Urges the Commissioner of Insurance to study the issue of insurers failing to timely pay property damage claims after a presidentially or gubernatorially declared disaster or emergency.
Impact
The resolution seeks to highlight the inadequacies in the current system of claims adjustments and the enforcement of mandatory timelines for payment by insurers. The Commissioner is directed to study recent trends related to policyholder complaints and the penalties insurers face for delayed payments. Data collection is targeted towards understanding the actual financial ramifications faced by policyholders after these disasters and assessing whether existing penalties are sufficient to discourage bad faith practices among insurers.
Summary
Senate Resolution No. 140, introduced by Senator Stine, calls for a thorough investigation by the Commissioner of Insurance regarding the failure of insurers to promptly pay property damage claims following declared disasters or emergencies. The resolution acknowledges the requirements set forth in Louisiana state law, which mandates insurers to process and pay claims within a specified period after satisfactory proof of loss is provided. The urgency behind the resolution stems from the struggles faced by policyholders in the aftermath of significant disasters, such as hurricanes Laura, Delta, Zeta, and Ida, where many have reportedly experienced delays in receiving due compensation for their losses.
Sentiment
Overall, there seems to be a bipartisan acknowledgment of the issues at play, as stakeholders express a desire for a more equitable and responsive insurance market. Support for the resolution indicates a growing concern among legislators about protecting the rights of Louisiana residents and ensuring swift recovery services in times of emergency. However, the study's outcomes may stir debate regarding the adequacy of current regulatory frameworks and whether further reforms are necessary to enhance consumer protection.
Contention
Notably, while the resolution emphasizes the need for supporting policyholders, there may be contention regarding how effectively to balance regulatory oversight with the operational needs of insurance providers. Some may argue that overly stringent penalties could impact insurers' willingness to offer coverage in high-risk areas, hence leading to a potential decrease in the availability of insurance products. The implementation of the resolution's recommendations may provoke discussions about the appropriate measures that should be taken to protect consumers while fostering a stable insurance market.
Urges the Commissioner of Insurance to develop outreach initiatives to assist seniors and special needs individuals after a presidentially or gubernatorially declared disaster or emergency.
Urges the Commissioner of Insurance to study the issue of notice of cancellation or nonrenewal of a property insurance policy that provides coverage for property damaged by a named storm or windstorm.