SLS 23RS-351 ORIGINAL
2023 Regular Session
SENATE BILL NO. 190
BY SENATOR SMITH
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CONTRACTORS. Provides relative to certain payments for home improvement contracting
services. (8/1/23)
1 AN ACT
2 To amend and reenact R.S. 37:2159.1(A)(7)(a), relative to home improvement contracting,
3 assignment of rights, and property insurance; to prohibit contractors from engaging
4 in certain acts related to an insured's property insurance claim; to provide relative to
5 the assignment of any rights, benefits, proceeds, or causes of action of an insured;
6 to provide for terms, requirements, and conditions; and to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 37:2159.1(A)(7)(a) is hereby amended and reenacted to read as
9 follows:
10 ยง2159.1. Home improvement contracting; prohibited acts; property insurance
11 A. The following acts are prohibited by persons or companies performing
12 home improvement contracting services:
13 * * *
14 (7)(a) Accepting an assignment of any rights, benefits, proceeds, or causes
15 of action of an insured under a property insurance policy prior to completing the
16 work described in the home improvement contract and the property insurer
17 conducting its initial examination of the damage caused by the covered peril. The
Page 1 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 190
SLS 23RS-351 ORIGINAL
1 assignment of any rights, benefits, proceeds, or causes of action shall be limited to
2 the scope of work and fees provided in the home improvement contract, which shall
3 comply with the provisions of R.S. 37:2159.1. Prior to any payment to a person
4 or company performing home improvement contracting services by the
5 property insurer pursuant to an assignment of any rights, benefits, proceeds, or
6 causes of action, the insured shall approve of the payment in writing.
7 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Xavier I. Alexander.
DIGEST
SB 190 Original 2023 Regular Session Smith
Present law provides that a home improvement contractor is prohibited from accepting any
assignment of any rights, benefits, proceeds, or causes of action of an insured under a
property insurance policy prior to completing the work. Present law further provides that the
assignment of any right, benefits, proceeds, or causes of action shall be limited to the scope
of work and fees provided in the contract.
Proposed law retains present law and further provides that the insured shall approve of the
payments in writing that are made by the property insurer to the home improvement
contractor pursuant to an assignment of any rights, benefits, proceeds, or causes of action.
Effective August 1, 2023.
(Amends R.S. 37:2159.1(A)(7)(a))
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.