SSHB457 4282 3579
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 457 2021 Regular Session Firment
INSURANCE CLAIMS-ADJUSTR: Provides for claims adjusters
Synopsis of Senate Amendments
1.Removes the provision in proposed law that would subject engineers,
estimators, and building consultants in certain circumstances to claims adjuster
licensure and the claims adjuster code of conduct.
2.Provides that persons employed by or contracted with an insurer only to furnish
technical assistance to a licensed adjuster shall be subject to certain good faith
duties.
3.Changes the standard of care for adjusters dealing with elderly claimants from
"extraordinary" to "appropriate."
4.Provides that violation of the claims adjuster code of conduct does not create
any civil action, create or support any cause of action, or establish any penalty
other than those provided in proposed law.
Digest of Bill as Finally Passed by Senate
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 provides standards of conduct for claims adjusters including:
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(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 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
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constitute grounds for administrative action against the licensee and committed an unfair
trade practice.
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.
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 makes technical changes.
(Amends R.S. 22:1662(3); Adds R.S. 22:1674.1; Repeals R.S. 22:1674)
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