The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Beth O'Quin.
DIGEST
SB 323 Original 2024 Regular Session Talbot
Present law provides for payment and adjustment procedures for property damage insurance claims.
Present law provides bad faith penalties for an insurer that fails to comply with present law.
Proposed law retains present law but removes bad faith penalties for an insurer not in compliance
with present law, and adds an insurer that is not in compliance with present law is subject to a
penalty not to exceed $5,000.
Present law provides certain procedural requirements if the president or governor declares a state of
disaster.
Proposed law defines "catastrophic loss", "immovable property", and "residential property".
Proposed law provides property damage insurance claims are subject to a two year liberative
prescription period.
Present law provides an exemption from class actions and penalties awarded pursuant to present law
for the Louisiana Insurance Guaranty Association and Louisiana Citizens Property Insurance
Corporation.
Proposed law retains present law and adds an exemption for the Louisiana Insurance Guaranty
Association from any liability for any special damages provided for pursuant to the proposed law.
Proposed law provides an insurer owes to his insured a duty of good faith and fair dealing.
Proposed law provides an insurer breaches its good faith and fair dealing by any of the following
acts:
(1) Misrepresenting pertinent facts or insurance policy provisions relating to any coverages at
issue.
(2) Failing to pay a settlement within thirty days after an agreement is reduced to writing.
(3) Denying coverage or attempting to settle a claim on the basis of an application which the
insurer knows was altered without notice to, or knowledge or consent of, the insured.
(4)Misleading a claimant as to the applicable prescriptive period. (5) Failing to pay claims when the failure is arbitrary, capricious, or without probable cause.
Proposed law provides the insured, claimant, and representatives of the insured or claimant have a
duty of good faith and fair dealing.
Proposed law provides that if a trier of fact determines the insured, claimant, or representatives of
the insured or claimant breach their duty of good faith and fair dealing, the insured or claimant is not
entitled to recover any penalties or attorney fees.
Proposed law does not apply to surety bonds or health and accident policies.
Proposed law provides for an insurer acting in good faith and fair dealing and provides the insurer
is subject to penalties for violating proposed law.
Proposed law provides procedures for catastrophic losses to residential property.
Proposed law provides procedures for catastrophic losses to immovable property.
Proposed law provides penalties for an insurer that fails to comply with proposed law.
Proposed law provides the commissioner may promulgate rules and regulations for expedited claims
process in the event of a catastrophe.
Effective August 1, 2024.
(Amends R.S. 22:1892(A)(3) and (4), (B)(1), and (H); adds R.S. 22:1892(A)(7), (B)(7), (I), (J), and
(K) and 1892.2; repeals R.S. 22:1973)