LouisianaInsurers would verify contractors before certain repair payments
Insurers would check certain repair contractors’ licenses before paying claims and could delay payment when the check cannot be completed, subject to notice and recordkeeping rules.
What it does
Insurers or their adjusters would check the state license of a contractor named on certain repair-payment checks before paying the claim.
Insurers could avoid bad-faith penalties and attorney fees for payment delays caused by failed license checks, but only after documenting the search and notifying the insured.
An insurer’s representative could not be sued separately under these good-faith-duty rules when the claim is based on the insurer’s conduct.
Argument forClear license checks and written notices could help property owners understand why an insurer has delayed a repair payment.
Argument againstPayment could be delayed when the licensing website or portal cannot verify a contractor, leaving property owners waiting for repair funds.
More detail
An insurer or its adjuster would first check a contractor’s license through the state contractors board’s website or portal. This applies when a contractor is named as a payee on a check or draft for repairing or restoring immovable property. The insurer must have satisfactory proof of loss before paying the claim. Payment must also follow the required license check when that check applies. The license check must happen before the insurer issues the covered payment.
An insurer would not be treated as acting in bad faith or owe penalties or attorney fees for a payment delay directly and reasonably caused by an inability to verify the contractor’s license. This protection applies to delays in transmitting payments covered by the insurance-claim payment rules. The insurer must record the search date, time, and result in the claim file. The insurer must notify the insured in writing within five business days after the failed search. The notice must say that payment is being withheld or delayed while the contractor’s license status is checked. The written notice is due within five business days after the failed verification attempt.
An insurer’s representative would not face a separate legal claim under these good-faith-duty provisions apart from a claim against the insurer. This applies to representatives of insurers under the good-faith-duty rules. This limitation does not erase the separate conditions that restrict claims involving personal injury or bodily injury.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 23Becomes Act No. 932 without the Governor's signature.Latest
- Jun 23Effective date: 08/01/2026.
- May 28Sent to the Governor for executive approval.To Governor
- May 27Enrolled and signed by the Speaker of the House.Minor
- May 27Signed by the President of the Senate.
- May 26Read by title, roll called, yeas 97, nays 0, Senate amendments concurred in.
- Vote recorded CONCUR IN SENATE AMENDMENTS (#1479). Result: pass.Lower
- May 25Scheduled for concurrence on 05/26/2026.
- May 19Received from the Senate with amendments.Minor
- May 18Rules suspended. Senate floor amendments read and adopted. Read by title, passed by a vote of 35 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.Passed Senate
- Vote recorded FINAL PASSAGE (#956). Result: pass.Upper
- May 11Reported with Legislative Bureau amendments which were read and adopted. Read by title and passed to third reading and final passage.Minor
- May 7Committee amendments read and adopted. Read by title and referred to the Legislative Bureau.
- May 6Reported with amendments.Minor
- Apr 27Read second time by title and referred to the Committee on Insurance.Minor
- Apr 22Received in the Senate. Read first time by title and placed on the Calendar for a second reading.Minor
- Apr 21Read third time by title, amended, roll called on final passage, yeas 99, nays 0. Finally passed, title adopted, ordered to the Senate.Passed House
- Vote recorded FINAL PASSAGE (#627). Result: pass.Lower
- Apr 20Scheduled for floor debate on 04/21/2026.
- Apr 15Read by title, ordered engrossed, passed to 3rd reading.Minor
- Apr 14Reported favorably (12-0).Minor
- Apr 1Read by title, under the rules, referred to the Committee on Insurance.Minor
- Mar 31Read by title. Lies over under the rules.Introduced
Consumer ProtectionEmergency ManagementForeign Policy