House Bill No. by Representative Glorioso amends R.S. 22:1892(A)(1) and enacts R.S. 22:1892(L) to enhance the verification process for contractors involved in insurance claims related to the repair or restoration of immovable property. The bill mandates that if a contractor is named as a payee on a check or draft, the insurer or its adjuster must first verify the contractor's license status through the Louisiana State Licensing Board for Contractors. The insurer is required to pay the claim amount within thirty days after receiving satisfactory proof of loss and completing the necessary verification.

Additionally, the bill introduces a safe harbor provision that protects insurers from being deemed to have acted in bad faith or facing penalties for delays in payment if such delays are directly attributable to their inability to verify a contractor's license. To qualify for this protection, insurers must document their verification attempts and notify the insured within five business days of any failed verification attempts, indicating that payment is being withheld pending the contractor's license verification.

Statutes affected:
HB1162 Original: 22:1892(A)(1)