The bill, HB 1117, addresses the contractual obligations of insurers regarding payments made under homeowners' insurance policies. It amends existing law to clarify that payments made by insurers under the terms of their policies, rather than contracts, will not be considered an acknowledgment of debt or extend the prescriptive period for claims, which begins at the inception of loss. Additionally, the bill mandates that insurers provide written notice to claimants indicating that such payments do not interrupt or extend the applicable prescription period for claims related to dwelling coverage or other structures.

The bill also includes provisions that will take effect on January 1, 2027, and retains existing laws that prohibit insurance contracts from limiting the right of action against insurers to less than 24 months after the loss occurs for first-party claims. The Conference Committee Report adopted certain Senate amendments while rejecting others, ultimately refining the language to ensure clarity and compliance with current legal definitions.

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