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Understanding Louisiana's Law Of Bad Faith When Claims Payments Are Delayed Or Paid Late – Real Estate Insurance Law Blog



A recent post, Louisiana policyholders deserve treatment in good faith – Understanding Louisiana Hurricane Claim Law Law discussed basic Louisiana laws that require insurance companies to treat policyholders in good faith and correctly interpret their insurance policies. What happens if insurance companies defer claims following the recent hurricanes in Louisiana? on loss. If an insurer delays payment for more than thirty days after the investigation of the claim, my considered opinion is that Louisiana policyholders should seek and be referred to legal counsel for their legal rights.

Louisiana Revised Statute § 22: 1892 states a 30 – days time period for fast payment. Louisiana Revised Statute § 22: 1

973 provides a 60-day period for the insurer to make an unconditional payment to the insured after the insured has made satisfactory proof of loss. These statutes have remedies and penalties when insurers do not comply with them. Insurance companies have 30 days to pay or be subject to penalties in Louisiana made it clear that current Louisiana case law interpreting Louisiana's statutes makes insurance companies that pay slowly become subject to bad faith claims:

Insurance companies adjust Claims from hurricane Ida can not delay investigation, damage assessment and quick payment without subjecting itself to statutory penalties. Insurers must pay undisputed amounts immediately or suffer the consequences.

In order to establish "satisfactory proof of loss" in Louisiana, the insured must provide sufficient facts to fully inform the insurer of the claim and state the extent of the damage. 1 1. Proof of loss is a "flexible requirement to inform an insurer of the facts of the claim", and it does not have to be in writing or in any particular format. 2 If the insurer has actual knowledge of the facts of the claim, such knowledge notice and suffices as evidence of harm. Louisiana Supreme Court in the case Louisiana Bag considered that an insurer's formal requirement for proof of loss before payment is insufficient to create probable cause to delay payment, and to allow an insurer to do so would counteract the intent. and the purpose of the charter, as it would allow the insurer to determine only when proof of damage is received. will pay. Readers of this blog and policyholders who have been the subject of late payments should read Undisputed loss amounts should be paid immediately where I said:

I expect insurance defense attorneys will continue to claim that insurance companies have no obligation to pay installments of agreed loss amounts that are due. Otherwise, their clients will lose the case and be held accountable for not doing so. To me, it makes no sense for the law to support and grant immunity to slow-paying and underpaying insurance companies. The whole purpose of insurance is to shift the financial burden to the insurer.

Insurance companies that put forward this argument in Louisiana will and should be punished. The sad truth is that not all states have laws on policyholders' protection that make this the nation's law.

Thought for the day

Protect the consumer by owning the product all the way from land bordet.
—Henry J. Heinz
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1 Combetta v. Ordoyne 934 So. 2d 836, 843 (La. App. 2006).
2 Louisiana Bag Co. v. Audubon Indem. Co. 999 So. 2d 1104, 1119 (La. 2008).


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