HB 1162

ENROLLED
 2026 Regular Session
  ACT No. 932
 HOUSE BILL NO. 1162
 BY REPRESENTATIVES GLORIOSO AND CHASSION
1AN ACT
2 To amend and reenact R.S. 22:1892(A)(1) and (I)(2)(a) and (3) and to enact R.S.
322:1892(I)(4) and (L), relative to the payment and adjustment of insurance claims;
4to require insurers to verify contractor licensing before issuing certain payments; to
5provide for a safe harbor from penalties for payment delays related to contractor
6verification; to provide for breach of good faith duty; to provide for limitations on
7causes of action; and to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9Section 1. R.S. 22:1892(A)(1) and (I)(2)(a) and (3) are hereby amended and
10 reenacted and R.S. 22:1892(I)(4) and (L) are hereby enacted to read as follows:
11§1892. Payment and adjustment of claims; policies other than life and health and
12accident; good faith duty; breach of good faith duty; vehicle damage claims;
13extension of time to respond to claims during emergency or disaster;
14penalties; arson-related claims suspension; definitions
15A.(1) All insurers issuing any type of contract, other than those specified in
16R.S. 22:1811, 1821, and Chapter 10 of Title 23 of the Louisiana Revised Statutes of
171950, shall pay the amount of any claim due any insured within thirty days except
18as provided in R.S. 22:1892.2, as applicable, after receipt of satisfactory proofs of
19loss from the insured or any party in interest. The insurer shall notify the insurance
20producer of record of all such payments for property damage claims made in
  Page 1 of 3
 CODING: Words in struck through type are deletions from existing law; words underscored
 are additions.
 HB NO. 1162  ENROLLED
1accordance with this Paragraph. However, if a contractor is a named payee on a
2check or draft intended for the repair or restoration of immovable property, the
3insurer or its adjuster shall first verify the contractor's license status through the
4website or portal of the Louisiana State Licensing Board for Contractors. The
5amount of any claim due shall be paid pursuant to this Section or R.S. 22:1892.2, as
6applicable, after receipt of satisfactory proof of loss and, if applicable, completion
7of the verification required by this Paragraph.
8*       *  *
9I.(1)
10*       *  *
11(2) Any one of the following acts, if knowingly committed or performed by
12an insurer or representative of the insurer, constitutes a breach of the insurer's duties
13imposed in Paragraph (1) of this Subsection:
14(a) A misrepresentation of pertinent facts or insurance policy provisions
15relating to any coverages at issue or a misrepresentation of relevant insurance policy
16provisions.
17*       *  *
18(3) The provisions of this Subsection shall not create a cause of action
19against an insurer by the insured or his assignee in a claim for personal injury or
20bodily injury when any of the following conditions are present:
21(a) There is a good faith dispute as to liability.
22(b) There is a good faith dispute as to medical causation for the injuries
23alleged by the claimant.
24(c) An offer has not been presented by or on behalf of a third-party claimant
25within the applicable policy limits, and the insurer has been given at least thirty days
26to respond.
27(4) The provisions of this Subsection shall not create a separate cause of
28action against a representative of the insurer distinct and apart from the cause of
29action against the insurer.
30*       *  *
  Page 2 of 3
 CODING: Words in struck through type are deletions from existing law; words underscored
 are additions.
 HB NO. 1162  ENROLLED
1L.(1) Notwithstanding any other provision of this Section or of R.S.
222:1892.2 to the contrary, an insurer shall not be deemed to have acted in bad faith,
3nor shall that insurer be subject to any penalty or attorney fees, for a delay in
4transmitting payment if that delay is directly and reasonably attributable to the
5insurer's inability to verify a contractor's license through the portal or website of the
6Louisiana State Licensing Board for Contractors.
7(2) To qualify for the safe harbor provided in this Subsection, the insurer
8shall do all of the following:
9(a) Document the attempt to verify the license in the claim file, including the
10date, time, and result of the search.
11(b) Provide written notice to the insured within five business days of the
12failed verification attempt, stating that payment is being withheld or delayed pending
13verification of the contractor's license status as required by Paragraph (A)(1) of this
14Section.
  SPEAKER OF THE HOUSE OF REPRESENTATIVES
  PRESIDENT OF THE SENATE
  GOVERNOR OF THE STATE OF LOUISIANA
 APPROVED:
  Page 3 of 3
 CODING: Words in struck through type are deletions from existing law; words underscored
 are additions.