GREEN SHEET REDIGEST
HB 539 2022 Regular Session Firment
INSURANCE/POLICIES: Provides for property insurance policies.
DIGEST
Present law prohibits persons performing home improvement contracting from engaging in
certain acts.
Proposed law retains present law and prohibits persons or companies 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.
(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.
(4)Sharing legal fees earned by a lawyer.
(5)Requiring an insured from signing an attorney representation agreement.
(6)Accepting fees, commissions, or other valuable considerations in exchange for a
referral by the person or company to an attorney or law firm.
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)-(17) and R.S. 51:452)
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Prepared by Beth O'Quin. 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).
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.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Insurance to the reengrossed
bill
1. Makes technical changes.
2. Prohibits persons or companies from sharing any legal fees earned by a lawyer.
3. Prohibits persons or companies from requiring an insured from signing an
attorney representation agreement.
4. Prohibits persons or companies from accepting fees, commissions, or other
valuable considerations in exchange for an attorney referral.
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Prepared by Beth O'Quin.