HLS 22RS-1956 ORIGINAL
2022 Regular Session
HOUSE BILL NO. 999
BY REPRESENTATIVE FIRMENT
INSURANCE CLAIMS-ADJUSTR: Provides for public adjusters
1 AN ACT
2To amend and reenact R.S. 22:1704(H) and 1706(H) and to enact R.S. 22:1704(E)(6)
3 through (9) and 1706(I) through (Q), relative to public adjusters; to provide for
4 certain disclosure; to provide for standards of conduct; to provide for prohibitions;
5 to provide for penalties; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 22:1704(H) and 1706(H) are hereby amended and reenacted and R.S.
822:1704(E)(6) through (9) and 1706(I) through (Q) are hereby enacted to read as follows:
9 §1704. Contract between public adjuster and insured
10 * * *
11 E. Prior to the signing of the contract, the public adjuster shall provide the
12 insured with a separate disclosure document regarding the claim process that states:
13 * * *
14 (6) The following notice in at least 12-point boldfaced type: "Louisiana law
15 requires a person insured under a property insurance policy to pay any deductible
16 applicable to a claim made under the policy. It is a violation of Louisiana law for a
17 seller of goods or services who reasonably expects to be paid wholly or partly from
18 the proceeds of a property insurance claim to knowingly allow the insured person to
19 fail to pay the applicable insurance deductible or assist in the insured person's failure
20 to pay the applicable insurance deductible."
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HB NO. 999
1 (7) The public adjuster shall not participate directly or indirectly in the
2 reconstruction, repair, or restoration of damaged property that is the subject of a
3 claim adjusted by the public adjuster or engage in any other activities that may
4 reasonably be construed as presenting a conflict of interest, including soliciting or
5 accepting any remuneration from or having a financial interest in any salvage firm,
6 repair firm, or other firm that obtains business in connection with any claim the
7 public adjuster has a contract or agreement to adjust.
8 (8) The insured has the right to rescind the contract within ten business days
9 after the date the contract was signed. The rescission shall be in writing and mailed
10 or delivered to the public adjuster at his address, as provided in the contract, within
11 the ten business day period.
12 (9) The following notice in at least 12-point boldfaced type: "Any person who
13 knowingly presents a false or fraudulent claim for payment of a loss or benefit or
14 knowingly presents false information in an application for insurance is guilty of a
15 crime and may be subject to fines and confinement in prison."
16 * * *
17 H. The insured has the right to rescind the contract within three ten business
18 days after the date the contract was signed. The rescission shall be in writing and
19 mailed or delivered to the public adjuster at the his address, in as provided in the
20 contract, within the three ten business day period.
21 * * *
22 §1706. Standards of conduct of public adjuster; prohibitions
23 * * *
24 H. A public adjuster shall not offer a residential property owner a rebate,
25 gift, gift card, cash, coupon, waiver of any insurance deductible, or any other thing
26 of value in exchange for permitting a contractor, another public adjuster, a public
27 adjuster's apprentice, or any other person acting on behalf of a public adjuster to
28 inspect the property owner's roof or to file a roof related claim.
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HB NO. 999
1 I. A public adjuster shall not offer, deliver, receive, or accept any
2 compensation, inducement, or reward for the referral of any services for which
3 property insurance proceeds would be used for roof repairs or replacement.
4 J. A public adjuster shall not negotiate with or obtain a statement from a
5 claimant or witness at a time the claimant or witness would reasonably be expected
6 to be in duress or suffering from serious mental or emotional distress as a result of
7 physical, mental, or emotional trauma associated with a loss; nor shall a public
8 adjuster conclude a settlement if the settlement would be disadvantageous to a
9 claimant who has been traumatized or distressed by a loss.
10 K. A public adjuster shall not prevent or attempt to dissuade a claimant from
11 speaking privately with an insurer, company or independent adjuster, attorney, or any
12 other person regarding the settlement of a claim.
13 L. A public adjuster shall not restrict or prevent an insurer, company
14 employee adjuster, independent adjuster, attorney, investigator, or other person
15 acting on behalf of an insurer from having reasonable access at reasonable times to
16 any insured or claimant or to the insured property that is the subject of a claim.
17 M. A public adjuster shall provide to the claimant or insured a written
18 estimate of the loss or any other claim for payment of insurance proceeds within
19 sixty days of the date the contract is executed. The written estimate shall include an
20 itemized per unit estimate of the repair materials including itemized information
21 regarding equipment, materials, labor, and supplies in accordance with accepted
22 industry standards. A public adjuster shall retain such written estimates for at least
23 five years and shall make an estimate available to the claimant or insured, the
24 insurer, and the department upon request.
