Legislative Update:  Louisiana Legislative Acts 2022 and 2023 Sessions

For more information about the NAIIA legislative committee and upcoming events, contact National Legislative Chair Barry A. Parks of Hausch & Company at barry@hauschco.com or visit us at www.NAIIA.com.


Hurricane Mitigation Commission:

In the 2023 Louisiana Legislative Session, Senate Concurrent Resolution #7 (SCR 7) created the Hurricane Mitigation Commission to study the handling of property insurance claims in the wake of hurricanes, the practices of property insurance claims adjusters, and the necessity of a catastrophe savings account. The Commission is tasked with making recommendations in a written report to the Senate Committee on Insurance and the House Committee on Insurance, no later than February 1, 2024.  

The Hurricane Mitigation Commission will consist of 14 members, including, “A member selected from the membership of the National Association of Independent Insurance Adjusters.”

NAIIA Member and President Elect Bill Schulenberg was appointed in June 2023 to the commission and is actively participating to address the complex issues involving property insurance claims in the state.

The commission is currently reviewing two bills regarding “Bad Faith” as it pertains to the property and casualty market. These bills will be introduced in the upcoming spring 2024 session.

Major Insurance Laws passed by the Louisiana Legislature in 2022 and 2023:

AOB Restriction:

HB 183 submitted by State Rep. Gabe Firment (R-District 22) bans AOB “assignment of benefits” contracts, meaning policyholders’ rights could not be transferred from the policyholder to a contractor working on a claim, including the right to payments and the right to sue.

Insurance Incentive for new carriers:

In February, during a special session HB 1 was introduced and approved $45 million in funds toward the Insure Louisiana Incentive Program in an effort to get more home insurance companies to write policies in the state.

Since Hurricane Laura in 2020, insurance companies have steadily stopped doing business in the state or become insolvent, and several have stopped writing new policies for homeowners south of Interstate 10.

Fortified Homes:

HB 110 Another major property insurance bill per the Louisiana House legislative services report: HB 294 and HB 309 Require insurance companies to provide discounts for individuals who build or retrofit their homes or businesses using certain fortified home or commercial standards.

Adjuster Reports:

SB106 Requires the insurer to provide upon written request of the insured claim file for certain records in connection with an unsettled property insurance claim.

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