House Bill No. [insert bill number] amends R.S. 22:1269 to establish new procedures for joining liability insurers in civil actions and asserting coverage defenses. The bill allows a liability insurer to be joined as a party defendant solely for the purpose of entering a final judgment or enforcing a settlement when direct action is not otherwise authorized. It also stipulates that if an insurer has timely denied coverage or reserved rights, they cannot be joined unless there has been an adjudication in favor of coverage. Additionally, a plaintiff must first file a petition to establish coverage and obtain a favorable adjudication before seeking to join an insurer post-verdict.

The bill revises the notice requirements for insurers asserting coverage defenses. It mandates that insurers provide written notice of reservation of rights to the named insured within ninety days of determining a coverage defense exists. Following this, within sixty days, the insurer must notify all counsel of record that a reservation of rights has been issued and inform the insured whether they are refusing to defend or are providing a defense under a reservation of rights. The proposed law retains existing provisions while enhancing the clarity and process surrounding liability insurance coverage and defenses.

Statutes affected:
HB765 Original: 22:1269(D)(1)