HLS 22RS-275 REENGROSSED
2022 Regular Session
HOUSE BILL NO. 539
BY REPRESENTATIVE FIRMENT
INSURANCE/POLICIES: Provides for property insurance policies
1 AN ACT
2To amend and reenact R.S. 51:451(A) and to enact R.S. 37:2175.3(A)(12) through (14) and
3 R.S. 51:452, relative to property insurance; to prohibit contractors from engaging in
4 certain acts related to an insured's property insurance claim; to prohibit sellers of
5 goods and services from assisting in paying an insured's deductible; to provide
6 contract language advising insureds of their duty to pay their property insurance
7 deductible; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 37:2175.3(A)(12) through (14) is hereby enacted to read as follows:
10 §2175.3. Home improvement contracting; prohibited acts; violations
11 A. The following acts are prohibited by persons performing home
12 improvement contracting services:
13 * * *
14 (12) Interpreting insurance policy provisions regarding coverage or duties
15 under an insured's property insurance policy. A contractor shall be considered to
16 have violated the provisions of this Paragraph if a person working on behalf of the
17 contractor including but not limited to a compensated employee or a nonemployee
18 who is compensated by the contractor violates the provisions of this Paragraph.
19 (13) Adjusting a property insurance claim on behalf of an insured as an
20 adjuster, as defined in R.S. 22:1661. A contractor shall be considered to have
21 violated the provisions of this Paragraph if a person working on behalf of the
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1 contractor including but not limited to a compensated employee or a nonemployee
2 who is compensated by the contractor violates the provisions of this Paragraph.
3 (14) Providing an insured with an agreement authorizing repairs without
4 providing a good faith estimate of the itemized and detailed costs of services and
5 materials for repairs undertaken pursuant to a property damage claim. A contractor
6 shall be considered to have violated the provisions of this Paragraph if a person
7 working on behalf of the contractor including but not limited to a compensated
8 employee or a nonemployee who is compensated by the contractor violates the
9 provisions of this Paragraph. A contractor does not violate this Paragraph if, as a
10 result of the insurer adjusting a claim, the actual cost of repairs differs from the
11 initial estimate.
12 * * *
13 Section 2. R.S. 51:451(A) is hereby amended and reenacted and R.S. 51:452 is
14hereby enacted to read as follows:
15 §451. Payments and rebates charged against insurance deductibles; sellers of goods
16 or services prohibited
17 A. No person selling or engaged in the sale of goods or services shall:
18 (1) Advertise or promise to provide goods or services. Provide goods or
19 services or advertise or promise to provide goods or services to an insured in a
20 transaction in which the goods or services will be paid for by the insured from the
21 proceeds of the property insurance claim and, without the insurer's consent, the
22 person selling the goods or services agrees to do any of the following:
23 (a) Pay, waive, absorb, or otherwise decline to charge or collect the amount
24 of the insured's deductible.
25 (b) Provide a rebate in connection with the sale of the goods or services that
26 will offset all or part of the amount paid by the insured as a deductible.
27 (c) In any manner, assist the insured in avoiding monetary payment of the
28 insured's deductible.
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HB NO. 539
1 (2) Offer to pay, pay, or rebate all or part of any insurance deductible, under
2 a property or casualty insurance policy, to a consumer as part of any arrangement for
3 goods and services paid for by the consumer from proceeds of a property or casualty
4 insurance policy.
5 (3) Charge an amount, for such goods or services, that exceeds the usual and
6 customary charge by an amount equal to or greater than all or part of the applicable
7 insurance deductible paid.
8 * * *
9 §452. Contract paid with insurance policy proceeds; notice required
10 A contract to provide goods or services that is reasonably expected to be paid
11 wholly or partly with the proceeds from a claim under a property insurance policy
12 and has a contract price of one thousand dollars or more shall contain the following
13 notice in at least twelve-point boldfaced type: "Louisiana law requires a person
14 insured under a property insurance policy to pay any deductible applicable to a claim
15 made under the policy. It is a violation of Louisiana law for a seller of goods or
16 services who reasonably expects to be paid wholly or partly from the proceeds of a
17 property insurance claim to knowingly allow the insured person to fail to pay, or
18 assist in the insured person's failure to pay the applicable insurance deductible."
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 539 Reengrossed 2022 Regular Session Firment
Abstract: Provides for property insurance policies.
Present law prohibits persons performing home improvement contracting from engaging in
certain acts.
Proposed law retains present law and prohibits persons performing home improvement
contracting from engaging in the following acts:
(1)Interpreting insurance policy provisions regarding coverage or duties under an
insured's property insurance policy.
(2)Adjusting a property insurance claim on behalf of an insured.
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HB NO. 539
(3)Providing an insured with an agreement authorizing repairs without providing a good
faith estimate of the itemized and detailed cost of services and materials for repairs
undertaken pursuant to a property damage claim.
Present law provides that no person selling or engaging in the sale of goods or services shall
advertise or promise to provide goods or services or offer to pay, pay, or rebate any part of
an insurance deductible as part of an arrangement for goods and services paid for with
proceeds from an insurance policy.
Proposed law repeals present law and provides that no person selling or engaging in the sale
of goods or services shall provide a good or service or advertise or promise to provide goods
or services to an insured in a transaction in which the good or service will be paid for with
proceeds of a property insurance claim and the person selling the good or service, without
the insurer's consent, will do any of the following:
(1)Pay, waive, absorb, or otherwise decline to charge or collect the amount of the
insured's deductible.
(2)Provide a rebate in connection with the sale of a good or service that will offset all
or part of the amount paid by the insured as a deductible.
(3)In any manner, assist the insured in avoiding monetary payment of the required
insurance deductible.
Proposed law provides language for a notice that shall be included in contracts to provide
a good or service that is reasonably expected to be paid with proceeds from a claim under
an insurance policy.
(Amends R.S. 51:451(A); Adds R.S. 37:2175.3(A)(12)-(14) and R.S. 51:452)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the
original bill:
1. Remove provisions of proposed law regarding the adjustment and settlement of
first-party loss based on repair or replacement costs.
2. Provide that a violation of proposed law (R.S. 37:2175.3(A)(12) and (13)) shall
be considered an unfair trade practice and provides the penalties for violation of
proposed law.
3. Remove an exception from proposed law (R.S. 37:2175.3(A)(13)) for contractors
who have a public adjuster license.
4. Make technical changes.
The House Floor Amendments to the engrossed bill:
1. Restore present law (R.S. 22:1964 and R.S. 37:2175.3(B)).
2. Provide that persons performing home improvement contracting services shall
not interpret insurance policy provisions regarding coverage or duties under an
insured's property insurance policy.
3. Provide that persons performing home improvement contracting services shall
not adjust a property insurance claim on behalf of an insured as an adjuster, as
defined in present law (R.S. 22:1661).
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4. Provide that persons selling or engaging in the sale of goods or services shall not
provide a rebate in connection with the sale of the goods or services that will
offset the amount paid by the insured as a deductible, if the goods or services are
paid with proceeds of a property insurance claim and the person does not have
consent to do such from the insurer.
5. Make technical changes.
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