House Bill No. 1117, introduced by Representative Firmant, amends R.S. 22:868(B) to clarify the terms surrounding insurer contractual payments and the associated prescriptive periods. The bill stipulates that no insurance contract issued in Louisiana can limit the right of action against the insurer to less than 24 months after the loss for first-party claims, or to less than one year for other types of insurance claims, unless specifically provided otherwise in the law.

Additionally, the bill introduces new language stating that an insurer's payment under the terms of its contract will not be regarded as an acknowledgment of a debt, nor will it extend the contractually defined prescriptive period that begins at the inception of the loss. This clarification aims to protect policyholders by ensuring that their rights to claim are not inadvertently affected by the insurer's payment actions. The bill will take effect upon the governor's signature or after the designated time for gubernatorial action.

Statutes affected:
HB1117 Original: 22:868(B)
HB1117 Engrossed: 22:868(B)