Insurers who fail to pay property damage claims in a timelymanner will pay even more, according to an article by the BatonRouge daily Times-Picayune newspaper.
According to reporter Robert Travis Scott, a bill passed by theHouse Insurance Committee last week would raise penalty prices forinsurers who delay paying claims. The proposed legislation wascreated based on homeowners' frustrations from Hurricanes Katrinaand Wilma.
Current Louisiana law requires insurers to pay claimants within30 days once the damaged has been proved and the financial amountverified. Senate Bill 620, by Sen. Edwin Murray (D-New Orleans),would double insurers' late payment fee from 25 to 50 percent ofthe damages owed, said the Times-Picayune. The bill would alsoallow courts to mandate that insurers pay attorneys' fees.
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