HLS 21RS-924 ENGROSSED
2021 Regular Session
HOUSE BILL NO. 469
BY REPRESENTATIVE LARVADAIN
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
INSURANCE/HOMEOW NERS: Provides relative to homeowner's insurance claims
settlement practices
1 AN ACT
2To amend and reenact R.S. 22:1892(B)(1), relative to homeowner's insurance claims
3 settlement practices; to provide for penalties for insurers failing to provide timely
4 payment on claims; and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 22:1892(B)(1) is hereby amended and reenacted to read as follows:
7 ยง1892. Payment and adjustment of claims, policies other than life and health and
8 accident; personal vehicle damage claims; extension of time to respond to
9 claims during emergency or disaster; penalties; arson-related claims
10 suspension
11 * * *
12 B.(1) Failure to make such payment within thirty days after receipt of such
13 satisfactory written proofs and demand therefore therefor or failure to make a written
14 offer to settle any property damage claim, including a third-party claim, within thirty
15 days after receipt of satisfactory proofs of loss of that claim, as provided in
16 Paragraphs (A)(1) and (4) of this Section, respectively, or failure to make such
17 payment within thirty days after written agreement or settlement as provided in
18 Paragraph (A)(2) of this Section when such failure is found to be arbitrary,
19 capricious, or without probable cause, shall subject the insurer to a penalty, in
20 addition to the amount of the loss, of fifty percent damages on the amount found to
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CODING: Words in struck through type are deletions from existing law; words underscored
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HB NO. 469
1 be due from the insurer to the insured, or one thousand dollars an amount not to
2 exceed two times the damages sustained or five thousand dollars, whichever is
3 greater, payable to the insured, or to any of said employees, or in the event a partial
4 payment or tender has been made, fifty percent two times of the difference between
5 the amount paid or tendered and the amount found to be due as well as reasonable
6 attorney fees and costs. Such penalties, if awarded, shall not be used by the insurer
7 in computing either past or prospective loss experience for the purpose of setting
8 rates or making rate filings.
9 * * *
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 469 Engrossed 2021 Regular Session Larvadain
Abstract: Provides for homeowner's insurance claims settlement practices.
Present law provides that failure to make payment on a claim within the time frame provided
in present law shall subject the insurer to a penalty, in addition to the amount of the loss, of
50% damages on the amount found to be due from the insurer to the insured, or $1,000
payable to the insured.
Proposed law retains present law but changes the penalty from 50% damages on the amount
found to be due from the insurer to the insured, or $1,000 payable to the insured to an
amount not to exceed twice the damages sustained or $5,000, whichever is greater.
Present law provides that in the event a partial payment or tender has been made, the insurer
shall be subject to a penalty of 50% of the difference between the amount paid or tendered
and the amount found to be due as well as reasonable attorney fees and costs.
Proposed law retains present law but changes the penalty from 50% of the difference
between the amount paid or tendered and the amount found to be due as well as reasonable
attorney fees and costs to twice the amount found to be due as well as reasonable attorney
fees and costs.
(Amends R.S. 22:1892(B)(1))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the
original bill:
1. Restore present law concerning insurers making payment on claims within 30
days after the receipt of satisfactory proofs of loss from the insured or any party
in interest.
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HB NO. 469
2. Restore present law concerning insurer's good faith duty in claims settlement
practices and the penalties for acting in bad faith.
3. Make technical changes.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.