SSHB539 4282 5318
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 539 2022 Regular Session Firment
INSURANCE/POLICIES: Provides for property insurance policies
Synopsis of Senate Amendments
1.Provides that the prohibition on certain acts for persons performing home
improvement contracting services in present law also applies to companies
performing home improvement contracting services.
2.Prohibits persons and companies performing home improvement contracting
services from sharing in any legal fee earned by an attorney.
3.Prohibits persons and companies performing home improvement contracting
services from requiring an insured to sign an attorney representation agreement
on behalf of an attorney.
4.Prohibits persons and companies performing home improvement contracting
services from accepting a fee, commission, or other valuable consideration in
exchange for a referral to an attorney or law firm.
5.Prohibits persons and companies performing home improvement contracting
services from accepting an assignment of any rights, benefits, proceeds, or
causes of action of an insured prior to completing the work described in the
contract and the insurer conducting its initial examination of the damage.
Digest of Bill as Finally Passed by Senate
Present law prohibits persons performing home improvement contracting from engaging in
certain acts.
Proposed law retains present law, applies the prohibition to companies performing home
improvement contracting services, and prohibits persons or companies performing home
improvement contracting services 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.
(7)Accepting an assignment of any rights, benefits, proceeds, or causes of action of an
insured prior to completing the work described in the contract and the insurer
conducting its initial examination of the damage.
Present law provides that no person selling or engaging in the sale of goods or services shall
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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)-(18) and R.S. 51:452)
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