25 N. A public adjuster shall ensure the following actions are performed:
26 (1) Prompt notice of the claim is given to the insurer.
27 (2) The public adjuster's contract is provided to the insurer.
28 (3) The property is available for inspection of the loss or damage by the
29 insurer.
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HB NO. 999
1 (4) The insurer is given an opportunity to interview the insured directly
2 about the loss and claim.
3 (5) The insurer is allowed to obtain necessary information to investigate and
4 respond to the claim.
5 O. A public adjuster shall not act in a manner that obstructs or prevents an
6 insurer or an insurer's adjuster from timely conducting an inspection of any part of
7 the insured property for which there is a claim for loss or damage. A public adjuster
8 representing an insured may be present for the insurer's inspection, but if the
9 unavailability of the public adjuster would otherwise delay the insurer's timely
10 inspection of the property, the public adjuster or the insured shall allow the insurer
11 to have access to the property without the participation or presence of the public
12 adjuster or insured in order to facilitate the insurer's prompt inspection of the loss or
13 damage.
14 P. Public adjusters shall also adhere to the following general requirements:
15 (1) No public adjuster, while so licensed by the department, may represent
16 or act as a company adjuster or independent adjuster in Louisiana.
17 (2) A public adjuster shall not enter into a contract or accept a power of
18 attorney that vests in the public adjuster the authority to choose the persons who shall
19 perform repair work.
20 (3) A public adjuster shall ensure that all contracts for the public adjuster's
21 services are in writing and set forth all terms and conditions of the engagement.
22 (4) A public adjuster shall not file or record on behalf of an insured client
23 any complaint to or with any court of record or agency of the state.
24 (5) A public adjuster shall not provide services with any claim except a first-
25 party claim on behalf of an insured against such insured's insurer.
26 (6) A public adjuster shall not provide services to the insured in connection
27 with any claim for personal injury.
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HB NO. 999
1 (7) A public adjuster shall not render legal advice to the insured, including
2 but not limited to legal advice regarding the policy provisions or coverage issues.
3 (8) A public adjuster shall not engage in the unauthorized practice of law as
4 defined in R.S. 37:212 and 213.
5 (9) A public adjuster may not agree to any loss settlement without the
6 insured's knowledge and written consent.
7 (10) A public adjuster shall not act as an appraiser or umpire pursuant to the
8 appraisal provisions of R.S. 22:1311 or any similar provision of a policy of insurance
9 if that public adjuster is adjusting or has adjusted all or any part of the claim, or both,
10 or property subject to that appraisal provision.
11 (11) A public adjuster shall handle every adjustment and settlement with
12 honesty and integrity without any remuneration to himself, except that to which he
13 is legally entitled.
14 (12) A public adjuster, upon undertaking a claim, shall act with dispatch and
15 due diligence in achieving a proper disposition of the claim.
16 (13) A public adjuster shall promptly report to the department any conduct
17 by any licensed insurance representative of this state which violates any provision
18 of this Section or any department rules or regulations.
19 (14) A public adjuster shall exercise appropriate care when dealing with
20 elderly claimants.
21 (15) A public adjuster shall not advise a claimant to refrain from seeking
22 legal advice, nor advise against retaining counsel to protect the claimant's interests.
23 (16) A public adjuster shall not undertake the adjustment of any claim for
24 which the public adjuster is not competent and knowledgeable as to the terms and
25 conditions of the insurance coverage, or which otherwise exceeds the public
26 adjuster's expertise.
27 (17) A public adjuster shall not materially misrepresent to an insured or other
28 interested parties the terms and coverage of an insurance contract with the intent of
29 and for the purpose of effectuating the settlement of a claim for loss or damage or
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HB NO. 999
1 benefits under such contract on more favorable terms than those provided in and
2 contemplated by the insurance contract.
3 (18) A public adjuster shall not, with intent to defraud or deceive an insurer,
4 present to an insurer a statement, estimate, invoice, claim summary, proof of loss,
5 engineer's report, building consultant's report, weather report, or any other document
6 that the public adjuster knows to contain false or misleading material information.
7 Q. Violation of any provision of this Section shall be grounds for
8 administrative action against the licensee. In addition to administrative action, a
9 public adjuster who violates the provisions in this Section shall be deemed to have
10 committed an unfair trade practice pursuant to R.S. 22:1964, and the penalties
11 contained in R.S. 22:1969 may be enforced by the commissioner.
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 999 Original 2022 Regular Session Firment
Abstract: Provides for public adjusters.
Present law provides that prior to the signing of a contract between a public adjuster and an
insured, the public adjuster shall provide the insured with a separate disclosure document
regarding certain aspects of the claims process.
