GREEN SHEET REDIGEST
HB 585 2021 Regular Session Geymann
INSURANCE/HOMEOWNERS: Provides relative to homeowner's insurance claims
settlement practices
DIGEST
Proposed law provides that an insurer shall issue a copy of the insurer's field adjuster report,
relative to the insured's property damage claim, to the insured within 15 days of receiving a
request for such from the insured.
Present law provides that failure to make payment within 30 days after receipt of such
satisfactory written proofs and demand therefor or failure to make a written offer to settle any
property damage claim, within 30 days after receipt of satisfactory proofs of loss of that
claim, or failure to make such payment within 30 days after written agreement or settlement,
shall subject the insurer to a penalty of 50% damages on the amount found to be due from
the insurer to the insured, or $1,000, whichever is greater, or in the event a partial payment
or tender has been made, 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 provides that in cases of a presidential or
gubernatorially declared disaster failure to make a payment within 30 days after receipt of
satisfactory written proofs and demand or failure to make a written offer to settle any
property damage claim, including a third-party claim, within 30 days after receipt of
satisfactory proofs of loss or failure to make payment within 30 days after written agreement
or settlement when the failure is found to be arbitrary, capricious, or without probable cause,
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 $2,500, whichever is
greater, payable to the insured, or if a partial payment or tender has been made, 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 or $2,500, whichever is greater. Provides that penalties,
if awarded, shall not be used by the insurer in computing either past or prospective loss
experience for the purpose of setting rates or making rate filings.
(Amends R.S. 22:1892(B)(1); adds R.S. 22:1892(A)(5))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the
original bill:
1. Restore the time frames prescribed in present law in which insurers must pay
the amount due on claims, initiate loss adjustment of a property damage
claim and a claim for reasonable medical expenses, and make a written offer
to settle property damage claims.
2. Change the process in proposed law for which insurers shall follow if an
insured provides the insurer with an alternative adjustment with a discrepancy
in damages.
3. Delete proposed law concerning the commissioner being personally liable for
failing to ensure insurers comply with certain provisions of law.
4. Restore the damages amounts a claimant is entitled to in present law when an
insurer breaches certain imposed duties.
Page 1 of 2
Prepared by Thomas L. Tyler. The House Floor Amendments to the engrossed bill:
1. Delete the damage estimate dispute resolution provisions for property damage
claims in proposed law.
2. Make a technical change.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Insurance to the
reengrossed bill
1. Changes bill to provide payment of claims in presidentially or gubernatorially
declared disasters.
Page 2 of 2
Prepared by Thomas L. Tyler.