Senate Bill No. 508, introduced by Senator Seabaugh, amends R.S. 22:868(B) to clarify the implications of payments made by insurance companies to their insured under the terms of their contracts. The bill stipulates that any payment made by an insurer will not be considered an acknowledgment of a debt, nor will it extend the contractually defined prescriptive period, which begins at the inception of the loss. This change aims to provide clarity and protect both insurers and insured parties regarding the timing and acknowledgment of claims.

The bill retains the existing provision that allows insurance contracts issued in Louisiana to limit the right of action against the insurer to a minimum of 24 months from the date of the loss's inception. By explicitly stating that payments do not affect the prescriptive period, the legislation seeks to prevent any potential confusion regarding the timing of claims and the obligations of insurers. The proposed changes will take effect on August 1, 2026.

Statutes affected:
SB508 Original: 22:868(B)