Senate Bill No. 512, introduced by Senator Cathey, establishes a mandatory right of appraisal for automobile repairs within automobile insurance policies in Louisiana. The bill enacts R.S. 22:1289.2, which requires all automobile insurance policies issued in the state to include a clause that allows policyholders to resolve disputes regarding claim valuations through an independent appraisal process. This process involves the selection of one appraiser by the insurer, one appraiser by the policyholder, and a neutral umpire to facilitate the appraisal.

The bill outlines the appraisal process and mandates that it follows the procedures specified in R.S. 22:1807.13 and 1807.19. The proposed law aims to provide a structured method for policyholders to address disagreements over the value of claims, thereby enhancing transparency and fairness in the claims process. The provisions of this bill will take effect on August 1, 2026.