalty not otherwise provided in proposed law.
Proposed law makes technical changes.
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Prepared by Thomas L. Tyler. (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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Insurance to the
reengrossed bill
1. Adds provision that adjuster exercise appropriate care when dealing with
elderly claimants.
2. Adds provision that persons employed by or contracted with an insurer and
exempted are still subject to the good faith duties as relates to good faith
duties and claims settlement practices in the Insurance Code.
3. Adds provisions that violations of proposed law does not create any civil
action, create or support any cause of action, or establish any penalty not
otherwise provided in proposed law.
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Prepared by Thomas L. Tyler.