Louisiana Revised Statute 22:1892 (often referred to as La 22) outlines crucial regulations for insurance claim payments and adjustments in Louisiana. This comprehensive statute addresses various aspects of the claims process, including payment timelines, penalties for non-compliance, good faith duties, and specific provisions for different claim types. Understanding LA 22 is vital for both insurance companies and policyholders in the state.
Key Provisions of LA 22 for Insurance Claims
LA 22 sets forth specific timelines for insurers to pay claims and initiate loss adjustments. For most claims, payment is due within 30 days of receiving satisfactory proof of loss. For third-party property damage and reasonable medical expense claims, payment is due within 30 days of a written settlement agreement. Loss adjustments for property damage claims, excluding catastrophic losses, must begin within 14 days of notification. Catastrophic losses, as defined in the statute, have a 30-day initiation period, with potential extensions allowed under specific circumstances.
Penalties for Non-Compliance with LA 22
Failing to adhere to these timelines can result in significant penalties for insurers. Non-payment within the stipulated timeframe, if deemed arbitrary, capricious, or without probable cause, can lead to penalties of 50% of the amount due, plus proven economic damages and attorney fees. There are specific penalty provisions for catastrophic losses related to immovable property, outlined in R.S. 22:1892.2. LA 22 also addresses the suspension of payments for arson-related claims under investigation.
Good Faith and Fair Dealing Under LA 22
The statute emphasizes the duty of good faith and fair dealing for both insurers and claimants. Insurers are obligated to adjust claims fairly and promptly, making reasonable efforts to settle with the insured or claimant. Specific actions constituting a breach of this duty are listed in the statute, including misrepresenting facts, delaying settlements, and denying coverage based on altered applications. Claimants also have a duty of good faith and fair dealing, with specific actions constituting a breach outlined as well. Breaches of good faith can impact penalty and attorney fee awards.
LA 22 Provisions for Specific Claim Types
LA 22 includes specific provisions for various claim types. It addresses claims related to vehicle damage, outlining requirements for providing alternative transportation when a claimant’s vehicle is unusable due to the insurer’s inaction. The statute also dictates how actual cash value is determined for total loss vehicle claims, outlining acceptable methods for calculating the vehicle’s value. Additionally, LA 22 outlines rules regarding depreciation in property damage claims, requiring insurers to provide notice and explanation for any depreciation applied.
Appraisal Process and Exemptions under LA 22
LA 22 details the appraisal process for resolving disputes regarding the amount of loss in property damage claims. It also specifies that certain entities, like the Louisiana Insurance Guaranty Association and the Louisiana Citizens Property Insurance Corporation, are exempt from certain provisions, including class action lawsuits and specific damage awards. Finally, LA 22 clarifies that its provisions do not apply to life, health, and accident insurance policies.