Proposed law retains present law and adds the following provisions to the list of disclosures:
(1)A notice that Louisiana law requires a person insured under a property insurance
policy to pay any deductible applicable under the policy and that it is a violation of
the law for certain persons to assist in an insured's failure to pay a deductible.
(2)A public adjuster shall not participate directly or indirectly in the repair of damaged
property that is the subject of a claim adjusted by the public adjuster.
(3)The insured has the right to rescind the contract within 10 business days after the
date the contract was signed.
(4)A notice that any person who knowingly presents a fraudulent claim or knowingly
presents false information in an application for insurance is guilty of a crime and
may be subject to fines and confinement in prison.
Present law provides that an insured has the right to rescind the contract within 3 business
days after the date the contract was signed.
Proposed law changes the time frame in present law from 3 business days after the date the
contract was signed to 10 business days after the date the contract was signed.
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HB NO. 999
Present law provides certain standards of conduct for public adjusters.
Proposed law retains present law and adds the following items to the standards of conduct
for public adjusters:
(1)A public adjuster shall not offer a residential property owner a waiver of any
insurance deductible or anything of value in exchange for permitting a person acting
on behalf of a public adjuster to inspect the property owner's roof.
(2)A public adjuster shall not offer or accept any compensation for the referral of any
services for which property insurance proceeds would be used for roof repairs.
(3)A public adjuster shall not negotiate with or obtain a statement from a claimant or
witness at a time the claimant or witness would reasonably be expected to be in
duress associated with a loss.
(4)A public adjuster shall not prevent or attempt to dissuade a claimant from speaking
privately with an insurer, company or independent adjuster, attorney, or any other
person regarding the settlement of a claim.
(5)A public adjuster shall not restrict or prevent a person acting on behalf of an insurer
from having reasonable access to any insured or claimant or the insured property that
is the subject of a claim.
(6)A public adjuster shall provide to the claimant or insured a written estimate of the
loss within 60 days of the date the contract is executed. The public adjuster shall
retain such written estimates for at least five years and make an estimate available
to the claimant, insured, insurer, and the department upon request.
(7)A public adjuster shall ensure that prompt notice of a claim is given to the insurer,
that the public adjuster's contract is provided to the insurer, the property is available
for inspection of the loss by the insurer, the insurer is given an opportunity to
interview the insured about the loss and claim, and the insurer is allowed to obtain
necessary information to investigate and respond to the claim.
(8)A public adjuster shall not act in a manner that obstructs or prevents an insurer or an
insurer's adjuster from timely conducting an inspection of any part of the insured
property for which there is a claim for loss or damage.
Present law provides certain general requirements to which public adjusters shall adhere.
Proposed law retains present law and adds the following items to the list of general
requirements:
(1)A public adjuster shall handle every adjustment and settlement with honesty and
integrity, without any remuneration to himself except that to which he is legally
entitled.
(2)A public adjuster, upon undertaking a claim, shall act with dispatch and due
diligence in achieving a proper disposition of the claim.
(3)A public adjuster shall promptly report to the department any conduct by any
licensed insurance representative of this state which violates any provision of present
or proposed law or any department rules.
(4)A public adjuster shall exercise appropriate care when dealing with elderly
claimants.
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HB NO. 999
(5)A public adjuster shall not advise a claimant to refrain from seeking legal advice, nor
advise against retaining counsel to protect the claimant's interests.
(6)A public adjuster shall not undertake the adjustment of any claim for which the
public adjuster is not competent and knowledgeable as to the terms and conditions
of the insurance coverage, or which otherwise exceeds the public adjuster's expertise.
(7)A public adjuster shall not materially misrepresent to an insured or other interested
parties the terms and coverage of an insurance contract with the intent of and for the
purpose of effectuating the settlement of a claim for loss or damage or benefits under
such contract on more favorable terms than those provided in and contemplated by
the insurance contract.
(8)A public adjuster shall not, with the intent to defraud or deceive an insurer, present
to an insurer a statement, estimate, invoice, claim summary, proof of loss, engineer's
report, building consultant's report, weather report, or any other document that the
public adjuster knows to contain false or misleading material information.
Proposed law provides that violation of any provision of the public adjuster standards of
conduct shall be grounds for administrative action against the licensee.
Proposed law provides that in addition to administrative action, a public adjuster who
violates the provisions of the public adjuster standards of conduct shall be deemed to have
committed an unfair trade practice pursuant to present law (R.S. 22:1964), and the penalties
contained in present law (R.S. 22:1969) may be enforced by the commissioner.
(Amends R.S. 22:1704(H) and 1706(H); Adds R.S. 22:1704(E)(6)-(9) and 1706(I)-(Q))
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