SSHB585 4282 3935
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 585 2021 Regular Session Geymann
INSURANCE/HOMEOW NERS: Provides relative to homeowner's insurance claims
settlement practices
Synopsis of Senate Amendments
1.Restores the present law penalty for insurers who fail to make payment on
claims within 30 days and the present law penalty for insurers who make partial
payments.
2.Provides that in the case of a presidentially or gubernatorially declared disaster,
failure to make payment on a claim or make a written settlement offer within
30 days of receiving proof and demand for such when such failure is arbitrary,
capricious, or without probable cause shall subject the insurer to a penalty of
50% damages on the amount found to be due or $2,500, whichever is greater.
3.Provides that in the case of a presidentially or gubernatorially declared disaster,
if a partial payment on a claim has been made, the insurer shall pay a penalty
to the insured in the amount of 50% of the difference between the amount paid
and the amount due as well as reasonable attorney fees or $2,500, whichever is
greater.
4.Provides that the penalties in proposed law, if awarded, shall not be used by the
insurer in computing past or prospective loss experience for the purpose of
setting rates or making rate filings.
5.Makes technical changes.
Digest of Bill as Finally Passed by Senate
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 presidentially or
gubernatorially declared disaster failure to make payment on a claim or make a written
settlement offer within 30 days of receiving proof and demand for such when such failure
is arbitrary, capricious, or without probable cause shall subject the insurer to a penalty of
50% damages on the amount found to be due or $2,500, whichever is greater.
Proposed law provides that in the case of a presidentially or gubernatorially declared disaster,
if a partial payment on a claim has been made, the insurer shall pay a penalty to the insured
in the amount of 50% of the difference between the amount paid and the amount due as well
as reasonable attorney fees or $2,500, whichever is greater.
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Proposed law provides that the penalties in proposed law, if awarded, shall not be used by
the insurer in computing past or prospective loss experience for the purpose of setting rates
or making rate filings.
Proposed law removes unnecessary language from present law.
(Amends R.S. 22:1892(B)(1); Adds R.S. 22:1892(A)(5))
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