House Bill No. by Representative Glorioso amends R.S. 22:1892(B)(1)(a) to modify the penalties imposed on insurers for failing to timely pay claims under policies other than life and health insurance. The bill stipulates that if an insurer does not make payment within thirty days after receiving satisfactory proof of loss, or fails to make a written settlement offer, and this failure is deemed arbitrary, capricious, or without probable cause, the insurer may be subject to a penalty. This penalty is now defined as "up to fifty percent" of the amount found to be due to the insured, or "up to fifty percent" of the difference between any partial payment made and the total amount due, in addition to any proven economic damages and reasonable attorney fees.

The proposed changes aim to clarify the calculation of penalties while retaining the existing framework of penalties, damages, and attorney fees for insurers who do not comply with their obligations. The bill emphasizes that these penalties, if awarded, cannot be used by insurers to influence their rate-setting processes. Overall, the legislation seeks to enhance the accountability of insurers in fulfilling their payment responsibilities to insured parties.

Statutes affected:
HB577 Original: 22:1892(B)(1)