Bill > HB437

This bill modifies Louisiana insurance laws to improve claim settlement practices for property and motor vehicle insurance. It introduces new provisions that require insurers to provide more transparent and fair claim handling, particularly for rental vehicle and property damage claims. Specifically, the bill allows insurers to withhold replacement cost payments until they receive proof of deductible payment, mandates that insurers pay for reasonable rental expenses if a third-party claimant is without their vehicle for more than five business days, and establishes penalties for insurers who fail to provide timely rental vehicle coverage. The bill also standardizes how insurers determine vehicle replacement costs by requiring the use of recognized industry sources and allowing local market value considerations. Additionally, the legislation creates a new standard proof of loss statement form that insurers must use when requesting documentation for claims, including requirements for providing the form within ten business days and maintaining it on their website. These changes aim to protect policyholders by ensuring more equitable and prompt claim settlements, with financial penalties for insurers who do not act in good faith.

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https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB437&sbi=y