SLS 22RS-93 ORIGINAL
2022 Regular Session
SENATE BILL NO. 186
BY SENATOR HENRY
INSURANCE POLICIES. Provides relative to public adjuster fees. (1/1/23)
1 AN ACT
2 To amend and reenact R.S. 22:1703, the introductory paragraph of 1704(A), (A)(11), and
3 the introductory paragraph of (E) and (E)(5), relative to public adjuster fees; to
4 provide for certain fees; to provide for limitations on contracts or agreements
5 between public adjusters and insureds; to provide terms and conditions; and to
6 provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 22:1703, the introductory paragraph of 1704(A), (A)(11), and the
9 introductory paragraph of (E) and (E)(5) are hereby amended and reenacted to read as
10 follows:
11 §1703. Public adjuster fees
12 A. Except as provided in R.S. 22:1704(C)(2), A a public adjuster may
13 charge who enters into a contract or arrangement with the an insured may
14 charge a reasonable fee that includes a full flat fee, an hourly fee, or a percentage
15 fee that is calculated as a percentage of the total amount paid by an insurer to
16 resolve a claim, or any other valuable consideration to another for services
17 rendered, and the fee shall not exceed ten percent for all combined coverages
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 186
SLS 22RS-93 ORIGINAL
1 of the claim. A public adjuster shall not solicit for or enter into any contract or
2 arrangement between an insured and a public adjuster which provides for payment
3 of a fee to the public adjuster which is contingent upon, or calculated as a percentage
4 of, the amount of any claim or claims paid to or on behalf of an insured by the
5 insurer and any such contract shall be against public policy and is null and void.
6 B. A public adjuster shall not pay a commission, service fee, full flat fee, an
7 hourly fee, or a percentage fee or other valuable consideration to another for public
8 adjusting in this state if that person is required to be licensed under this Part and is
9 not so licensed.
10 C. A person shall not accept a commission, service fee, full flat fee, an
11 hourly fee, or a percentage fee or other valuable consideration for public adjusting
12 in this state if that person is required to be licensed under this Part and is not so
13 licensed.
14 §1704. Contract between public adjuster and insured
15 A. Public adjusters shall ensure that all contracts for their services are in
16 writing and contain the following terms:
17 * * *
18 (11) Full salary, The full fee, an hourly fee, a percentage fee,
19 compensation, or other considerations other valuable consideration the public
20 adjuster is to receive for services.
21 * * *
22 E. Prior to the signing of the contract, the public adjuster shall provide the
23 insured with a separate disclosure document regarding the claim process that states
24 the following:
25 * * *
26 (5) The salary, full flat fee, or the percentage fee, or other valuable
27 consideration to be paid to the public adjuster is the obligation of the insured, not the
28 insurer.
29 * * *
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 186
SLS 22RS-93 ORIGINAL
1 Section 2. This Act shall become effective on January 1, 2023.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Beth O'Quin.
DIGEST
SB 186 Original 2022 Regular Session Henry
Present law provides that a public adjuster can charge a reasonable fee, but also provides that
a contingency fee agreement between a public adjuster and an insured is contrary to public
policy and is null and void.
Proposed law provides that, except for the fee limitation set forth under present law, a public
adjuster who enters into a contract or arrangement with an insured can charge a reasonable
fee that includes full flat fees, hourly fees, percentage fees, or any other valuable
consideration for services rendered, and the fee cannot exceed 10% for all combined
coverages of the claim.
Present law provides that a public adjuster cannot be paid commissions, service fees, or other
valuable considerations to another for public adjusting in this state if the state requires a
public adjuster to be licensed under present law and he is not licensed.
Proposed law retains present law but deletes commissions and service fees and adds full flat
fees, hourly fees, and percentage fees provided for by proposed law.
Present law provides that a person cannot accept commissions, service fees, or other
valuable consideration for public adjusting in this state if the state requires a public adjuster
to be licensed under present law but he is not licensed.
Proposed law retains present law but deletes commissions and service fees and adds full flat
fees, hourly fees, and adds percentage fees provided for by proposed law.
Present law requires that public adjusters have written contracts for their services that
include the full salary, fees, compensations, or other valuable considerations paid for their
services.
Proposed law retains present law but deletes commissions and service fees and adds full flat
fees, hourly fees, and adds percentage fees provided for by proposed law.
Present law provides that prior to the signing of a contract, a public adjuster is required to
provide an insured a disclosure document that includes the full salary, commissions, fees,
or other considerations to be paid to the public adjuster.
Proposed law retains present law but deletes full salary, fees, compensations, and other
considerations, and adds full flat fees, hourly fees, percentage fees, and other valuable
considerations.
Effective on January 1, 2023.
(Amends R.S. 22:1703, 1704(A) (intro para) and (A)(11), and (E) (intro para) and (E)(5)
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.