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 604 Original 2023 Regular Session Garofalo
Abstract: Requires the La. Dept. of Insurance to establish and maintain an umpire registry to be
known as the "Umpire Roster" which shall function as a repository individuals who can aid
in the appraisal process.
Proposed law requires that the La. Dept. of Insurance (LDI) establish, inaugurate, and maintain a
registry of individuals who successfully meet the qualifications demonstrated in proposed law, have
no current or preexisting conflicts of interest that would prevent them from being unbiased in the
appraisal process, and possess the credentials to effectively contribute to the appraisal process.
Present law prohibits and does not condone the false representation of an appraiser.
Present law forbids a person who is not a qualified or actual appraiser from conducting any business
in furtherance of the appraisal process.
Proposed law retains present law and makes technical changes.
Present law provides that no person shall act as, or hold himself out to be, an appraiser unless such
person has successfully registered with the commissioner of insurance as an appraiser.
Proposed law retains present law and makes technical changes.
Present law provides that an appraiser must register with the commissioner of insurance on a form
prescribed by the commissioner and pay the requisite fee's as required by present law.
Proposed law retains present law and makes technical changes.
Present law stipulates that an appraiser's application shall remain on file for 1 year.
Proposed law retains present law and makes technical changes.
Present law empowers the commissioner of insurance to adopt rules and regulations in accordance
with the Administrative Procedure Act. Present law further authorizes the commissioner of
insurance to pursue all actions necessary, proper, and appropriate to enforce present law.
Proposed law retains present law and makes technical changes. Present law authorizes the commissioner of insurance to obstruct an appraiser from committing
violations of present law. Present law further empowers the commissioner of insurance to issue an
order prohibiting a person from falsely presenting himself as an appraiser or exhibiting conduct that
may be deemed a violation of present law.
Proposed law defines "appraiser", "claimant", "party", "umpire", "umpire roster", and "umpire
selection panel".
Proposed law authorizes the initiation of an appraisal process, without limitation, if all of the
following circumstances apply:
(1)An insurer has accepted coverage for a claim, in full or in part.
(2)The claimant and insurer have a dispute as to the amount of loss the insurer will pay for the
accepted portion of the claim.
(3)The claimant or insurer demands an appraisal pursuant to the insurer's policy.
Proposed law mandates that the appraisal process begin with the insurer and the claimant selecting
an appraiser. Proposed law further provides that the appraiser must be independent and qualified.
Proposed law provides that in order to qualify as an appraiser, a person must be one of the following:
(1)A Louisiana licensed engineer or architect with experience and training in building
construction, repair, estimating, or investigation of property damage.
(2)A Louisiana licensed adjuster or public adjuster with experience and training in estimating
property damage.
(3)A Louisiana licensed general contractor with experience and training in building
construction, repair, or estimating property damage.
Proposed law stipulates that an appraiser has a duty and obligation to consider all information
provided by the parties and any other reasonably available evidence material to the claim, follow the
insurer's insurance policy when making the appraisal process, and carefully decide all issues
submitted for termination regarding the amount of loss. Proposed law further mandates that an
appraiser give the parties and the other appraiser an itemized written appraisal and conduct the
appraisal process to advance the fair and efficient resolution of the matters submitted for decisions
Proposed law provides that a person will be not deemed qualified to serve as an appraiser if any
potential or actual conflicts of interest exist.
Proposed law provides that once the appraisal process has commenced, the insurer and the claimant
have an obligation to advise each other of the appraisal process fees within 5 days of successfully
agreeing upon and selecting an appraiser. Proposed law authorizes and empowers an appraiser to select an umpire who is independent and
qualified.
Proposed law provides that if the claimant's appraiser and the insurer's appraiser fail to agree upon,
select, or hire an umpire, the commissioner of insurance is obliged to select an umpire after
reviewing the following: the type of policy, a description of the claim, the insurer's claim acceptance
letter, and any other information that the commissioner requests.
Proposed law provides that the umpire shall participate in the resolution of the dispute if the
appraisers fail to agree on a decision.
Proposed law provides that in order to qualify as an umpire, a person must meet the following
requirements:
(1)Be an engineer, architect, adjuster, general contractor, attorney, or a former or presiding
judge.
(2)Have no pre-existing or current conflicts of interest.
Proposed law mandates that to be placed on the umpire roster, a person must register with the
commissioner of insurance and successfully meet the qualifications.
Proposed law stipulates the information that must be disclosed in an prospective candidate's
registration form.
Proposed law provides that it is within the commissioners discretion to limit the number of umpires
on the roster. Proposed law further provides that a person shall not be listed on the umpire roster
until the commissioner sends written notice of placement on the roster.
Proposed law provides for the publication of the umpire roster.
Proposed law provides for the mandatory reporting of any or all conflicts of interest.
Proposed law provides that an umpire shall not remain on the roster for more than 3 years, unless
and until, the umpire submits a new registration to the commissioner.
Proposed law provides for the voluntary and involuntary removal of an umpire from the roster.
Proposed law mandates that in the event that the insurer's appraiser and the claimant's appraiser
cannot agree an umpire, the parties may request that the commissioner of insurance select the
umpire. Proposed law further mandates that whomever the commissioner of insurance selects to
serve as an umpire, must accept or reject the selection within 5 days.
Proposed law authorizes the commissioner of insurance to assemble and promulgate a umpire
selection panel to assist him in assessing and considering specific qualifications, prior experience, and the resume's of prospective candidates.
Proposed law provides for the notification of selection by the commissioner of insurance to the
selected umpire.
Proposed law provides that an umpire may only begin work if the insurer's appraiser and the
claimant's appraiser fail to reach an agreement on the appraisal amount. Proposed law further
provides that an appraiser must direct an umpire on when and where to begin work, and this
direction must be relayed in writing.
Proposed law provides that the parties and the appraiser may request that the umpire review any
information related to the claim including but not limited to itemized estimates, supporting
documents, photographs, and diagrams.
Proposed law provides that before the umpire begins work, the parties and the umpire shall sign an
appraisal contract which shall require the parties and the umpire to comply with the provisions of
proposed law and provide that each party shall pay half of all appraisal costs.
Proposed law provides that the umpire's work shall only cover items about which the appraisers
disagree. Proposed law further provides that the umpire review the differences and seek an
agreement with one or both appraisers regarding the disputed items.
Proposed law prohibits an appraiser or umpire from doing any of the following:
(1)Permit outside pressure to affect the appraisal.
(2)Delegate the duty to decide to any other person.
(3)Communicate with an umpire without the claimant, the insurer, or their appraiser being
present.
Proposed law stipulates that the commissioner of insurance is not responsible for any of the fee's
associated with the appraisal process.
Proposed law provides that each party shall pay half of all reasonable and necessary costs incurred
or charged in connection with the appraisal process.
Proposed law provides that it is within the commissioner of insurance's discretion to extend
deadlines. Proposed law provides that the commissioner of insurance shall not extend a deadline
without first receiving a request in writing from a party, appraiser, or umpire.
(Amends and reenacts Part XI of Chapter 5 of Title 22 of the Louisiana Revised Statutes of 1950)