The bill amends Louisiana's insurance law, specifically R.S. 22:1892, to improve claims settlement practices and introduce new definitions and penalties related to insurance claims. It establishes a "good faith duty" for insurers, requiring them to adjust claims fairly and promptly, and introduces penalties for violations of this duty. The bill defines "catastrophic loss" and sets specific timelines for insurers to initiate loss adjustments and make payments following such events. Additionally, a new section, R.S. 22:1892.2, outlines claims settlement practices for catastrophic losses, including payment timelines and penalties for non-compliance.

The legislation also repeals existing penalties under R.S. 22:1973, replacing them with a new structure that includes economic damages and attorney fees for breaches of good faith, while establishing a two-year prescriptive period for related claims. It requires insurers to provide a cure period notice before any lawsuit is filed, which will stay the suit for sixty days, and allows for the dismissal of prematurely filed lawsuits if the insurer pays the full amount demanded within the specified timeframe. The bill clarifies that certain provisions do not apply to life and health insurance policies and exempts specific entities from class action provisions related to penalties. It is set to take effect on July 1, 2024, or upon legislative approval if vetoed by the governor.

Statutes affected:
SB323 Original: 22:1892(A)(3)
SB323 Engrossed: 22:1892(A)(3)
SB323 Reengrossed: 22:1892(A)(3)
SB323 Enrolled: 22:1892(A)(3)
SB323 Act : 22:1892(A)(3)