This bill enacts a new section, R.S. 22:1274, which defines "assignment agreement" and prohibits the assignment of post-loss benefits under residential or commercial property insurance policies. Specifically, it states that any assignment agreement is against public policy and is null and void. However, exceptions are made for assignments to federally insured financial institutions, mortgagees, or subsequent property purchasers, as well as for liability coverage under property insurance policies. Violations of this prohibition are classified as unfair or deceptive trade practices, subjecting violators to penalties outlined in R.S. 22:1969.

Additionally, the bill repeals R.S. 37:2159.1(7), which previously addressed the assignment of benefits in the context of home improvement contracting. The new provisions clarify that attorneys are still permitted to collect contingency fees related to property insurance claims, ensuring that legal practices remain unaffected by the new restrictions on assignment agreements.

Statutes affected:
HB183 Reengrossed: 37:1(7)
HB183 Enrolled: 37:1(7)
HB183 Act : 37:1(7)