LA HB1162

Insurers must verify a contractor's license status through the Louisiana State Licensing Board for Contractors website before issuing payment when a contractor is named payee on a check for repair or restoration of immovable property.

Claims must still be paid within 30 days after receipt of satisfactory proof of loss, but the deadline now also includes completion of the contractor license verification when applicable.

Insurers receive a safe harbor from bad faith penalties and attorney fees for payment delays directly attributable to inability to verify a contractor's license through the licensing board's portal.

To qualify for the safe harbor protection, insurers must document the verification attempt in the claim file (including date, time, and result) and notify the insured in writing within 5 business days of a failed verification.

Amends R.S. 22:1892(A)(1) and adds R.S. 22:1892(L) to Louisiana insurance law governing payment and adjustment of claims.