HASBSB323 OQUINE 2597
SENATE SUMMARY OF HOUSE AMENDMENTS
SB 323 2024 Regular Session Talbot
KEYWORD AND SUMMARY AS RETURNED TO THE SENATE
INSURANCE CLAIMS. Provides for fair claims processing. (7/1/24)
SUMMARY OF HOUSE AMENDMENTS TO THE SENATE BILL
1. Makes technical changes.
DIGEST OF THE SENATE BILL AS RETURNED TO THE SENATE
SB 323 Reengrossed 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 greater than $5,000 or for bad faith penalties, whichever is greater.
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.
Proposed law provides any penalty for breach of a duty that is based solely on failure to pay
the amount of the claim due within the time required by proposed law following receipt of
satisfactory proof of loss will only be awarded a penalty if the breach is found to be
arbitrary, capricious, or without cause.
Proposed law requires an insurer to transmit payment due for a catastrophic loss of a
residential property within 60 days after receipt of satisfactory proof of loss.
Proposed law requires an insurer to transmit payment due for a catastrophic loss of an
immovable property within 90 days after receipt of satisfactory proof of loss.
Present law provides an exemption from class actions and penalties awarded pursuant to
present law for the La. Insurance Guaranty Association and La. Citizens Property Insurance
Corporation.
Proposed law retains present law and adds an exemption for the La. Insurance Guaranty
Association from any liability for any special damages provided for in present and proposed
law.
Proposed law provides an insurer owes to his insured a duty of good faith and fair dealing.
Proposed law provides an insurer in bad faith is subject to penalties not to exceed 50% or
the damages or $5,000, whichever is greater.
Proposed law provides an insurer breaches its duty of 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. HASBSB323 OQUINE 2597
(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 bad faith actions
committed by the insured, claimant, or his representative are any of the following:
(1)Failing to comply with contractual duties established by his insurance policy,
including providing requested information regarding the claim, making demands on
the insurer, setting deadlines, and attempting to settle the claim.
(2)Misrepresenting facts or insurance policy provisions that relate to any coverage at
issue.
(3)Submitting an estimate for damages that lacks a basis for coverage under the policy
terms or lacks a good faith evidentiary basis.
Proposed law does not impact any right or remedy available to the insurer, including but not
limited to voiding the policy or contract or denying coverage.
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 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 penalties for an insurer that fails to comply with proposed law.
Proposed law requests the La. State Law Institute to revise citations listed in present law to
conform with proposed law.
Effective July 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)
______________________
Beth O'Quin
Attorney