Under the newly enacted Act 29, all insurance adjusters and producers in Louisiana are required to complete training courses on ethics, flood insurance and insurance law. (Credit: Ingo70/Shutterstock)
Six new laws that make significant changes to Louisiana’s insurance landscape went into effect on August 1. These regulations are part of a push from the state’s lawmakers to make insurance premiums more affordable for residents.
A look at the new laws
Roofing standards
Act 239 requires parishes and municipalities that issue building permits to inspect a building’s roofing as part of that process. This regulation is intended to ensure uniform compliance to building standards across the state and to reduce substandard roofing work.Contractor regulations
Act 144 prohibits public adjusters from serving as contractors or offering construction or roofing services related to the claims on which they are working. This act aims to eliminate conflicts of interest and better protect consumers after disasters.
Act 144 also prohibits home improvement contractors from providing homeowners with agreements that don't include an itemized estimate, from advertising themselves as insurance claims specialists and from offering insurance policy interpretation or consulting as part of their sales pitch to consumers.
Insurance education
Under the newly enacted Act 29, all insurance adjusters and producers in Louisiana are required to complete training courses on ethics, flood insurance and insurance law. The act also increased the threshold for when an insurer-employed adjuster must be licensed from $500 in claim value to $2,000.
Roof registry
Act 62 establishes the Louisiana Roof Registry, which is a voluntary database run by the state’s Department of Insurance. The registry is designed to streamline roof claim verification and inspections after disasters. It allows both property owners and local governments to submit information about building permits as it relates to roof work. Louisiana’s Insurance Commissioner is tasked with developing the rules about what information can be submitted to the database and how it may be used.
Hands-free only
Act 288 bans the use of handheld wireless devices while driving. However, drivers are still permitted to use phones in hands-free mode, and exceptions will be made for emergency calls or law enforcement. Violations of this law that occur in school or construction zones are now considered primary offenses and carry a minimum $250 fine, which jumps to $500 if the driver’s actions lead to an accident.
Claims transparency
The final new law to go into effect in Louisiana last week was Act 500, which aims to increase transparency in the property insurance claim process. Insurance companies are now required to provide a clear timeline for claims and maintain approved proof-of-loss forms on their websites.
This law also allows insurers to require proof that an insured has paid their deductible before releasing recoverable depreciation payments to them. In addition, Act 500 strengthens penalties for late or unreasonable denials of rental car coverage and allows claimants to challenge auto stop-loss valuations if they produce two independent appraisals that are higher than the insurer’s initial claim offer.
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