House Bill No. 558 enacts a new provision under R.S. 22:1892(A)(6) concerning claims settlement practices in Louisiana. The bill mandates that when an insurer issues a check, draft, or other negotiable instrument that is jointly payable to an insured and a mortgagee or mortgage servicer for insurance settlement proceeds covering multiple types of coverage, the insurer must provide a statement detailing the dollar amount allocated to each type of coverage. This includes categories such as dwelling, personal property, and additional living expenses. Alternatively, insurers have the option to issue separate payments for each type of coverage instead of providing a consolidated statement.

This legislation aims to enhance transparency in the claims settlement process by ensuring that insured parties and mortgagees are clearly informed about the distribution of settlement proceeds across different coverage types. The requirement for a detailed statement is intended to prevent confusion and facilitate better understanding of the settlement amounts related to various aspects of the insurance policy.

Statutes affected:
HB558 Original: 22:1973(B)(5)