LA HB577

Amends R.S. 22:1892(B)(1)(a) to change insurance penalty calculations from a fixed 50% to "up to 50%" of the amount found due from insurer to insured when payment failures are arbitrary, capricious, or without probable cause

Applies to non-life and non-health/accident insurance policies where insurers fail to pay claims within 30 days after receiving satisfactory proofs and demand

Penalties also include proven economic damages from the breach, or $1,000 (whichever is greater), plus reasonable attorney fees and costs

For partial payments, the penalty calculation changes from a fixed 50% to "up to 50%" of the difference between the amount paid/tendered and the amount found to be due

Penalties awarded cannot be used by insurers when computing past or prospective loss experience for setting rates or making rate filings