06LegSummaryProperty

Property and Casualty Insurance
2006 Regular Session of the Louisiana Legislature

Insurers may not use credit information to increase an expiring premium for policies that renew between the effective date of this Act and 12/31/06. (Adds R.S. 22:1484(10))
HB 318  Richmond; Act 688; Effective 8/15/06

Notice of nonrenewal of certain property or casualty insurance policies must be delivered to each mortgagee, pledgee, or other known person shown by the policy to have an interest in any loss covered by the policy. (Amends R.S. 22:636(G))
HB 340  Carter, K.; Act 345; Effective 8/15/06

Any bill or other notice requiring payment of a premium for a policy of property or casualty insurance sent by an insurer to its policyholder must identify the property sufficiently to allow the policyholder to identify the property upon which the premium is due. Exempts bills for policies which are billed more often than semiannually or those bills for policies which insure multiple properties, locations, or vehicles. (Adds R.S. 22:1478)
HB 456  Hebert; Act 381; Effective 8/15/06

Owners of vehicles damaged in natural disasters are exempt from the motor vehicle sanctions relative to compulsory motor vehicle liability security. (Amends R.S. 32:863(B)(3), (C), and (D)(1); adds R.S. 32:863(E))
HB 934  Quezaire; Act 406; Effective 8/15/06

Requires either an explanation of any premium increase or a statement asking the insured to contact his insurance company or its agent for any questions in order for an insurance company to be entitled to any additional premium.(Amends R.S. 22:1464(A)(1))
HB 1073  Hutter; Act 784; Effective 6/30/06

Claims adjusters. Provides for the licensure of claims adjusters by the commissioner of insurance, including provisions relative to exemptions, examinations, reciprocity, qualifications for licensure, causes for suspension, revocation, refusal to issue, renew or reinstate licenses, fines, continuing education, and standards of conduct. Specifies that beginning 6/30/07, any person who is either employed or contracts to perform services as an adjuster must obtain a license from the Dept. of Insurance. (Adds R.S. 22:1210.71-1210.87)
HB 1056 Farrar; Act 783; Effective 1/1/07

Exempts windstorm and hail coverages from certain requirements used to set rates for policies offered by the Louisiana Citizens Property Insurance Corporation until 1/1/09. Authorizes agents to sell Coastal and FAIR plan coverage. Insurance agents must have adequate errors and omissions insurance and complete a training course to qualify for binding authority. (Amends R.S. 22:1430.6(C)and (D)(1) and (6), 1430.12(A)(1), and 1464(A)(1); R.S. 22:1430.6(D)(7), and (8), and 1430.22))
HB 1141  Hebert; Act 787; Effective 8/15/06

Requires property insurers to maintain written catastrophe response plans describing the insurers response to catastrophes affecting its policyholders. The commissioner is to review plans. Response plans are considered confidential proprietary information, not subject to public records disclosure, and may not be made public by the commissioner. (Adds R.S. 22:1478)
HB 1272  Johns; Act 429; Effective 8/15/06

Public Adjusters. Sets up a licensing system for public adjusters. After 6/30/07, no one may act as a public adjuster unless licensed by the Dept. of Insurance. Adjusters are allowed to charge a reasonable fee, but cannot charge a contingency fee. Contracts must be in writing and contain certain provisions, including full disclosure of the compensation the public adjuster is to receive. Public adjusting is defined to include investigating, appraising or evaluating and reporting to an insured in relation to a first-party claim, but does not include handling claims for damages arising out of the use of a motor vehicle and does not include any activities that may constitute the unauthorized practice of law. A public adjuster may not solicit an insured during a loss-producing event, may not have a financial interest in the claim, may not acquire an interest in salvage of the insured’s property, may not solicit employment for an attorney or contractor in connection with a loss in which he is employed as an adjuster, may not render legal advice to the insured, including legal advice regarding policy provisions or coverage issues. Repeals R.S. 22:1476 [Public adjuster defined; contingent fee agreements; contrary to public policy. Acts 2003, No. 148, §1]. (Adds R.S. 22:1210.71-1210.88; repeals R.S. 22:1476)
HB 1384  Carter, K.; Act 806; Effective 8/15/06

Bad-Faith Insurance Penalties. Increases penalties for arbitrary and capricious failure to pay claims timely to 50 percent of the damages due, adds reasonable attorney’s fees and costs as part of the penalty and prohibits insurers from passing on the penalty payments to policyholders in the form of rate increases. (Amends R.S. 22:658(B)(1))
SB 620  Murray; Act 813; Effective 8/15/06