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New Louisiana Insurance Laws 2024: Key Changes to Claims Handling Process

Scott Wolfe
Scott Wolfe
Insurance law alert in Louisiana. New 2024 regulations passed. How will it impact insurance claims process?

May 2024 – Louisiana, USA

Louisiana Governor Jeff Landry’s recent signing of four transformative insurance bills marks a significant overhaul aimed at refining the property insurance claims process in the state. These changes, effective from July 1, 2024, introduce clearer regulations and expectations that directly impact how insurance claims are made, managed, and settled, particularly in the aftermath of catastrophic events.

Detailed Breakdown of Changes Impacting Claims:

  • Senate Bill No. 323 (SB 323): This bill establishes a straightforward timeline for the insurance claims process, aiming to reduce unnecessary delays and conflicts. It mandates insurers to acknowledge claims promptly and sets strict deadlines for the initial assessment and final decision of claims. Notably, SB 323 introduces a ‘cure period,’ which allows both the insurer and the policyholder additional time to resolve disputes before proceeding to litigation. This is designed to minimize litigation costs and improve the resolution process.
  • House Bill No. 611 (HB 611): This legislation modifies policy renewal practices, allowing insurers to nonrenew up to 5% of policies annually. This change impacts policyholders by potentially increasing the frequency of shopping for new policies but also allows insurers to manage risks more effectively post-claim.

Impact on Claims Handling

    • Speed and Clarity: The new timelines established by SB 323 ensure that policyholders have a clear expectation of how quickly their claims will be processed. This reduces the ambiguity that often leads to disputes and dissatisfaction.
    • Dispute Resolution: The introduction of a cure period offers a structured opportunity for resolving conflicts without immediate resort to litigation, promoting a more cooperative interaction between insurers and policyholders.
    • Renewal and Risk Management: Changes in policy renewal rules (HB 611) may influence how insurers handle ongoing claims, especially nearing policy renewal dates, affecting claims outcomes and policyholder negotiations.

Implications for Stakeholders:

These reforms are intended to create a more efficient and responsive insurance market in Louisiana, benefiting both insurers and policyholders. Policyholders should particularly note the potential for faster claims processing and clearer guidelines on dispute resolution, which can significantly enhance their ability to manage claims effectively.

Action Steps:

  • For Insurers: Update training programs and operational protocols to comply with the new timelines and procedures. Ensure customer service and claims handling departments understand the implications of the cure period and new renewal policies.
  • For Policyholders: Familiarize yourself with your rights under the new laws, especially the timelines for claim processing and the options available during the cure period. This knowledge is crucial for effectively navigating the claims process.
  • For Legal and Insurance Professionals: Adjust legal strategies and client consultations to align with the new regulatory environment. Understanding the nuances of these changes will be key in advising clients accurately, both in preparing claims and in resolving disputes.

Further Resources:

For a more comprehensive understanding of each bill and its specific provisions, stakeholders are encouraged to review the full text of the legislation available on the Louisiana State Legislature’s website here…or, we’ve collected all 4 acts into one PDF, and you can download all 4 acts here.

By staying informed and proactive, all parties involved in the insurance claims process can navigate these changes effectively, leading to a smoother claims experience and more predictable outcomes.

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Scott G. Wolfe Jr.
Nate Budde
Martin Roth