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 Engrossed 2022 Regular Session Firment
Abstract: Provides for property insurance policies.
Present law provides certain conduct that is considered to be an unfair method or competition and
unfair or deceptive act or practice in the business of insurance.
Proposed law retains present law and provides that violation of proposed law (R.S. 37:2175.3(A)(12)
and (13)) shall be considered to be an unfair method or competition and unfair or deceptive act or
practice in the business of insurance.
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 or advising an insured regarding coverage or duties
under the insured's property insurance policy.
(2)Adjusting a property insurance claim on behalf of an insured.
(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.
Proposed law provides that in addition to administrative sanctions, violation of proposed law (R.S.
37:2175.3(A)(12) and (13)) shall constitute an unfair trade practice, and the penalties contained in
present law (R.S. 22:1969) may be enforced by the commissioner of insurance.
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 or credit 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. 22:1964(A)(31), R.S. 37:2175.3(A)(12)-(14) and (B)(3), 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.