House Bill No. [insert bill number] amends and reenacts several provisions of Louisiana's insurance law, specifically R.S. 22:1892, to enhance settlement practices for property and motor vehicle insurance claims. The bill allows insurers to withhold payment for recoverable depreciation or replacement cost holdbacks until they receive proof of the policyholder's payment of any applicable deductible. Acceptable forms of proof include canceled checks, credit card statements, or financing agreements. Additionally, the bill clarifies that a third-party claimant deprived of their vehicle for more than five business days due to an insurer's inaction is entitled to reasonable expenses for alternative transportation, with penalties for insurers who fail to comply.

Furthermore, the bill introduces new requirements for insurers regarding proof of loss statements. Insurers may require claimants to submit such statements before making payments, and they must provide a standardized form within ten business days of receiving a claim. The bill also stipulates that insurers must notify claimants about the completeness of their proof of loss statements within the same timeframe. Penalties for insurers who fail to provide timely rental vehicle coverage to first-party insureds are increased, with a maximum penalty of $2,500 for arbitrary or capricious failures. Overall, the bill aims to improve the efficiency and fairness of the claims process in Louisiana's property and casualty insurance sector.

Statutes affected:
HB437 Original: 22:1892(A)(7)