This amendment requires insurance companies to check a contractor's license before paying for home repairs, protects insurers from penalties if they cannot verify the license online, defines lying about facts as breaking their duties, and limits when people can sue them over injury claims.
Louisiana2026Enacted
HB1162
Insurance Claims and Contractor License Verification
Last scannedAug 25, 2026, 3:26 AM
In one sentence
This Louisiana law requires insurance companies to check a contractor's license status before paying checks made out to them for property repairs, while protecting insurers from penalties if the licensing website is down.
What it does
- Requires insurers or their adjusters to verify a contractor's license through the official state board website before issuing payments where the contractor is named on the check for repairing immovable property.
- Creates a safe harbor rule that prevents bad faith claims, penalties, and attorney fees against insurers if payment delays happen because they cannot access the licensing verification website.
- Requires insurers to document their failed attempts to verify licenses in the claim file, including the date, time, and result of the search.
- Mandates that insurers send written notice to homeowners within five business days after a failed license check attempt, explaining that payment is delayed pending verification.
Who it affects
- Insurance companies operating in Louisiana
- Homeowners or property owners filing claims for repairs on immovable property
- Contractors who are named as payees on insurance checks
Limits and unknowns
- The law only applies when a contractor is named on the check for repairs to immovable property.
- Insurers must document attempts and notify homeowners within five business days to qualify for protection; the text does not specify penalties if they fail these steps.
Plain language
Terms to know
- Named payee
- A contractor listed directly on an insurance check to be paid for repair work.
- Safe harbor
- Legal protection that prevents penalties or bad faith claims when a payment delay is caused by the inability to verify a license through the state website, provided specific steps are followed.
- Immovable property
- Real estate such as land and buildings attached to it, like homes.
Official record
Sources
Official summary
INSURANCE CLAIMS: Provides relative to the verification of contractors
Official activity
Bill history
- Effective date: 08/01/2026.H
- Becomes Act No. 932 without the Governor's signature.H
- Sent to the Governor for executive approval.H
- Signed by the President of the Senate.S
- Enrolled and signed by the Speaker of the House.H
- Read by title, roll called, yeas 97, nays 0, Senate amendments concurred in.H
- Scheduled for concurrence on 05/26/2026.H
- Received from the Senate with amendments.H
- Rules 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.S
- Reported with Legislative Bureau amendments which were read and adopted. Read by title and passed to third reading and final passage.S
- Committee amendments read and adopted. Read by title and referred to the Legislative Bureau.S
- Reported with amendments.S
- Read second time by title and referred to the Committee on Insurance.S
- Received in the Senate. Read first time by title and placed on the Calendar for a second reading.S
- Read third time by title, amended, roll called on final passage, yeas 99, nays 0. Finally passed, title adopted, ordered to the Senate.H
- Scheduled for floor debate on 04/21/2026.H
- Read by title, ordered engrossed, passed to 3rd reading.H
- Reported favorably (12-0).H
- Read by title, under the rules, referred to the Committee on Insurance.H
- Read by title. Lies over under the rules.H
Changes
Amendments
7 stored
This amendment changes the deadline for verifying contractors by replacing a fixed thirty-day rule with references to specific state laws that determine the correct timeline.
This amendment records that the House voted to agree with changes made by the Senate to a bill about checking insurance contractors.
This amendment adds new rules about insurance companies acting in good faith, lists specific actions that break those duties, and limits when people can sue over these issues.
This amendment fixes a labeling error in the bill by changing the word 'Subsection' to 'Paragraph'.
This amendment changes the rules for insurance claims by adding a thirty-day deadline and updating how specific state laws are referenced.
This amendment changes the bill so that insurance companies must verify contractors within thirty days, unless a specific exception applies.