RDCSB163 4282 3672
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)]
SB 163 Reengrossed 2022 Regular Session Talbot
Proposed law requires the commissioner to promulgate certain rules and regulations relative
to a catastrophe claim process disclosure form that includes but is not limited to the
following:
(1)An explanation of the claims process and the manner through which the insurer
should communicate with the insured, subject to the terms and conditions of the
insurance policy.
(2)An explanation of the supplemental claim process and the manner through which the
insurer should communicate with the insured, subject to the terms and conditions of
the insurance policy.
(3)An explanation of the methodology used to calculate the percentage of the insured
value of the property applicable to the insured's hurricane, named storm, wind, and
hail deductibles.
(4)An explanation of the difference between the actual cash valuation and the
replacement cost valuation.
(5)The rights and protections a policyholder has under state law.
(6)An explanation of the duties a policyholder has in order to settle an insurance claim.
(7)An explanation of the items necessary to properly document an insurance claim.
(8)An explanation of the procedure for filing a complaint with the department.
(9)A statement that informs the policyholder that if he files a claim for damage to a
property subject to a mortgage, he may be required to notify the lender or mortgage
servicer of the claims.
(10)A statement that informs the policyholder that if he receives proceeds from an
insurance settlement for damage to a property subject to a mortgage, the policyholder
may be required to contact the lender or mortgage servicer, as the lender or mortgage
servicer may be a named payee whose endorsement may be required prior to
depositing the insurance proceeds.
(11)An explanation of the procedure for filing a complaint with the Office of Financial
Institutions.
(12)The process for utilizing the Hurricane Mediation Program if there is a disputed
residential property insurance claim for property damage.
Proposed law provides that if the governor declares a state of emergency, insurers settling
property insurance claims that arise out of a state of emergency shall send to a policyholder
filing a property damage claim, the catastrophe claim process disclosure form.
Proposed law provides that the insurer shall send the disclosure form to the policyholder no
later than the date of the initial investigation of the claim by an adjuster.
Proposed law provides that the disclosure form may be sent by U.S. mail, electronic
delivery, or hand delivery.
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Proposed law provides that nothing in proposed law shall be construed to provide a
policyholder with a civil cause of action.
Effective on Jan.1, 2023.
(Add R.S. 22:1897)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Insurance to the original
bill
1. Add an explanation letting the policyholder know that if he has a mortgage
loan, and the policyholder files an insurance claim for damages that the
policyholder needs to immediately notify the lender or mortgage servicer that
he filed a claim.
2. Add an explanation letting the policyholder know that if the policy owner
receives an insurance settlement check and the policyholder has a mortgage
loan that he may need to contact the lender or mortgage servicer because the
lender or mortgage servicer will need to endorse the check in order to receive
funds.
3. Add a process for the policyholder to file a complaint with the Office of
Financial Institutions if there is any dissatisfaction with how the lender or
mortgage servicer handled the disbursement of fund.
Senate Floor Amendments to engrossed bill
1. Adds an explanation on how the insurer should communicate with the
insured.
2. Adds an explanation on how the insurer should communicate with the
insured.
3. Makes a technical change.
4. Adds the process on how an insured can utilize the Hurricane Mediation
Program when there is a disputed residential property insurance claim for
property damage.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the
reengrossed bill:
1. Make technical changes.
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