HB 1162: INSURANCE CLAIMS: Provides relative to the verification of contractors - Louisiana

HB1162 Original → HB1162 Act 932 · 5 edits

MODERATE

This bill updates the requirements for insurers handling claims for property repairs by adding a new co-sponsor and expanding the specific sections of the law being amended. It clarifies that insurers must verify contractor licenses before paying claims for immovable property repairs and establishes a 'safe harbor' rule that protects insurers from bad faith penalties if they delay payment solely to verify a contractor's license status, provided they document the attempt and notify the insured within five business days.

Scope change

The bill expands the scope of the amendment to include additional subsections of the existing insurance code (specifically adding R.S. 22:1892(I)(2)(a), (3), (4) and (L)) and introduces new provisions regarding breach of good faith duty and limitations on causes of action that were not present in the original version.

ELIGIBILITY

Added Representative Chassion as a co-sponsor to the bill.

REQUIREMENT

Updated the summary of the bill to explicitly mention new provisions for breach of good faith duty and limitations on causes of action.

Established a 'safe harbor' protection for insurers, shielding them from bad faith penalties and attorney fees if a payment delay is directly caused by their inability to verify a contractor's license status, as long as they document the search and notify the insured within five business days.

ENFORCEMENT

Defined specific acts that constitute a breach of an insurer's duties, such as misrepresenting policy provisions or failing to offer a settlement within policy limits.

Clarified that the new safe harbor rules do not create a cause of action against an insurer for personal injury or bodily injury claims.

HB1162 Enrolled → HB1162 Original · 4 edits

MODERATE

The bill was simplified by removing references to specific existing subsections (I)(2)(a), (3), and (4) that were previously amended. Instead, the bill now focuses on adding a new section (L) that requires insurers to verify contractor licenses before paying claims for property repairs and provides a 'safe harbor' exemption from penalties if delays occur due to this verification process.

Scope change

The bill's scope shifted from amending multiple existing clauses to primarily establishing a new requirement for license verification and a corresponding protection for insurers facing delays.

REQUIREMENT

Removed text referencing amendments to existing subsections (I)(2)(a), (3), and (4), indicating these specific changes were no longer part of the bill.

Added a new requirement for insurers to verify contractor license status through the state licensing board website before issuing payments to contractors named on checks for property repairs.

ENFORCEMENT

Added a 'safe harbor' provision that shields insurers from bad faith penalties or attorney fees if payment delays are caused by their inability to verify a contractor's license.

TECHNICAL

Simplified the bill's title and summary to reflect the new focus on verification and safe harbor rather than a broad list of existing amendments.

HB1162 Reengrossed → HB1162 Enrolled · 4 edits · May 27, 2026

MODERATE

This bill updates the requirements for insurers to verify contractor licenses before paying claims for property repairs. It adds specific statutory references to clarify which laws apply and introduces new rules defining what constitutes a breach of good faith duty by insurers, including specific acts that violate these duties. The changes also clarify when insurers are protected from bad faith penalties if they delay payments to verify a contractor's license.

Scope change

The bill's scope was expanded to explicitly include new statutory references (R.S. 22:1892(I)(2)(a), (3), and (I)(4)) and to formally define breach of good faith duties, whereas the previous version focused primarily on the verification process and safe harbor provisions.

REQUIREMENT

Added specific statutory citations (R.S. 22:1892(I)(2)(a), (3), and (I)(4)) to the act's purpose and the section being amended.

Modified the section header to include 'breach of good faith duty' alongside existing topics like penalties and arson-related claims.

DEFINITION

Added a new subsection defining specific acts that constitute a breach of the insurer's good faith duty, such as misrepresenting policy provisions.

ENFORCEMENT

Added limitations on causes of action, specifying that the new breach of duty provisions do not create a separate cause of action against insurer representatives.

HB1162 Engrossed → HB1162 Reengrossed · 3 edits · May 18, 2026

MINOR

The bill was reengrossed to add a second sponsor and to simplify the payment timeline rules. The specific 30-day deadline for paying claims was removed and replaced with a reference to existing state laws, while the requirement to verify contractor licenses before payment was retained. This change clarifies that insurers must follow current statutory timelines rather than a fixed period, reducing potential conflicts with other regulations.

Scope change

The bill's scope remains focused on insurance claims for immovable property repairs, but the specific payment deadline criteria were modified to align with existing statutes.

REQUIREMENT

The mandatory 30-day payment deadline was removed and replaced with a requirement to pay according to existing laws (R.S. 22:1892(B) or 22:1892.2).

The requirement for insurers to verify a contractor's license status before issuing payment was retained in the reengrossed version.

ELIGIBILITY

Representative Chassion was added as a co-sponsor to the bill.

INSURANCE CLAIMS: Provides relative to the verification of contractors

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